Must Know Before Buying a Property: Buying a house is a crucial decision for people in India, as investing in real estate and property is considered a luxury. Investing in a house can mean giving up life savings or being burdened with hefty home loans. Therefore, it’s essential to have a checklist of things to consider before buying a property to avoid getting deceived and losing hard-earned money. Here are the things to consider before buying a house in India:
Must Know Before Buying a Property
The first step is to determine your budget and avoid exceeding your capacity to avoid any financial crisis in the future. Shortlist properties that match your budget and look into essential factors such as power and water supply, infrastructure, and the seller’s goodwill.
Home Loan Eligibility:
Before financing a loan, check your eligibility for a home loan. Your credit score, repayment capacity, existing loans, income, and age determine your eligibility. Use the home loan calculator provided by financing agencies to check your eligibility. Also, ensure that the builder’s reputation and goodwill are satisfactory for the financing agencies.
Verification of Documents:
It is not recommended to rely on brokers to verify the property documents. Verify the property documents yourself and conduct the necessary due diligence to verify the title documents, such as government orders for grants, gift deeds, sale deeds, succession certificates, etc. Understanding the nature of the title is crucial.
Background Check of the Seller:
Verify the authenticity of the seller and their identity before buying a property. Check whether the seller has government authorization to sell the property. For joint property, identify all the owners involved and confirm their authority to own and transfer the property. Verify all the documents that ascertain the seller’s identity, such as Aadhar Card, PAN details, Income Tax returns, etc.
Type of Land
Being aware of the type of Land is also crucial. Be aware of the land use pattern and state laws that prohibit the purchase of agricultural property by non-agriculturists. Ensure that the property is being developed per the zoning plan and the master plan of the project.
RERA Compliance is equally important. Only engage with projects that are registered under RERA and ensure that all essential provisions under RERA are adhered to. Verify the developer’s and real estate broker’s RERA registration number before appointing them.
Property Insurance is indispensable. It will cover your expenses in case of any damage or loss and protect you from any third-party liability arising from any injury faced by such a third party on your property. Home insurance minimizes the financial burden in such cases. Ideal home insurance will also apply to the contents of your property, which includes: electronic appliances, furniture, and even jewelry. You can claim such insurance even if there is any theft or robbery. Therefore, insuring your property provides economic protection and covers potential risks.
These are just a few basic due diligence methods. As a buyer, conduct an elaborate due diligence process to ensure that your investment is viable.