Tips To Buy An Old Property

Buying an old property is sometimes out of choice while most of the times out of compulsion. Localities which are developed and lies close to commercial areas of the city have limited newly constructed units which make it difficult for buyers to choose from available options. Though buying a new unit comes with own set of liabilities and risk, investment in old construction can be risky too if not checked properly. Here are few tips you should consider before buying an old property-

Check the legal aspect

The legal check for old properties is time-consuming but worth doing. There is an elaborate list of formalities and paperwork to be done for buying an old property. First of all, the buyer should check whether all the documents are registered in the government records. Apart from this, the property should have clear title. Obtain purchase agreement, sale deed, no objection certificate from the society, a copy of builder buyer agreement and documents that establish ownership of previous buyers. Also, make sure there are no dues on the property such as electricity bill, water bill, property tax bill etc. Check from various sources to know if there are any pending charges on the property.

Financial capabilities

There is a stark difference between property bought from a builder and from an individual. While a developer's financial history is available at various points, finding out the financial background of the seller is a little tedious task. One needs to keep the track of all types of financial transactions that have been involved in the particular property. The encumbrance certificate is one of the documents that you can derive to check the pending cost on the property if any. Moreover, also check if the seller has obtained financial assistance from any of the banks. You can ask the seller to hand over the NOC from the bank as well.  Resale property deals also involve cash component.

Check for home loan facility

Banks offer loans for old construction as well. However, banks conduct the technical verification of the property and ascertain the building conditions. The loan component depends upon the institution's policy on the age of construction. However, buyers need to know that banks do not lend amount more than the digits mentioned in the sale deed.

Other charges

Usually, amenities offered in an old property are less, therefore the maintenance charges are also comparatively low. However, check with the resident welfare association about the common space charges. Moreover, older constructions do not charge the residents for certain amenities like lifts, community halls etc.

Apart from this, look for structural defects inside and outside the house. A building structure, plan, walls, cracks and sewage should be examined seriously. In fact, old properties have high chances of seepage through walls which give way to moisture, ultimately damaging the structure. Also, ask the seller if the wiring needs a change as an aged wiring increases the risk of an accident. Consider another cost that you need to pay after buying an old property such as painting, repairs, water proofing etc.

Also Read: Tips On Buying A Resale Property