For a number of people across the world, buying a home is as good as a dream coming true! A house purchased in their name doesn’t just fructify their age-old desire of owning a residential property in their name, but it also brings them a great sense of happiness, stability, comfort and belonging.
However, when it comes to actually purchasing a historic home of your choice, things tend to get a little difficult. You are required to arrange for mortgage financing, fill out detailed documents and undergo complex banking procedures. This is why, in such times, people prefer to avail a home loan instead of going for other, alternate modes of financing. Not only is it easy to apply for home loan offline or online, but it is also possible to use them as an instrument of incurring consistent tax benefits!
Nevertheless, before you buy a house, there are a few other things that you must always bear in mind. These are:
1. Check Title Documents
The title documents of the property you intend to buy largely include leaseholds, freeholds, developmental rights, construction permits, occupancy certificates and other, similar revenue records. Check these documents pertaining to at least 20 years and verify them from the local registrar office.
2. Assess Regulatory Compliance
All housing properties and development projects in India, fall under the overwhelming umbrella of the Real-estate regulatory authority (RERA). Before purchasing a house, make sure that your seller has registered the property with RERA and all compliance standards for the same, have been strictly followed.
3. Examine Hidden Costs
If you decide to apply for home loan, ensure that you check the pricing of this loan in detail. Sometimes, hidden costs like processing fees, pre-payment fees, conversion fees, document retrieval charges, legal fees or administrative charges are levied, which can significantly increase your home loan EMI.
4. Tax Payment Status
While buyers can use the payments incurred against home loans to claim deductions under Section 24 of the Income tax act, the same does not hold true for sellers. So, ascertain that sellers have fulfilled all their tax obligations, especially to the local councils, before handing over the house to you.
5. Land Conversion Laws
When it comes to land conversion details, every state tends to enact a different law. In some states, conversion of agricultural land for residential use is prohibited, but in some other states, such conversion is permitted with certain riders. Make sure that you check each law before buying your historic home. By checking up the aforementioned details, you won’t just be able to purchase your dream property without any glitch, but you would also become aware of the laws, rules and regulations which govern the current housing & property sector. As a result, your decision to buy the home that you have always longed for would become smart, cost-effective and much more efficient & productive.