Friday, July 1, 2011

Flat/Apartment Resale - Second hand

People call it in different ways, second-hand flat, flat resale, apartment resale etc etc How does one go about scrutinising the title deed records while acquiring a second-hand flat? Here is a checklist which should be verified before proceeding with buying a resale flat or apartment.

You can get a list of second hand flats or aparment in

1. The flow of title as I have described in these columns.

2. If the flow of title is in order, then, you need to check if your present vendor has the following: a. Registered Sale Deed in respect of undivided share in the land b. Construction Agreement (or sometimes called Builders Agreement) under which the flat is constructed.
3. If the flat is assessed to property tax and if property tax is paid up to date.
4. For a completion certificate from CMDA.
5. For a CMDA-approved plan. Check for deviations.
6. If there are deviations, see what has been done. In most cases, you will be given a copy of an application for regularisation together with a receipt to show payment of fees to the CMDA. This will not do. There have been several regularisation schemes promoted by the Government. Barring the first, all the others have been stayed by the High Court, and the CMDA is currently restrained from processing any regularisation applications. There is no certainty whatsoever that the courts will hold these subsequent regularisation schemes to be valid. If they are held to be invalid, your dream flat could quickly be turned into a pile of rubble.
7. The nature of the deviation. If the deviation is total, or if your proposed flat is on an unauthorised floor, then, I can only recommend that you drop the idea. Of course, if you are the type of person who doesn't mind risky transactions, it is your choice and you are free to do so.
8. Scrutinise the originals of all documents. They will normally be with the Flat Owners' Association. Check the Bye Laws of the Association and see if your vendor has any dues to the Association. 9. If the flat has proper electricity, water and sewerage connections. Check to ensure that all these utilities are paid up to date.
10. Check to ensure that the flat has rainwater harvesting mechanisms in place.
11. Ensure that the flat promoter retains no residual interest over common areas, terrace, and so on.
You will have noted that the most serious concern spelt out above is with regard to deviations and regularisation.
If you have very serious doubts or desire any clarifications, you can always approach the officials at CMDA.


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