There is a pattern that is followed while carrying out property transactions. However, every property is unique in some way. Likewise, every transaction has unique features. This uniqueness of the transaction also gives birth to certain complications sometimes that might temporarily shake your property-buying plans. So, let us discuss what kind of unique issues you might face while buying a property and how you could act consequently to let any difficulties not disrupt your plans that are made up with so much emotional effort and eagerness.
Time is of the essence: Time always plays an important role in property deals. That is why all experts it a good time and due diligence before you finalize a deal. Typically, if a seller is in a great hurry, you might look at it as a red flag. But, there are cases where the conditions do not permit the seller to spend too much time in carrying out the transaction. For instance, If the seller, say, he/she is an NRI, they would justifiably be in a great hurry to finish the task and leave to their present country of residence.
If the urgency shown by the seller is valid and not just an eyewash, and if you do wish to purchase this property, you must be ready with some financial arrangement that would speed up the deal. This is one reason why various buyers get a pre-approved loan. Being in touch with a chartered accountant or a lawyer could also speed up the process in this case.
Money does matter: In a traditional process, the buyer initially pays 10 percent of the property sale as an earnest deposit after which a sale agreement is created. Before the property is registered, the buyer must pay the complete amount. On the other hand, some sellers might ask you to pay a token amount as soon as a verbal agreement is reached.
This amount could be a couple of lakhs or less. It differs from person to person. According to experts, it is a bit risky to pay any amount of money till the sale agreement is created, sometimes you might lose the property if certain personal impulses of the seller are not met.
If such a situation a situation comes that you are at the receiving end, you may consider meeting the sellers demand. Under no circumstances, however, should you pay the money in the case. Do note that the government has banned the use of over Rs 20,000 cash in property transactions. Holding cash of over Rs 2 lakh is also barred.
Also be careful of the fact that quite a lot of big and small expenses would appear out of nowhere while your purchase is in progress. So for this purpose, you need to keep some money with you. In case you are buying a property for Rs 30 lakh, rest assured you would end up spending Rs 35 lakh at least (we are factoring in here only registration changes, stamp duty, loan –processing fee, etc., and not renovations).
This is the sort of calculation involved in the process, make your purchase plans according to your savings.
