Considering the fact that buying property is a long process and takes months to finalize a property, we share some of the steps that you must take while buying a property. As we have discussed few steps in the previous post, we shall now know the remaining steps that you must never miss while buying a property:
3. Better Understanding of your payment plan: Depending upon the builder and the type of property you are buying, you must know the payment plans you would be opting for. Typical plans are of 3 types:
a) Construction linked: You pay based on the progress of the construction of the property. This can be safest because you pay for progress and need to spend money along with the level of completion of the construction process.
b) Time linked: You pay according to a set timetable, whether the construction is under process or on the verge of completion.
c) Down payment: You pay for the property up front, but then are exposed to the risk of delays and whether the property will get completed at all or not.
4. Applying for a loan approval: If you need to apply for a loan for property purchase, then it is advisable to simultaneously start the application process with potential lenders, along with the above steps. This can help you know more about the loan that you can apply for and the terms of getting the loan. You can also get a pre-approval for a loan in case you have not selected a property as yet, but want to save time later when you have zeroed in on a property.
5. Allotment letter: This is allotted by the builder once you book a flat in an under construction property. This allotment letter includes the details (like flat number, area, price) of the flat that has been allotted to you, the payment details, any extra charges levied to you amenities such as car parking, club membership, and maintenance charges to be levied at the time of possession and occupancy.
6. Sale agreement: This agreement is made once you agree to all the terms and conditions of the sale with the seller in case you are buying a pre-existing property.
7. Possession and Registration: The final step in the buying process is the possession of the property being transferred to you and your responsibility to get it registered in your name. At the time of registration you will also have to pay a stamp duty which is a government tax levied on property transactions.