Buying a house is the real dream for almost 99% of the citizen. either it be a flat or independant house or bunglow or villa or anything, everyone has thought of buying one out of his hard earned money :) and this post is for those who want to buy it for the first time (ofcourse in India).
Step 1: Pre-approved loan - If you have enough money to buy house, then you can skip this step. otherwise go to an reputed housing finance company and submit your documents for a pre-approval of house loan. This way you not only get to know your eligibility, but you also get an option for legal opinion for unlimited property. Many banks / housing finance institutions charge 0.5% to 1% of the loan amount as processing charge. ofcourse I bargained for a fixed sum of Rs.10,000+service tax. Once you get a preapproved loan, it is valid for 1yr and if you dont find a house within a year, you can renew the approval for another 6months with a minimal service charge.
Step 2: Property Search - If you want to buy an
Apartment, you can visit reputed builder and check if they have any tieup with banks or housing finance institutions, so you can avail loan from them.
Individual house, then check for the below documents like, Encumbrance Certificate (EC), Sale Deed, Parent Sale Deed, Approval from CMDA/MMDA/DTCP etc, Corporation Tax book, Electricity book, patta, chitta, plan approval, water tax book from the seller
Approved Plot, then check for EC, Approval from CMDA/MMDA/DTCP , Sale deed for purchase of the land, Plan layout, layout should have ample public space provided for library, school, playground, park, road, community hall
Finally check if government has any proposed project coming in that area like railway line, road extension, overbridge etc which could affect the propety
Step 3: Price fix - Go to the neighbouring places and enquire about the prevailing prices and come to an average price of that area. If you have survey number, you can go to www.tnreginet.net/igr/guideline_value.htm and get the current guideline value of the land. Ofcourse actual market rate is almost double or triple the guideline value. If you have old building less than 30yrs, then calculate Rs.500 per sq.ft. of the total built up area, if new building calculate Rs.1200 per sq.ft of the built up area. Doing all these will give you an approximate rate for which you can buy that property. Bargain with the seller and fix the price
Step 4: Document verification - Get a photocopy of all the above said documents and submit it to the bank for legal advice and how much they can offer you for the property. Banks do a legal opinion and technical verification on the property and advice you to get any missing documents.
Step 5: Sale Agreement - prepare a sale agreement for 10% of the actual amount, pay the 10% amount in DD to the seller and get the sale agreement signed in all pages.
Step 6: Loan Approval - Submit the sale agreement in the bank and get the your loan approval for the remaining amount, which bank will provide a DD on the date of registration at sub-registrar office.
Step 7: Sale Deed - Get hold of a document writer and prepare the sale deed, and a quotation from them on how much stamp paper to be brought, how much registration fees to be paid, on whose name DD has to be taken.
Step 8: Registration - Once everything is ready, you can register your property
Ofcourse all these require personal experience when you go directly. This post is just to know the process and get a feel of it, because something is better than nothing, so get to know little about the process and then start with this. This is purely from my experience of buying a house :) there could be many other challenges coming on the way, ofcourse life is full of challenges.