A Comprehensive Step By Step Guide
to Buying an Apartment in Bangalore
Buying a home is one of the most important decisions you will take in your lifetime. It is a decision that has to be made after a lot of research and thinking. This guide is provided to assist a first time buyer to move through the home buying process with a better understanding on how the real estate industry operates and how to be an informed consumer during the process. This article also contains useful tips and strategies that can be adopted by any homebuyer; whether it is their first time, they are buying a home, or are planning to move to their second home. The guide will also caution the buyer about things to avoid, ensuring that the purchase of the new home is not a financial disaster.
It is a general reference guide and may not cover all local guidelines, legal issues or prevailing conditions that might be specific to your situation. We strongly recommend that you consult our panel of experts who are well qualified to give you the necessary guidance for any specific transaction in Bengaluru.
Below are some of the steps that need to be followed while buying a new home:
“Location, Location, Location”
The location of your home is going to play a significant role when buying an apartment. If you are employed, it can be extremely exasperating to waste a lot of time travelling and manipulating the chaotic Bengaluru traffic. If you have a family with school going kids, your preferred location for your home is dictated by the choice of schools. While deciding on a location, please ensure that the neighborhood is in an area with adequate infrastructure like road connectivity, public transport, water and sewer availability. It is also crucial to make sure that the apartment is located close to good schools, shopping and essential amenities.
Which apartment amenities are most
important to you?
While buying your dream home, it is necessary that the home have all the features and facilities you and your family needs. Depending on the size and profile of your family, the type of facilities that are important may wary. For example, if you have a family with young children, a child’s play area and swimming pool are essential amenities. For some, a rooftop penthouse, with a panoramic view of the City would be an attractive prospect. Some might want a home with well-designed interiors with lavish bathrooms, while for some; a large modern kitchen may be attractive. The new apartment complexes normally provide all the facilities depending upon how much one is willing to pay.
An Apartment that fits your bill!
Many people tend to put the cart before the horse by setting their heart on their dream home and then checking to see if they have the necessary finances to buy the home! It is important to fix a “not to exceed” budget before one starts scouting for a property.
Even if you are availing a bank loan, most loan programs require a minimum down payment of around 10 - 20% of the total cost of the apartment in order to secure a loan. How much one can afford to pay on a monthly basis can be very tricky. It is normally advisable that your EMI should not exceed 40% of your of your gross monthly salary. You can use the EMI calculator
that is provided on our website when calculating what your monthly installments will be. It is also important not to overlook the various hidden costs
and maintenance costs that will arise after one buys the apartment.
When buying a home, you need to do an extensive search on credible builders and developers in the area. It might be advisable to visit various projects of the developers and if possible talk to some of the homebuyers who have purchased apartments from the builder. You may also consult our website where we share experiences of other buyers. It is important to be aware of the builder’s reputation on delivering apartments on time, the quality of construction, and the size of the projects completed. It is also important to know the financial health of the builders and find out how long the builder has been in business. Another aspect a homebuyer should verify is that whether the builder had obtained occupancy certificates for the projects that were completed. As most of the bankers conduct a due diligence on the project to check if all approvals are in place and appraise the builder’s financial health, it would be prudent to check if any leading banks and housing finance companies have approved the project for extending loans to buyers.
Securing Financing to buy your home
Planning your finances before you invest in a property is a wise idea. There are plenty of financing options out there so make sure you research them all and pick the right option that suits you the best. Since most banks will only cover up to 80% of the cost of the apartment, you need to make sure you have enough savings to cover the 20% before applying for loan.
Do your own Legal Due-Diligence
While buying a home, do not rely totally on the banks, but make sure to go through the documents yourself and we strongly recommend you obtain legal consultation to go through the documents. Ask for copies of all necessary permissions from the builder prior to making any financial transactions. Check the following documents and clearance certificates to avoid getting into any legal tangle in future:
- Land Records and Titles
- Draft Sale Agreement to verify
- The Undivided Share of Land for the particular apartment
- The carpet area along with the super built up area of the apartment.
- Amount to be paid for the apartment and the relevant dates for the various instalments of payment.
- Construction Commencement Certificate and Clearances
- Approved Sanction Plans
- Land Use Certificate and Conversion Certificate if applicable
- Master Plan of the property
- No Objection Certificates from concerned authorities.
Pay the booking advance and procure the Sale Agreement
After the documents have been verified, the buyer will need to make an advance payment for your home and sign the Sale Agreement. This Sale Agreement is signed on a stamp paper. It is advisable to keep a copy safely for your records. This is very essential for any legal proceeding that may occur due to failure or delay in handing over the apartment.
Do make the complete payment of flat on time as mentioned in the Agreement
The Sale Agreement specifies the dates for the payment of installments. It is important to adhere to these dates as failing to comply with these payments may result in losing your booking advance and the apartment. So, do not take the Agreement lightly and make sure that you are ready with full payment with you to avoid any such mishaps.
Registering the Sale Deed with the Sub Registrar
Once the final payment is made, it is the time to visit the sub registrar of the area and produce the Sale Deed before him. He after verifying the papers will get your document registered from his office firming your hold on that property and the apartment is now yours!
Time to obtain the Khata
Obtain the property Khata from your builder as it will help you avoid any future financial hurdles. It affirms that your property has been regularized and no harsh action can ever be taken against it. This document is required at the time of payment of property tax.
Remember purchasing a home is one of the historic moments in your life, which involves a significant amount of investment of your time and money. Therefore, it is important to be prudent in such matters. We strongly advise you to consult with an expert to make sure that all the pieces fall in place!