Buying an Old Property? Here are Things to Know
Jun 12, 2017 Home Trading Steps
Buying an old property seems like an only option sometimes, even though not favourable. When you are looking for a property in a developed locality, there are fewer chances of new projects coming up. The only way to fulfil the dream of living in an established locality is only after buying an old house. Buying either a new or an old house comes with their own liabilities.
We discuss certain things that you need to check before buying an old house:
1. Check the legal title:
Whenever you buy a property, the first thing to check for is the legal title. The legal check for old properties are very time consuming but worth it. First thing every buyer must do is check whether the property is registered with the government or not. Get a copy of sales agreement, sale deed, no objection certificate etc from the concerned authority for the property. Check if the property has any overdue payments like water tax, electricity bill property tax etc.
2. Financial abilities:
Buying a property from the seller is quite different from buying it from the developer. Developers’ financial ability is available to check. While in the case of the seller it is a bit tricky. Get an encumbrance certificate for the property to check for all the transactions that have been done in past in regard to the property. An encumbrance certificate has all the details of transactions. Ask your seller to give you’re a copy of no objection certificate from the bank keep in mind that the resale properties also involve cash components.
3. Home loan facility:
When you buy an old property, there are chances you will have to do a lot of fixing work and might have to do a lot of addition to the property as per your need. To make sure you have enough funds for that make sure the banks are ready to finance it. Banks do not give out the loan more than the amount mentioned in the sales deed.
4. Other charges:
There are other charges for the property as well, like maintenance charges. Check it with the local municipal to know about them further. If the property is old, then it does not charge the buyers for the amenities like lifts, community halls etc. check it with the seller for the electrical wiring etc to prevent from any accidents in future. check for repairs like sewage or pipelines etc.
We discuss certain things that you need to check before buying an old house:
1. Check the legal title:
Whenever you buy a property, the first thing to check for is the legal title. The legal check for old properties are very time consuming but worth it. First thing every buyer must do is check whether the property is registered with the government or not. Get a copy of sales agreement, sale deed, no objection certificate etc from the concerned authority for the property. Check if the property has any overdue payments like water tax, electricity bill property tax etc.
2. Financial abilities:
Buying a property from the seller is quite different from buying it from the developer. Developers’ financial ability is available to check. While in the case of the seller it is a bit tricky. Get an encumbrance certificate for the property to check for all the transactions that have been done in past in regard to the property. An encumbrance certificate has all the details of transactions. Ask your seller to give you’re a copy of no objection certificate from the bank keep in mind that the resale properties also involve cash components.
3. Home loan facility:
When you buy an old property, there are chances you will have to do a lot of fixing work and might have to do a lot of addition to the property as per your need. To make sure you have enough funds for that make sure the banks are ready to finance it. Banks do not give out the loan more than the amount mentioned in the sales deed.
4. Other charges:
There are other charges for the property as well, like maintenance charges. Check it with the local municipal to know about them further. If the property is old, then it does not charge the buyers for the amenities like lifts, community halls etc. check it with the seller for the electrical wiring etc to prevent from any accidents in future. check for repairs like sewage or pipelines etc.
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