Buying a Property

General Counselling:

Buying a property has two facets; one a ‘dream home’, the other one a ‘pure investment’. Our trained Counselors will have deeper understanding on your requirement and offer overall guidance on all matters covering need to purchase, planning the entire cycle of events, such as shaping the concepts, getting consent of all family members and financial aspects etc. Guidance will be provided on verifying property documents (check-list), including legal documents, technical documents, approvals from Govt. authorities, insurance, taxation issues etc., along with post purchase compliances.

After the counseling, extending up to 2 hours, our clients would have attained preliminary knowledge on basic requirements and check points of purchasing a property. So, no Seller / Builder / Developer can take our clients on ride!

Legal Verification:

  1. Title Verification: Tracing the ownership trails of the particular property (under purchase) is the most important aspect of legal verification to find whether present owner has derived valid marketable title to the property. Title verification needs to be carried out by a well versed Property Advocate, who will thoroughly study the flow of title by going through the property documents and issues a Title Report.
  2. Original Verification: If Title Report is issued based on photo copies of property documents, verification of original title deeds becomes necessary to compare photo copies (to avoid fake/fabricated documents) and to ensure property is not mortgaged by way of deposit of title deeds to avail financial assistance from any Bank/Lender.
  3. Drafting of Sale Agreement and Sale Deed: Sale agreement is an important legal contract, which needs to be properly drafted by a Property Advocate, covering all terms and conditions of sale and needs to be executed on suitable stamp paper.

 

Similarly drafting of Sale deed is of paramount importance, as title flow, conveyance terms will have to be properly recited and all persons who have share/right/title/interest in the property needs to join the conveyance deed.

 

  1. Registration of Sale Deed: It is mandatory to register the Sale deed at the jurisdictional Sub Registrar’s office by paying requisite stamp duty and registration fees. It is advisable to take the help of Property Advocate for supervising the registration process.  Any mistake or omission in sale deed will cost heavily to both purchasers and sellers as correction at later stage needs Rectification Deed to be registered involving all parties to join hands and again registering the document.

We have Senior Property Advocates on our panel, who have decades of experience in property dealings. They are Legal Advisors to leading Banks and Home Finance Companies and top rated Builders and Developers.

Technical Aspects:

Depending on the type of property, the significance of surveying varies. If you are buying land (plot), built house/building, it is extremely necessary to  identify the property, understand the terrain, extent of land and measurement of building and match with Govt. records., which is known as Surveying, carried out by a qualified Surveyor (Chartered Engineer) in association with Govt. authorities.

If you are buying an apartment in a residential complex, then the Valuation of the property becomes important. Detailed valuation issued by an eminent Valuer, not only provide the present value of undivided share of land but also the value of built-up area (after measuring carpet area and super built-up area). The report also provides details common facilities, neighbourhood, locality, approach roads and all approvals obtained etc.

If property intended to buy is under construction, there is necessity to verify working plans and approved plans by experienced Architect/Chartered Engineer and supervise the construction periodically to verify whether quality of construction, materials used and workmanship is as per construction agreement.

We have leading Surveyors, Architects, Chartered Engineers and Valuers on our panel, who have decades of experience in their respective areas. Apart from successful in their profession, they are on the panel of leading Banks and Home Finance Companies.

 

Financial Planning:

The importance of Financial Planning can be gauged from the fact that most of us, not only tend to exhaust life time savings to acquire a property, but invariably end up in creating life time debt by way of Home Loan.

Before planning to buy a property, one has to prepare a realistic budget by considering number of related parameters and finalise the budget at the time of inking the deal. It is prudent to seek advice from a qualified financial advisor/wealth manager/mortgage banker who will guide on how to arrange the required funds from savings (Fixed Deposits, RDs, Provident Fund account etc.) and investments (liquidating Shares, Bonds, Debentures, Gold, sale/mortgage of properties, etc.). If looking for funding, first thing is to plan for margin money (possible loan amount less the acquisition cost of property), then to opt most suited loan option, after thoroughly considering parameters such as loan amount, tenure, interest, EMI, one time fees, prepayment charges and insurance charges etc. One needs to plan for life insurance (term insurance/mortgage redemption insurance) and the property insurance.

If purchase of property is purely for investment, financial planning needs to be on a different footing. The planning would concentrate on safety, liquidity, returns, keeping in mind the fact that real estate assets have capital appreciation, apart from periodical returns by way of rent/lease, which will also hedge the inflation.

It is equally important to plan for repayment, as home loans are to be repaid over long term and also borrowers need to maximise the incentives available under subsidy schemes and towards deductions available under Income Tax rules.

We have experienced mortgage bankers, CAs, CFPs and insurance professionals, on our panel, who have decades of experience financial planning, insurance and taxation matters, who will provide customised services at most affordable costs. We also advice on investing in new generation real estate assets, such as investing in commercial properties (plug and play offices), cloud funding, equity participation in real estate projects, etc.

Post purchase compliances:

There arenumber of formalities to comply, after purchase of property.

After purchase of built property, most of the time the owner needs to arrange for interiors, furniture and fittings. Depending on the property, usage (self use or to be let out) and other parameters, proper planning, designing and execution of interiors, needs to be carried out.

If a site/constructed independent building is purchased, it is mandatory to apply for change of Khata with concerned civic authority (like BBMP). Apart from paying requisite fee, updated property documents such as copies of sale deed, prior deed, latest EC, approved plan, existing Khata certificate and extract etc. will have to be produced. Similarly electricity, water and sewage connections need to be changed from seller’s name to new owner’s name.

If you buying an apartment from Builder, although Builder is supposed to form Association of Apartment Owners, many times, it is found, it is left to Owners to form the association, which requires Deed of Declaration by all owners (to be registered), NOC from Builder,  Byelaws of Association and registration of Apartment Owners’ Association, under Karnataka Apartment Ownership Act 1971. Further to complete Khata transfer process as above.

We have leading Architects and Interior Designers on our panel offering best of best solutions for interiors. Our Associate teams consisting of Property Advocates and Liasoning experts will make it easy for clients to procure required documents from various Govt. offices and follow up rigorously to complete all required assignments, such as issuance of Khata, registering the Apartment Owners’ Association etc.