Listed below are some of the things that have to be kept in mind while purchasing a residential property:
1. Locality: Proximity to transport hubs, schools, hospitals, market, central business district, entertainment centres, hotels, restaurants, pollution levels, safety records of the neighbourhood.
2. Total area of the property i.e. Carpet + Built Up Area + Super Built Up Area.
3. Adequate car parking space.
4. Construction should be of a high quality.
5. Reputation of the builder or seller. Check around with local sources to find out more of the builders reputation.
6. Adequate water, electricity and other utilities should be an important factor.
7. Get a good idea of the costs of various components like price, stamp duty, registration charges, transfer fees, monthly outgoings, society charges & costs of utilities.
8. Assess the potential resale value or the potential rental income of the property.
9. List out any other advantages and disadvantages of the property to help make a better decision.
Q: What is the difference between carpet area, built-up and super built-up area?
The area of an apartment or building that is actually used and in which a carpet can be laid. Carpet area + Area of the balcony + area of the walls are known as built-up area. The super built up area includes the built-up area + common spaces like lobby, lifts, stairs, garden and swimming pool.
Q: What are the benefits of knowing the Carpet Area, Built-Up Area & Super Built-Up Area of the residential property?
When buying an apartment or any residential property, the builder usually charges on a square feet basis. By knowing the break-up of the square feet, the price of the property can vary quite considerably. For ex. If the builder is quoting Rs. 2000 / sq ft of built up area. The carpet area usually varies between 65% - 85% of this. Hence for a 2000 sq ft super built up property the carpet area could be anywhere between 1300 – 1700 sft. Which means the price could vary between Rs. 26 lacs – 34 lacs.
Ensure that this break up is mentioned in your agreement.
Q: Is inspection of the property a necessity before buying it?
Yes. One of the largest investments done by a person is with respect to the purchase of a residential property either for personal use or as an investment. Hence it is very important that the property is inspected thoroughly. This could save you costly maintenance bills at a later stage.
Some of the areas to be looked into with more closely are:
- Plumbing systems, drainage, water faucets and sanitary fittings.
- Electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of light fittings.
- Roof, walls, ceilings, floors, paint work.
- Foundation, basement and visible structures.
- Doors and windows, latches, locks.
- Structural stability of the building.
Q: Is there a checklist to be followed while buying residential or commercial property?
Since your hard earned money is at stake, it is advisable the following checklist is followed:
1. It is advisable that the potential buyer studies the market for the market trends about prevalent rates of property in the vicinity and last known transactions.
2. Ask for photocopies of all deeds of title related to the property to be purchased. A legal opinion through a good standing advocate is advisable. The legal counsel will examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property. The title of the Vendor to the property must be clear and marketable.
3. One of the major issues with a number of properties is the deviation of the built plan from that of the approved plan. Check for approved layout plan and approved building plan with number of floors and square footage approved against what is built in the property.
4. Clearances from the following authorities is good to have: Muncipality, Electricity, Water, Pollution, Lift Authorities, Fire, and ensure the property has been issued Occupancy Certificates.
5. Check the building bye-laws in that area to verify any infringements with respect to setback, side setback, height, square footage etc.
6. To get a good idea of the total purchase price, confirm transfer fees, stamp duty and registration charges to be paid on purchase of the property as well as other outgoings to be paid for the property i.e. property tax, water and electricity charges, society charges, maintenance charges
7. After payment of the entire sale price, take over legal possession of the property along with documents of title in original from the Vendor of the property
8. Change name of the holder of the property to the purchaser in the records of the society, Electricity Company, municipal corporation, Index II etc.
Q: What is a Sale Deed?
The sale deed assists gives the buyer the absolute and undisputed ownership of the property in question. The Sale Deed is also known as conveyance deed. By executing this document the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.
Q: What is Khata?
A Khata is a document that includes complete details of the land or property in question. Details such as size, location, built up area and so on for the purpose of payment of property tax. It also identifies the name of the owner on record for such property and as to who is primarily liable for payment of property tax. There are numerous uses for this document, amongst them are:
- While applying for a building licence, trade licence or loan from banks or any other financial institutions.
- It is also required document while paying property tax which is mandatory for all properties.
Q: Is Khata the same as title deed?
No. A Khata is a document that includes complete details of the land or property in question. A khata is an account of assessment of a property for the payment of tax. The title document is that document that gives the ownership of the said property to the buyer.