Guide to buying Ready to move properties in India– Documents & Process

What is a Ready-To-Move property?

A ready-to-move property is a completely ready property for occupancy. These kinds of properties are getting famous and inhabited in India at a very fast pace. In a busy schedule of life, it is very difficult to build a house as it consumes your precious time. Hence, if you have the funds for complete payment, then a ready-to-move property is a good choice for you.

PROS OF A READY-TO-MOVE PROPERTY –

You get what you see: When you purchase a ready-to-move property, you get what you see. It is a finished project that can be turned over to the buyer.

The legal status is easily accessible: Because you are purchasing a ready and completed property, the legal status of the property is also easily accessible, and you can swiftly receive occupancy and completion certificates as needed.

No service tax: The nicest thing about buying a ready-to-move apartment is that you don't have to pay any service tax on what you buy, which saves you a lot of money.

Check out the neighborhood: When purchasing property in India, you should be aware of the surrounding area. In a ready-possession property, you may already have residents who can tell you much about your contractor and the quality of service.

CONS OF A READY-TO-MOVE PROPERTY –

Payment plans are rigid: When compared to under-construction developments, payment plans for a ready-to-move property are rigid. You must pay everything at once, including the down payment, stamp duty, registration fees, and maintenance.

More legal work and documentation: Purchasing a ready-to-move property necessitates more legal work and documentation than purchasing an under-construction residence.

Less customization: When the flat is under construction, you have complete freedom to design the rooms and residences to your specifications. This provision, however, is not available when purchasing a ready-to-move property. You must purchase and reside in a completed home.

What documentation should be verified before purchasing a ready-made apartment?

Deed of Sale

This is the most significant piece of paper needed when purchasing a home. The sale deed must be supplied in original form because it demonstrates ownership of title to the property. The sale deed must be registered with the Sub-Office Registrars in the region where the property is located.?

General Durable Power of Attorney

This document is necessary to prove whether the sale or purchase of a specific property is being carried out by an authorized person on behalf of the property's owner. This must be produced in original form to obtain a house loan.

Extract from the Mutation Register

This document is particular to Gram Panchayat properties and contains information about former ownership. Though not required in the original, this is required if the property you are purchasing is under Gram Panchayat authority.

Copy Of Building Plan

A buyer must obtain a copy of the building plan certified by the statutory body to ensure that the property's construction is lawful and adheres to established norms and regulations.

?Receipts for Property Taxes

Property owners are required to pay taxes. Ascertain that the previous occupier/owner paid property taxes and that there are no outstanding balances. Property tax receipts can also be used to prove the legal status of a property.

Certificates of No Objection (NOC)

A developer may need to obtain up to 19 NOCs from various authorities when constructing a housing project. However, the number may change depending on state regulations. Request copies of these NOCs from your developer and store them in your file.

?Extracts

In different states, the Khata certificate or extract is called by different names and is a necessary document for the registration of a new property. It is also essential if you intend to transfer ownership of the property later on. This document proves that the property is listed in the local municipal records and that the construction was completed by an approved plan.

?Sale Agreement

This document contains all of the property's information, such as the terms and conditions, the possession date, the payment plan, the specifications, information about the common spaces and facilities, and so on. The agreement also holds the developer liable for the property's construction. This document must be submitted in its whole to acquire a home and obtain a home loan.

?Possession Letter

This agreement is issued by the developer to the buyer and establishes the date on which the latter will award the former possession of the property. To obtain a house loan, an original copy of this document must be supplied.

Receipts for Payment

If you are purchasing a new home, obtain original payment receipts from the developer. If you are purchasing a resale home, request a copy of the seller's receipts to be presented to the bank.

?Encumbrance Certificate

An encumbrance certificate is necessary to demonstrate that there are no outstanding legal dues or mortgages on the property. This is one of the primary documents that banks require before granting you a loan. This certificate also contains all of the information about the transactions that occurred over some time.?

Completion Certificate

This paperwork is necessary when applying for a house loan. This paper establishes that the building was built by an approved plan.

Letter of Allocation

One of the most crucial documents required for obtaining a house loan is an allocation letter. It is provided by a developer or a housing authority and contains information about the property as well as the cash paid by the buyer to the developer. An allotment letter is issued on the authority's letterhead, but a sale agreement is registered on stamp paper.

Occupancy Certificate

The local government issues an occupancy certificate to the developer to confirm that the building is ultimately ready for occupancy and that the construction was completed by the approved plan.

To sum up all documents - Deed of Sale, General Durable Power of Attorney, Extract from the Mutation Register, Copy Of Building Plan, Receipts of Property Taxes, NOC, Extracts, Sale Agreement, Possession Letter, Receipts for Payment, Encumbrance Certificate, Completion Certificate, Letter of Allocation, Occupancy Certificate

?PROCESS OF BUYING

1.?Look for a Property - When looking for a home, people frequently go to brokers and talk to people they know. However, it was an old and customary method of searching for property. People are becoming smarter, and they are searching for property online using their smartphones. Always look for a website that gives them every detail about the property or seek consultant advice.

2. Be Wary of Unpaid Dues - Unpaid dues for properties are always disguised; they are not even mentioned by first-time house buyers, who are the most vulnerable to these types of scams. If the property you want to buy has a loan, request a NOC and a list of other documents that the bank has on file for that property. Also, check for tax papers and other bills that should be current; if they are not current and you have purchased the property, you will be liable.

3.?Always examine the papers/documents - A title fraud situation is one in which it is unclear who exactly owns the property. Someone creates a duplicate document of a property that does not belong to them and sells it to others. Or other, they try to sell properties while claiming to be POA holders.

?4. Bargain if You Can - After touring the RTM homes, you'll understand what the ideal pricing for the house should be. You can bargain with the vendor about it, and you must even take the seller's amenities into account. If an apartment is worth what the vendor is asking for, you don't always have to haggle to get it; you simply have to make the payment.

5. Booking Payment - If you found a flat you liked, book it as soon as you can. The reason is straightforward: you don't want to take the chance of receiving a flat at a higher price. RTM homes are typically reserved by submitting an advance payment; buyers typically reserve the apartment in this way.

6.?Agreement - An agreement is a formal contract that states the terms on which the buyer and seller have an understanding. The most important property information, such as the square footage and specific address, should be stated in the contract. The price for the discussed ready-to-move-in units will be mentioned in this agreement. Payment deadlines should be clearly stated, along with how and when the payment is due. If a buyer backs out of a purchase of the real estate, both parties will be subject to penalties, and the seller will retain any advance payments made by the buyer.

7. Legal paper of sales - Obtaining the sale deed for the property is the next step after making the payment. A sale deed is written documentation that shows the property has been transferred to the new buyer once the buyer has paid the entire purchase price. The buyer will be required to pay stamp duty and registration fees, which vary from place to place, for this process to be registered in the registrar’s office.

8. Name of the owner on every paper - After the sale deed, the buyer receives all the documents. It is the buyer's responsibility to update the name on every document that is given to them.