Buying/Selling a House in Bangalore Procedures/Tips

Buying a home is everyone’s dream. Most of the working community wish to have a house nearby their work place or kids school .

Apartments and raw houses are the two choices and most prefer apartments for Security, community living and reasons may be many.

Apartments sales will start from pre launch.Many investors buy at this time considering market conditions to make maximum return for their investments.

Many people consider to buy apartments when it is ready to move in stage to avoid paying EMIs and Rent together.

There could be two options available one will be Direct buy from builder , other option is a resale from the investor who is ready to sell.

As a common man, people may be not aware of what are the procedures involved and these detail may help them.

Buyer identifies the property based on below points.

1. Location
2. Budget
3. Banks Approved list

When the buyer identifies a potential seller via online portals, brokers etc and after the negotiations they come to private agreement.

Tips: Verify sellers details with the builder. Also ensure whether all the payments are made.

There could be two cases where the property is not registered on seller name.

In this case, seller discuss with builder that he/she is going to sell the apartment. Builder may charge the transfer fee and if any penalty .

Seller and buyer goes for a private agreement which can be done via any vendors available near registrar office. Standard formats are available , this can be done in a stamp paper which can be a value of 100 rupees.

In the private agreement mention the initial amount paid details.

Once the transfer fee and other formalities are completed, details of buyers need to be submitted to the builder , which are PAN,Aadhar,address proof and if any other documents builder asks for.

Builder now makes an assignment agreement/deed which will mention the details of property and the original sale amount details and buyer and sellers details. It will also mention what is the new sale value.

This need to be done in a stamp paper/franking which is 0.1% of the sale value. This can be done in any registrar office , buy making DD from any Bank.

If the buyer is taking the loan, personal details need to be submitted to Bank along with assignment deed copy.

Once the Bank approves the loan, they will ask if the property is ready for registration.

If not, tripartite agreement need to be signed by the builder,seller and buyer.

Franking will be done in the RACPC of the Bank.

Bank will ask tax paid receipts,assignment deed,original sale and construction agreement , NOC from builder in their letter head that documents are not mortgaged , NOC from seller that no loan exist on the property, Minutes of meeting/ signature authority on who signed the assignment deed under their custody.

Bank will ask the sellers details Account number ,IFSC code, the amount paid by the buyer in a white paper.

Bank will check with buyer on how much money to be released and a maximum of 90%.

Money will be credited in the business hours.

Seller now initiates an email for handover if not already taken else pass the key to seller.

Builder will updates their records accordingly.

Hope this helps.

Regards,

Ranjith Padmanabhan