Can anyone explain in detail the process of buying a resale flat. What is the role of the lawyer, at what stage should he be engaged, documents required from seller etc
Read more
Reply
20 Replies
Sort by :Filter by :
  • You need following main Document from Flat Owner :

    1. Copy of Flat Purchase Agreement between owner and Builder.
    2. Statement and NOC of Home loan if any.
    3. NOC from Society if formed else NOC from Builder.
    4. Electric Bill and Property Tax bill.
    5. Serach and Title report of proerty which will done by lawyer.

    Aprt from that you can contact banker who provide home loan to you. they will verify all the document related to that property.
    CommentQuote
  • - Is NOC required from builder if the seller has already got the possession letter? (society is not formed yet)
    - The electricity meter would be in the sellers name. How much approx would it take to get it transferred to buyers name. What if electricity bill has not started coming yet
    - Again what if property tax has not been paid yet?
    CommentQuote
  • What if the owner of the flat has used the flat as collateral (only if the flat was purchased without a loan ) ?????

    Also is the process mentioned in the above post complete and thourough ?
    CommentQuote
  • After buying a resale flat what is the procedure to transfer the electricity meter to ones own name and how much does this cost? Should this charge be borne by the buyer or the seller? What documents will be required from the seller for this change?

    Similar question on transfer in case of pipe gas connection too.
    CommentQuote
  • FOR RESALE FLAT TO CHECK ( DOCUMENTS )
    1. Original Share Certificate.
    2. Original Agreement with Stamp Duty paid as per market value.
    3. Society’s N.O.C.
    4. Transfer charges to be confirmed.
    5. If Broker, brokerage should be confirmed.
    6. If Advocate, fees should be confirmed.
    7. Stamp Duty will be as per the Agreement Value or Market value whichever is higher (As per Government Market Value Reckoner).
    8. Registration is necessary.
    9. Possession Letter at the time of full and final payment.
    10. Please Note: Stamp Duty was applicable only after 10th December 1985.
    11. Society Maintainance Paid Bill, MTNL Bill, Electric Bill.

    CommentQuote
  • Hi All,
    I am looking forward to buy a property(under construction) on resale. The owner has some outstanding dues with the builder and wants me to close them before the transfer. The builder will take few days to give NOC after me clearing the dues and then the transfer will happen.
    I am worried a bit whether this is the right way(as I will end up paying a good amount of sum without any solid mortgage in return). Please suggest me the best way as soon as possible.
    CommentQuote
  • Hi All,

    i bought a flat which i am now planning to sell. I have some confusion as to the amount of money i will be receiving.

    The details are as follows:

    1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
    2. Cost under CLP Plan --- 25 lakhs approx
    3. Payments Made till Date ---17 lakhs

    Rate being Offered 2700psf

    2700*850 = 2295000
    Other costs+ Parking = 240psf + 1.5 lakhs = 354000

    Total Selling Cost = 2295000+354000 = 2649000

    Total Profit = 2649000- 2500000 = 149000

    I took a loan and pay a monthly EMI of 10000 approxy (for last 1 year or so).

    So if i deduct Broker commission and EMI from the Total Profit then it looks i will not be making any profit in this sale.

    Can somebody shed some light on this????
    CommentQuote
  • Originally Posted by confusedUser
    1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
    2. Cost under CLP Plan --- 25 lakhs approx
    3. Payments Made till Date ---17 lakhs

    Total Profit = 2649000- 2500000 = 149000



    As you have paid 17,00,000 only and not 25,00,000, should the difference of these 8 lakhs be considered in the calculation above?
    CommentQuote
  • Nice apt name!

    Originally Posted by confusedUser
    Hi All,

    i bought a flat which i am now planning to sell. I have some confusion as to the amount of money i will be receiving.

    The details are as follows:

    1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
    2. Cost under CLP Plan --- 25 lakhs approx
    3. Payments Made till Date ---17 lakhs

    Rate being Offered 2700psf

    2700*850 = 2295000
    Other costs+ Parking = 240psf + 1.5 lakhs = 354000

    Total Selling Cost = 2295000+354000 = 2649000

    Total Profit = 2649000- 2500000 = 149000

    I took a loan and pay a monthly EMI of 10000 approxy (for last 1 year or so).

    So if i deduct Broker commission and EMI from the Total Profit then it looks i will not be making any profit in this sale.

    Can somebody shed some light on this????
    CommentQuote
  • Originally Posted by confusedUser
    Hi All,

    i bought a flat which i am now planning to sell. I have some confusion as to the amount of money i will be receiving.

    The details are as follows:

    1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
    2. Cost under CLP Plan --- 25 lakhs approx
    3. Payments Made till Date ---17 lakhs

    Rate being Offered 2700psf

    2700*850 = 2295000
    Other costs+ Parking = 240psf + 1.5 lakhs = 354000

    Total Selling Cost = 2295000+354000 = 2649000

    Total Profit = 2649000- 2500000 = 149000

    I took a loan and pay a monthly EMI of 10000 approxy (for last 1 year or so).

    So if i deduct Broker commission and EMI from the Total Profit then it looks i will not be making any profit in this sale.

    Can somebody shed some light on this????


    Where did the 2500000 in total profit come from? Also, don't forget to add the rent saved/earned + tax benefit to the equation.
    CommentQuote
  • Originally Posted by confusedUser
    Hi All,
    i bought a flat which i am now planning to sell. I have some confusion as to the amount of money i will be receiving.

    The details are as follows:

    1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
    2. Cost under CLP Plan --- 25 lakhs approx
    3. Payments Made till Date ---17 lakhs

    Rate being Offered 2700psf

    2700*850 = 2295000
    Other costs+ Parking = 240psf + 1.5 lakhs = 354000

    Total Selling Cost = 2295000+354000 = 2649000

    Total Profit = 2649000- 2500000 = 149000

    I took a loan and pay a monthly EMI of 10000 approxy (for last 1 year or so).

    So if i deduct Broker commission and EMI from the Total Profit then it looks i will not be making any profit in this sale.

    Can somebody shed some light on this????

    Buying base rate=2250/sqft
    Asking base rate=2700/sqft
    Transfer fees to be paid to the Builder for transferring the Flat on the buyers name=X/sqft
    Lets say the transfer fees=75/sqft
    Premium you will get=2700-2250-75 = 375/sqft
    Buyer (or his bank) will give you premium= 375 * 885 = 331875
    Buyer (or his bank) will give you the amount you paid so far = 1700000
    Buyer (or his bank) will have to pay to the builder as per the CLP as agreed originally between you and the builder (which includes the Car parking, other costs, registration cost, ST VAT etc)
    You will pay Builder= 75 * 885 = 66375
    Lets say You pay Broker commission, 30000 (some % of profit)
    Your profit is 331875 - 30000 = 301875
    % = 301875/1700000*100 = 17% (this is total profit, as you didnt tell when you booked flat and what is your CLP so far for this 17L, I cant calculate CAGR)
    This is your profit before adjusting the interest you paid to your Bank so far
    You didnt say how much you took loan from your bank, and how much is the interest rate and what is the tenure, so we cannot calculate how much interest you paid so far, and how much principal amount has already been deducted.
    Lets say you paid 90000 interest so far (as interest part will be more in the initial years)
    and 30000 is paid towards principal so far.
    Your total profit will be 301875 - 90000 = 211875
    % = 12%
    You can close your Loan with this 1700000+ 301875 = 2001875, to repay your loan outstanding, which will be your (Loan amount - 30000 (principal paid so far))
    Rest is yours. Enjoy!
    You made a decent profit, with some lessons learnt!
    CommentQuote
  • Buying a Resale Property - Need Guidance

    Dear Boarders,

    Please help me with things to check for before buying a resale property.

    Suppose the agreed value is 'x' when can the agreement be done in the buyers name.

    If the seller has a loan on the existing property - can I transfer the loan/ should I get a new loan.

    How much money should I pay before the seller can transfer the property.

    Rgds,
    Aplusk
    CommentQuote
  • Pune : Steps to Buy a Resale Property

    Hi All,
    Have gone through previous threads but need some clarity -

    So if I want to buy a resale property -
    1. Check Documents
    2. Pay Token Amount and take receipt
    3. Provide documents to lawyer (original or photocopies, I guess photocopies)
    4. Approach bank and apply for loan (They will need original documents, right ?)
    5. Sale deed

    So when should I pay 20% of my part to owner? (Property is not mortgaged).
    Does lawyer verify original documents or he can work with photocopies.

    How can I find good property lawyer?
    CommentQuote
  • The steps you mentioned are pretty much good.

    Give a small token which is is refundable if the legal advisor tells you not to buy the property.

    Yes, you must have a legal adviser.

    I generally deal with Adv Prasanna Darade in Bhuvneshwar colony, Near Abhimanshree society or Adv Anil Sardesai on Prabhat road. These are suggestions of the names.

    Some people prefer to also give a legal notice in the paper which is a good idea and I would recommend it, just in case there is any problem on the property. Your legal adviser will do this.

    Also make sure the current seller has no outstanding with builder esp the VAT money which was an issue a while back. So also he should have NOC from the society for which he should pay any charges society asks. This we you are eliminating uncertainties.

    Hope this helps. Wish you all the best.
    CommentQuote
  • I think there are few steps missing

    1) Shouldnt there be an agreement for sale done while giving token anount listing conditions for sale, dates and payment procedure
    2) Also you will need to check outstanding dues, society maintenance, property tax pending
    3) Get a no dues certificate from society
    4) Not sure whether a non encumberance certificate is needed.
    5) 20% cheque is handed over along with bank's cheque at registration office during registration. Bank will have its agent come there and will handover. Original documents are handed over at the same time during registration
    After resale there will be some additional steps
    6) Need Share certificate transfer needs to happen (not sure when this is done)
    7) Electricity meter needs to be trasnferred in your name.
    8) Not sure what needs to be done for property tax bills to come in your name in future

    This is my experience based on a sale I did in Bangalore. Not sure if Pune has some additional steps.
    CommentQuote