A resale flat comes with its own history. The documents to ask for, the checks to run, and the order in which a careful purchase usually proceeds.
A resale flat can be a sound purchase: the building is complete, you can see what you are buying, and the neighbourhood is known. It also comes with a history. Each owner since the builder is a link in the chain, and each link has to hold.
The documents to ask for
- The sale deed in the seller's favour, and every earlier deed back to the builder's sale.
- The documents behind the builder's own title: the land deeds, conversion order and any joint development agreement.
- The approved building plan and the occupancy certificate.
- An encumbrance certificate for at least thirty years.
- The khata certificate and extract, and recent property tax receipts.
- Paid-up electricity and water bills, and a no-dues letter from the apartment owners' association.
- If the flat is mortgaged, the lender's statement of the outstanding amount.
The checks
Read every deed for gaps or breaks in the chain. Compare the flat's description, including its undivided share in the land, across the deeds, the plan and the khata. Check the occupancy certificate covers the floor and block you are buying, and that the flat has not been altered beyond the approved plan. Search for pending litigation over the property or the project.
How the purchase usually proceeds
- Title check and a written report before any substantial payment.
- A sale agreement setting out the price, the payment schedule, the documents the seller will hand over and what happens if either side defaults.
- Arrangements with the seller's lender, if any, to close the loan and release the original documents at or before registration.
- Payment of stamp duty and registration charges, calculated on the higher of the agreed price and the guidance value.
- Registration of the sale deed at the Sub-Registrar's office.
- Khata transfer, and transfer of utility connections and association membership into your name.
Keep the originals of every document you receive. A future buyer, or your own lender, will ask for the same chain.