Buying a house in India involves several steps, from researching properties to finalizing the sale and transferring ownership. Here’s a step-by-step guide to help you understand the process:
1. Set a Budget
- Evaluate your financial situation to determine how much you can afford.
- Factor in the down payment, loan eligibility (if needed), and additional costs like registration, stamp duty, etc.
2. Research Locations
- Identify the location based on factors like proximity to work, public transport, amenities, and overall infrastructure.
- Consider the future growth potential of the area.
3. Choose the Type of Property
- Decide whether you want a new property (under construction or ready-to-move-in) or a resale property.
- Verify the type of ownership – freehold or leasehold.
4. Arrange Financing
- If you’re planning to take a loan, get pre-approved by a bank or financial institution to understand the loan amount, interest rates, and tenure.
- Compare different lenders’ terms and conditions.
5. Shortlist Properties
- Visit various properties that match your criteria (budget, location, amenities).
- Check legal titles, the builder’s reputation (if applicable), and property approvals.
6. Legal Verification
- For resale properties, ensure that the title deed is clear and there are no legal disputes. Verify ownership history and outstanding dues.
- For new properties, ensure that the project has necessary approvals (e.g., from the local development authority, RERA registration).
7. Make an Offer
- Negotiate the price with the seller or developer.
- Agree on the final price and terms of the sale (payment schedule, possession date, etc.).
8. Agreement of Sale
- Sign an Agreement of Sale (or Sale Deed) with the seller. This document should outline the agreed terms, including the price, payment terms, and possession date.
- Pay the advance amount (usually 10-20% of the property price) upon signing the agreement.
9. Complete Payment
- Pay the agreed amount, either through your own funds or via a home loan. Ensure the payment schedule is followed and documented.
- Make sure to get receipts for every payment made.
10. Due Diligence (Stamp Duty & Registration)
- Pay stamp duty, which is a percentage of the property price, to validate the agreement.
- Both parties must sign the Sale Deed in front of a notary or at the local sub-registrar office.
- Register the Sale Deed with the appropriate authorities to transfer the legal title of the property.
11. Possession of the Property
- After registration, the seller hands over possession of the property to you.
- Ensure that all necessary documents (like the occupancy certificate, NOC from the builder if applicable, etc.) are handed over as well.
12. Handover and Final Settlement
- Conduct a final inspection of the property.
- Ensure all utilities (water, electricity, etc.) are in your name.
13. Post-Purchase Formalities
- Apply for a mutation of the property in your name at the local municipal office.
- Update property records to reflect your ownership for future tax purposes.
By carefully following these steps, you can ensure a smooth and legally sound property transaction in India.