Owning a home is a priceless decision that brings stability and security to your family, and to make it even more special, it’s important to embark on a hassle-free home buying journey. Searching for a perfect property can be a daunting task, more specifically if the property under consideration is a resale one. Buying a resale property can take 3-4 months to resolve all legal and technical issues. Most importantly, many times, not knowing the person you are buying from can have the major drawback of not being aware of all the responsibilities that resale purchase entails.
To save yourself from any obstacle, you need to make smarter decisions. People often spend their entire life savings buying a home, so the last thing you want to have is a nightmare home experience you’ve always dreamed of. Resale properties have their own set of complications as they need title verification and document verification, mortgage loan closing by the seller, and the process is time consuming. When we begin the search for the perfect home, we always think of making it a hassle-free experience, and for that, it would be best to buy a new property directly from the developer rather than buy a resale one due to the following factors:
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Choosing the right property is only the first step and there are many formalities and formalities that follow, such as title authorization, award letter, sale agreement, NOC, environmental authorization, deed of sale, certificate of incorporation of the company, among others. There is more risk involved in resale property, as it could be in conflict (called bad debt). You will need an attorney to verify all legal and technical documents, this includes property title, land use, approval from municipal authorities, occupational certificate, etc. Generally, hiring an attorney is recommended when purchasing a resale residence that charges anywhere between ₹ 50,000 and ₹ 2,00,000. There is a risk of losing the initial amount of the token and the amount spent on due diligence in the event that the deal does not go through.
You will need to research your mortgage payment history and use a bank NOC to avoid undue problems after your purchase. The resale unit’s old home loan must be foreclosed or transferred to the buyer to execute a deed of sale. In the case of an existing bank loan, the title documents are with the bank and are released only when the loan is executed. This usually takes 2-3 months again, delaying the whole process for you. Post this, to make sure there are no outstanding fees for the unit, a NOC from the developer is also required. There is a high probability that this will delay your purchase due to outstanding builder fees such as maintenance, other charges, etc. A transfer fee (around ₹ 25,000) must also be paid to receive the NOC. So it is wise to go with reputable developers who can take care of the entire documentation process so that you can focus on building a better life without having to worry about delays. Buying a property from the developer guarantees profitability to a reasonable extent. They offer flexible payment options to suit your current financial needs. When there is a resale property, the expectation of making full payment to the property owner is very high but in the case of a developer, the payment options may vary from one individual to another depending on their pocket, which does less stressful. for the buyer. Also, in the case of a resale transaction, the buyer must pay at least 1% brokerage to their broker to purchase a property for resale. If one buys directly from the developer there are no brokerage fees involved, also the developers make the process easier by providing transparency to the transactions. When you buy a new property from the developer, they mostly take responsibility for getting you a spotless new home, eliminating the need for maintenance and all repairs in the first few years. So profitable, right?
- Support to obtain the loan from the developer.
Obtaining a loan becomes a very easy step for those looking for a new property through developers, as they support their clients in obtaining a loan. People looking for resale do not get enough loan options considering it is a resale property. The developers have agreements with the main banks and institutions to obtain mortgage loans at attractive rates and on time. This can be incredibly helpful as easy loans from reputable banks once again assure us that the property has clear titles and required documents. As there are multiple units / owned by a brand developer, the bank is already aware of the project, so no investigation is required by the bank, while in resale property, the owner must go to the bank to get approvals, even if the project is pre-approved by the bank, making it a lengthy process.
- New home with more inventory options
Buying a new home is a dream for everyone and who understands it better than developers with a consumer-centric approach. With the developers, you can get more inventory options, taking into account the view you want, your floor preferences, Vastu, your parking needs, tower location, etc. These properties are much better and convenient compared to homeowners where I don’t have many options.
More importantly, a resale home is all about someone else’s dream and innovation, but a new home is a new dream for you and your family that brings you personal satisfaction that is aligned with your imagination and preferences. Plus, this will give you a hassle-free post-purchase experience so you can live with your family the way you’ve always envisioned.
Disclaimer: This article has been produced on behalf of the Lodha Group by the Times Internet Spotlight team