what to check before buying a resale property

Buying a resale property can be a wise investment, especially if you’re looking for immediate possession, a prime location, or a better price than a new property. However, unlike newly constructed homes, resale properties come with their own set of challenges. It’s essential to conduct a thorough check to ensure you’re making a safe and profitable decision.

In this blog, we’ll walk you through the key things you must check before purchasing a resale property.

1. Ownership and Title Verification

Start by checking who legally owns the property. Ask for the title deed to confirm the seller has a clear and marketable title. This document should be in the seller’s name and free from any disputes. You may consult a property lawyer to help verify this for added security.

2. Check for Encumbrances

Ensure that the property is not mortgaged or under any legal burden. You can get an Encumbrance Certificate from the local sub-registrar’s office to verify if the property is free from financial or legal liabilities like loans or pending litigation.

3. Property Age and Condition

Resale properties often show signs of wear and tear. Inspect the physical condition of the home — including walls, flooring, plumbing, electrical wiring, and the structure. If possible, hire a professional inspector to identify hidden damages or major repair needs.

4. Outstanding Dues

Check if the seller has paid all dues related to:

Property tax
Water and electricity bills
Society maintenance charges
Any other local municipal dues

Request the seller to provide no-dues certificates from the housing society and local utility services.

5. Approved Building Plans

Ask for the original approved building plan from the municipal authorities. This ensures that the construction is legal and in line with government regulations. Any unauthorized construction might lead to penalties or even demolition.

6. Occupation Certificate (OC)

If the property is part of a housing complex, ask for the Occupation Certificate issued by the local authority. This certifies that the building was constructed following approved plans and is ready for occupancy.

7. Property Tax Receipts

Ensure the seller has paid property taxes regularly. Request recent tax receipts as proof. Delays in property tax payment may lead to penalties and unnecessary hassle after ownership transfer.

8. Society Rules and NOC

If the property is part of a residential society or apartment complex, get a No Objection Certificate (NOC) from the society. Also, understand their rules regarding transfer charges, maintenance fees, and other conditions.

9. Valuation and Market Price

Before making an offer, get the property professionally valued. This helps you understand if the quoted price matches current market rates. It also helps during home loan processing, as banks do their own valuation before sanctioning a loan.

10. Loan Eligibility and Home Loan Approval

If you’re planning to take a home loan, confirm whether the property is eligible for financing from banks. Some properties, especially very old ones or those with incomplete documents, may not qualify for a loan. Banks will also require a legal check and valuation of the property.

11. Registration Documents

Finally, ensure the property is registered in your name after purchase. Both buyer and seller should be present at the local sub-registrar office for the registration process, along with necessary documents and stamp duty payment.

Final Thoughts

Buying a resale property requires careful due diligence, especially because it involves pre-owned homes with history. While the process may seem more complex than buying a new flat, doing your homework thoroughly can save you from financial losses and future legal complications.