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Before Buying a Home

For most middle and upper-middle class families, a house is the most expensive asset owned by them. The asset also has emotional value and therefore families should perform meticulous research before buying the same. The following is a set of must-dos before buying a house.

Due diligence of a property:

To ensure credibility of the builder, two must-have documents for a home buyer are the approved drawings of the project and the Intimation of Disapproval (IOD) which is an instruction set pertaining to construction from an authority to the builder.

Buyers looking to buy space in under-construction buildings should obtain a no-objection certificate (NOC) from the lender, if the property is mortgaged, and a commencement certificate which is a proof that the builder has obtained all licenses and permissions from the appropriate statutory authorities. In case the buyer doesn't hold the NOC and the builder defaults on his mortgage payments, the buyer may be evicted from the property. The builder should provide a clear land title, which implies that the property is free of litigation and associated debt. A source of risk for under-construction projects is the uncertainty on completion time.

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