Buying a Resale Flat? Check These 10 Documents

Buying any property, especially for the middle class, requires a proper plan of action, given the accumulation of life savings for this once-in-a-lifetime transaction, whether it involves a developer, sole individual, or using one’s resources (land). Thus whatever may be the medium, it does require a lot of paperwork and documentation. 

Though not as prevalent today, many buyers prefer to buy a flat via resale, given its affordability and familiarity features. A resale flat is a transaction between the original buyer of the property and the potential buyer who wishes to claim possession with consent and proper legalities. 

There are a lot of benefits that one could avail in the resale market, some of them being the following.

• Better affordability when compared to newly constructed flats
• Trusted locality and neighbourhood
• Ready-to-move-in options are readily available 
• Pre-loaded amenities present 
• Tax benefits on home loan

Nonetheless, there is a certain amount of drawbacks involved too.

• If not up to the mark, construction quality would require additional repair charges
• Out-of-date amenities, not offering the latest technology and features
• Remodeling the house as per one’s likes and preferences becomes a complex process
• Home insurance could serve as a formidable challenge in the case of an old building
• Difficulty in mixing in with the already-residing residents

Therefore, before buying a flat, primarily through resale, it’s necessary to consider the following factors.

• Estimating the valuation of the property
• The locality and surroundings
• The entire cost structure
• Renting out potential/future resale value
• Ensuring necessary documentation in order

Buying a resale flat involves the participation of at least two parties, with the agreement involving considerable paperwork, making it necessary to ensure the documentation is in order.

Below is a list of documents deemed necessary while buying a resale flat. Check these 10 documents.

1. Title Report

Visit the Registrar’s office and thoroughly check the flat owner’s details, including name, tax rate, joint encumbrances, property taxes, and if mortgages and liens are associated.

2. Obtain NOC From the Bank

Before entering the agreement, one of the essential documents includes checking if there are no dues available to be paid and if the flat isn’t mortgaged against a loan. Obtaining a new dues certificate from the bank provides great relief to the potential buyer.

3. Completion and Occupation Certificates (CC and OC)

The CC and OC of the previous owner assure the legalities associated with the construction of the flat. The municipal authorities issue the CC, while the local government provides the OC.

4. Tax Receipts (latest)

The potential buyer's right to request the latest tax receipts to ensure the seller has been paying his taxes and hasn’t defaulted.

5. Encumbrance Certificate 

Be sure to check the encumbrance certificate, which proves there are no financial dues or any legal issues pending, with the property title being clear and marketable.

6. No Dues Certificate From the Society 

While buying a flat in a residential co-operative housing society, obtain the No Dues Certificate, serving as proof that the seller has abided by all the rules and regulations and has no pending dues.

7. Title Deed

The title deed is the property ownership transfer from the seller to the buyer. The document will contain the information of the seller, housing loan details, if any, and other relevant information.  

8. Sale Deed

Registered under the sub registrar’s office, the sale deed serves as the most crucial document for ownership and future property sale. It’s essential to procure this document when the seller transfers the title in the buyer’s name.

9. Possession Certificate 

Once possession of the flat, the seller must provide the current owner with the possession certificate, given to whoever was the first owner of the flat by the builder.

10. Share Certificate 

Issued by the co-operative housing society, the document states that the seller of the flat is the rightful owner of shares in the society.

The above ten steps ensure a smooth implementation in the entire transfer of ownership process in the case of a resale flat and will prove to be beneficial in your home-buying journey by saving time, money, and resources.