Buying An Old Apartment? These Tips Are For You
At a location, where there are very few property options to choose from, many homebuyers end up investing in an old apartment (a decade old or more). Such apartments do pose a challenge for the homebuyers. While the property might be in good condition and value for money, homebuyers should perform the legal and technical verification of the property before signing the dotted line.
MakaaniQ shares few tips for buyers who are investing in old flats:
- Check all the documents carefully before signing the sale deed and ensure that the seller is the actual owner of the property.
- The title of the resale property should be clear. Obtain the purchase agreement, the sale deed, a No-Objection Certificate from the society, copy of the builder-buyer agreement and the encumbrance certificate. All ask for documents to establish the chain of ownership.
- Ensure there are no dues on the property from water, electricity, property tax department. Buyers can check maintenance, electricity, and water from the society office or the builder, check for pending tax bills from the revenue department.
- Check the financial history of the apartment. Know if the apartment was mortgaged to the bank. Obtain NOC from the bank. Also, make sure the cash component demanded by the seller is within the permissible limit.
- Banks provide home loans for old properties, subject to technical and legal verification. Usually, lenders factor in the age of construction, depreciation value and documentation. Banks usually are not willing to lend more than the amount mentioned in the sale deed. Hence, buyer has to arrange for registration and stamp duty from a personal fund.
- Check with the society about the additional charges that you might have to pay. This includes maintenance charges, usage charges for amenities or society electricity charges, etc.
- Buyers should also look for structural damages that have to be repaired at later stages. This includes water pipes, wiring, cracks, damps, moisture, clogged drains, seepage etc. If you are planning to run heavy wattage appliances, check the age and quality of wiring. Painting, water-proofing and structural repair cost should be factored in before buying an old property.
- If you are buying a home in an old building in an old locality, ventilation and lighting can be a challenge if you are buying on lower floors or if there are high rises around the structure. Opt for top floors for better view and ventilation as the chances of dampness and leakage are minimum.