Buying an old apartment in India checklist


Buying an old apartment in India checklist, when did the concept of apartments come in India, and what is the average height of the apartment

Buying a resale property often comes with unknown challenges, such as higher cash down payment (in comparison to purchasing an under-construction unit from a developer); dealing with some mandatory expenses, such as registration fees, transfer fees, stamp charges, and other charges; and unpaid dues by the previous owner, among others.

So, to be prepared here are the top necessary things to watch out for when purchasing an old apartment in India

1.) Present owners

Check whether the property is owned jointly or individually. If you have joint ownership, make sure that everyone agrees on the property sale. Check to see if the vendor is the rightful owner of the property. Obtaining original sales deeds and paperwork that shows the property’s chain of ownership dating back to its construction is essential. All previous owners’ sales deeds must be properly registered and stamped. There should be no encumbrances on the property and a clear marketable title.

2.) Builder’s reputation and overall brand

It is critical to review the builder’s biography and overall history before purchasing a property. How many projects has he completed so far? How long was the wait? Check out the builder’s website to see previous and continuing projects. If you search the internet for the prior project’s name, you should be able to get some useful information. Check out what others are saying about the builder and the property.

3.) Contractor inspection

If you’re buying an old piece of property or even a new home, get it evaluated by an independent contractor or an architect. The contractor is an experienced individual who can ensure the building quality of the property, if it is a house, by inspecting it.

4.) Budget

Purchase a home that you can afford and don’t go overboard. Be aware of any hidden or additional charges while renting a condo or apartment.

5.) Rental Possibilities

People frequently rent out their homes and relocate to another location. You will later regret your decision if you discover that the property is not particularly appealing from a rental standpoint. I’m not suggesting that this will be a deciding element in your selection, but keep it in mind and look at properties from this perspective solely. If your property is near colleges, is centrally placed, or is adjacent to business areas, you will never have trouble getting tenants.

 6.)Social infrastructure

Before buying a property, check the nearby educational institutions, hospitals, and shopping centers. Pay attention to details like how far are the nearest police station, fire station, parks, and playgrounds.

7.) Consult your neighbors.

There could be many details about the property that are only known by neighbors and are not revealed by the seller. There may be certain conflicts, disagreements, or other issues that you will learn about only after speaking with your neighbors.

Important documents to check before buying an old apartment in India

From the buyer’s standpoint, purchasing a resale flat is a good investment. What could be a better offer than owning a flat at a lower price than the market rate? Furthermore, purchasing a resale apartment allows you to save money on house rent. Instead, you can put the money toward your house loan EMIs if you bought a resale unit with a home loan. You can also move into the flat right away after purchasing it, rather than waiting months or years.

So, the necessary documents needed are:

1.) Title deed

It will ensure that the property is registered in the name of the seller. It will also assist you in obtaining loan information and other documentation of property ownership.

2.) Certificate of Completion/Occupancy

Once the property is built in line with the government’s approved plan, the local authorities issue a Completion Certificate. The occupancy certificate, on the other hand, is issued by the developer or builder and can only be issued once the completion certificate has been issued.

3.) Receipts of payments

When purchasing a house in Kolkata, make sure you gather and keep all payment receipts from the real estate business. You will be needed to bring a copy of the seller’s receipts to the bank. The receipts are proof of your payment to the developer.

4.) Utility Bills 

 Examining utility bills, such as water, electricity, and gas bills is a crucial component of the property verification process. It will tell you if all of your payments have been paid on time or if there are any outstanding invoices. You should also double-check that the seller’s bills against the unit are in the name of the owner.

5.) Encumbrance

If the seller is a firm, searches at the jurisdictional sub-registrar office or the Ministry of Corporate Affairs’ official online portal will reveal any registered encumbrances on the property. For example, you can look up encumbrance information on properties in Maharashtra by contacting the Maharashtra Department of Stamps and Registration. To be safe, the buyer may publish a public notice in newspapers prior to closing the sale, requesting claims from any interested third parties.

6.) Certificate of Possession

This is a vital certificate to have when purchasing a privately built resale apartment. This certificate is issued by the builder and given to the first owner once he or she physically takes ownership of the property. When the property is physically occupied, this is transferred to the next owner.

Check Utility Bills, Latest Tax Paid Receipt, No Objection Certificate (NOC) from the competent authorities, No Dues Certificate from Society, and Share Certificate in addition to these documents.

7.) Sale Deed

The Sale Deed is a document that serves as the primary proof of ownership for the future sale of a property. Following the acquisition of the unit, it must be registered with the Registrar’s office. It is the most crucial document you must obtain once the seller transfers the title of the flat to you in the form of a Title Deed. Before signing this important legal document, make sure you read all of the terms and conditions.

How to determine the value of an old flat?

The following is the formula for determining the value of a resale apartment:

The worth of a resale flat is calculated as follows: UDS+ Depreciated value of the building and facilities + Value of overheads, expenses, and promoter’s profit.

Building and amenities depreciated value: To calculate this, you’ll need to know the cost of construction per square foot. This, too, is dependent on the quality of the building. You may look for the “cost of building per square foot in India” on Google. As of now, you may expect to pay between $1200 and $1500 per square foot. The value is calculated by multiplying the area (super built-up area) by the cost of construction per square foot. The depreciation value must then be calculated. To do so, we assume the property would last 60 years and will be worth roughly 10% of its original value in the end.

Cost per square foot multiplied by UDS equals the value of an undivided part of land. You can use the cost per square foot guideline value. In actuality, in the Indian setting, the guideline value is typically excessively low, and the market value is typically 1.5-2 times the guideline value. You can examine market rates listed on property websites such as Sulekha or Magic bricks to get a sense of the market price of land in the area you’re interested in.

Overheads, incidental expenses, and promoter’s profit: According to the article above, this accounts for roughly 40% of the building cost.

As a result, the property’s value is the total of these three.

When did the concept of apartments come to India?

Unlike these “apartments,” which were merely personal chambers within enormous mansions, the modern apartment house first developed in Paris and other major European cities in the 18th century, when tall blocks of flats for middle-class renters began to arise.

To distinguish them from tenements, these early apartments were modeled like Parisian residences and referred to as “French flats.” The 1869 Stuyvesant Apartments on East Eighteenth Street in Manhattan, constructed by Paris-trained American architect Richard Morris Hunt, were one of the first.

When did people first begin to use apartments?

Unlike these “apartments,” which were merely personal chambers within enormous mansions, the modern apartment house first developed in Paris and other major European cities in the 18th century, when tall blocks of flats for middle-class renters began to arise.

When was India’s first apartment constructed?

The Paresh Apartments Cooperative Housing Society recruited them as contractors, and they developed the city’s first apartment complex in 1974, which still exists in Malleswaram today.

What is the average height of an apartment?

A common apartment ceiling height is 8 feet, however, newer construction (constructed after 1995) can have ceiling heights of 8.5 to 9 feet or more. Ceiling heights of 14 feet or more are common in historical buildings(pre-1940s) that have been converted into apartments (such as an old warehouse or school).

How tall is each floor in an apartment?

The height of each story building is determined by ceiling height, floor thickness, and construction material, with a general average of 14 feet.

Average and minimum ceiling height in a house

Building regulations do not specify a minimum room height, although there are guidelines for stairwells and access. It also does address protection from falling, collision, and impact,’ and recommends that the head height for landings and steps be at least 2 meters.

FAQS

Is it ok to purchase an old flat in India?

Nothing can be more advantageous than buying a flat for a fraction of the market price. Furthermore, the resale flats are fully constructed and ready to move into. One of the most significant advantages of resale apartments is the tax benefit that follows possession.

Who came up with the idea of apartments?

Wealthy New Yorkers began purchasing luxurious “cooperative” flats, a notion first popularized by New Yorker Philip G. Hubert in the early 1880s as “home clubs.” New York also had the first combination loft living spaces for artists, known as “studio apartments.”

What is the average residential building height?

In a residential building, the floor-to-floor height is usually 7.5 feet. Commercial structures, on the other hand, have a maximum story height of 10 feet [38]. (See Fig.2). The residential structure has four stories, while the commercial structure has three.

Conclusion


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