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Buying a property online ? Here are a few things to watch out for !

Buying a property online ? Here are a few things to watch out for !

The pandemic has truly reshaped the way we do business today, and real estate is no exception to that. It therefore becomes imperative to be absolutely sure of what we are getting into when it comes to buying and selling property virtually !

Home buying is one of the most important purchases that one undertakes in their life partly due to it being a large ticket expenditure. Hence, due diligence becomes a critical component of the process.

Below are some of the key factors that must be considered before buying a property :

  1. Verification of Property Documents
  2. Many times, it can so happen that fraudulent documents are shared while selling a property online. So, be sure to verify the genuineness of the documentation to safeguarded against any misrepresentation or fraud.

    Examine and ensure that you get the following set of documents from the seller while buying a particular property :

    • Title documents – Succession certificate, government order for grant, will, gift deed, sale deed, etc. should be duly stamped and registered with the jurisdiction’s sub-registrar office. Also, make sure that the original title documents are available with the seller.
    • Nature of title – Development, freehold, or leasehold right.
    • In the case of development rights, the development agreement and power of attorney in favor of the seller would be required.
    • Information on past or pending litigation.
    • Khata Certificate to be registered in the seller’s name.
    • The Possession Letter – The Possession letter is a document made by the builder stating the date of the buyers’ possession of the property. This document is made in the builder’s name and is created post the receipt of the Completion Certificate. This letter, however, is not proof of one’s ownership of the property. For that, the home buyer needs to get an Occupancy Certificate.
    • The Completion Certificate -The Completion Certificate (or the Occupancy Certificate) is a document which states that the building has been inspected upon completion and follows all the laws under the municipal corporation or the local development authority. This document is required to avail utilities such as water supply, electricity supply and the drainage system. It is not advisable for first time home buyers to buy a property without the Completion Certificate as without it the building is deemed illegal and can result in a penalty or can even lead to eviction. It is possible, however, for the buyer himself/herself to approach the municipal corporation and ask for a Completion Certificate in case the builder/seller fails to get one.

    It may not be a bad idea to also get a third party lawyer to review the documents. When one takes a Home Loan from Hero Housing Finance, we also undertake a title search from our empaneled lawyers.

  3. Background Check of the Seller
  4. Make sure to do a verification of the seller and the property to be sure of no falsification of the deal.

  5. Inspect the Property Physically
  6. While technology has advanced, thereby enabling online property purchase, it is always best to physically visit the property shortlisted via the online process before making the purchase.

In a Nutshell

Purchasing the perfect property is a lengthy and sometimes cumbersome process. Having said that, owning a house is also a life goal.  Hence, be watchful and make sure to be aware of all facts before closing a deal. In case of online transactions, make sure to use a verified website and payment portal to complete the transaction.

Should you need any financial assistance for buying your dream home, we at Hero Housing Finance are happy to help! For more details on our products, you could refer our website or request a call back from our team! All the best !

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