Critical Aspects of Buying a Resale Property

Thinking of purchasing a home? One of the most important factors to consider is the location. Most new apartments or plots are available in suburbs or city outskirts. This may be inconvenient if you have a long commute to work or your child’s school. In such cases, buying a resale property could be a better option.

Developed areas usually have existing infrastructure in place, including markets, banks, schools, hospitals, and other essential services. Another major advantage of a resale property is that you don’t need to wait for construction to finish. You can move in immediately and enjoy the convenience of a ready-to-occupy home.

If you’re planning to buy a resale property, keep these important factors in mind:

Age of the Property

Avoid very old properties (more than 50 years old), as they may have structural issues and require major repairs or even redevelopment. If the property needs refurbishing and you must temporarily rent another home, it can be inconvenient and expensive. Choose a relatively newer property to avoid such complications.

Existing Mortgage

Check whether the property has an existing loan. Always ask to see the original documents. If only photocopies are available, the originals might be with a lender. If you're applying for a home loan, let your bank verify the property documents during the loan process.

Transfer and Registration

You’ll need to pay transfer and registration charges, which may be substantial in some areas. Make sure you factor these into your budget as they could offset the benefit of buying a resale home.

Utility Transfers

You might need to pay utility transfer charges to get electricity, gas, or water services changed to your name. This could involve deposits or administrative fees.

Brokerage

Resale properties are usually bought through agents, so you may have to pay brokerage. While new properties bought directly from builders often avoid this cost, a reliable agent can reduce your effort and ensure a smoother process.

Repairs and Renovation

You may need to invest in painting, repairs, or modifications to suit your preferences. Calculate these costs beforehand so you aren’t caught off-guard later.

Facilities and Amenities

Older homes may lack modern amenities like gyms, pools, or clubhouses. Ensure that basic services—such as water supply, sewage, parking, and security—are functioning well.

Property Valuation

Get an independent valuation before finalising the deal. Lenders may offer a lower loan amount if their valuation differs from the market price, which means you’ll have to arrange for a bigger down payment.

Co-operative Housing Society

• Society Condition: Ensure the society is active and free from internal disputes.
• Transfer Fees: Pay applicable fees to transfer the property to the society’s records.
• Outstanding Dues: Confirm that the seller has cleared all society charges.
• Neighbourhood Check: Interact with residents and understand the community culture.

Apartment Owners’ Association

• Formation: Ensure the builder has formed the association if the flat is relatively new.
• Charges: Verify that the current owner has paid all dues.
• Rules: Review the association’s rules, especially if you plan to renovate or combine units.

Development Authority Settlement

Each state has its own housing authority, like DDA, PUDA, or MHADA.

• Property Age: Evaluate the condition and construction quality.
• Resale Restrictions: Some authorities restrict resale for a fixed number of years.
• Illegal Modifications: Avoid properties with unapproved alterations unless they are regularised.

Privately Built Home

• Property Age: Confirm whether the house is partially or fully constructed.
• Cost of Ownership: Include stamp duty, registration, and other fees in your total cost.
• Clear Title: Ensure there are no legal disputes, loans, or claims on the property.
• Outstanding Loans: Verify if the seller has cleared all home loans and insists on original papers.

Hiring a property lawyer is highly recommended when buying a resale home. The lawyer can verify documents and handle registration formalities. Only proceed once the seller presents all original documents. Do not pay a token amount or make a commitment without verification.

Documents Common to All Types

• Original sale deed and full chain of ownership
• Clear title with no legal encumbrances
• All prior sale deeds duly stamped and registered

For Co-operative Housing Societies

• Share certificate with names of all past owners
• Society letter with property details
• No dues certificate from the society
• NOC from society confirming rule compliance
• Incorporation certificate of the society
• Latest municipal tax receipt

For Apartment Owners’ Associations

• Incorporation certificate of the association
• Property registration card
• Occupancy certificate
• Registration fee receipt

For Development Authority Settlements

• Allotment, demand, and possession letters
• Electricity and water NOCs
• Conveyance deed (for freehold properties)
• House tax clearance certificate
• Municipal NOCs

For Privately Built Homes

• Sub- registrar's search report
• Building violation clearance from the local authority
• Judicial records check
• Sale and mother deeds
• Encumbrance certificate
• Khata (property account document)
• Occupancy and building approval certificates
• RTC/Pahani, conversion orders (if applicable)
• Collector’s NOC (if applicable)

Resale deals often move quickly. If you need funds from your current property to finance the new one, get your home loan pre-approved in advance. This gives you a strong position to negotiate and helps you close the deal faster. It also ensures that your lender has vetted the property.

A resale home is smart if you value a good location and ready infrastructure. You also avoid construction delays and can move in immediately. Getting a home loan for a resale property is easy with proper legal checks and the right documents. So before jumping into a new build, take a close look at resale options—they might be the perfect fit for your needs.