Before purchasing a flat

Before purchasing a flat

 By Staff Reporter
Posted on 20 Feb 2002

In our previous article, we have seen the procedures and formalities of purchasing a flat in under construction project, now we look after the precaution and pre-requisite while purchasing a ‘resale’ flat in co-operative housing society :-
Your budget : Your finance is the principle determining factor to decide the location and size of the flat, which you want to purchase. It can be generated by either selling the existing property, club with your own savings, and or selling shares, units etc. Loan from provident funds and friends and relatives.
Location : This depends on your budget, and your choice of surrounding society (relative community etc.) Your should also look after your, family requirement like school, college, hospitals, banks & transportation.
Condition of the building flat : Cost of the flat is very such depends on the condition of the building and the maintenance of the flat. Any extra expenses incurred for up-gradation of the flat like quality plumbing, electric wiring, tiles, and granites etc enhances the flats value. As it is housing finance institutions don’t give loan to more than fifteen years old building. As a rule. Seller always highlights advantages of his property while purchaser tries to point out shot coming/negative points of the surroundings, building conditions, flat maintenance etc.
Documents required : The following must be checked before purchasing a flat :
Share certificates in owners name to be checked.
Agreement made by seller with the last party to be checked
Rent receipt if any to be checked
Latest society bill to be checked
Latest electricity bill to be checked
NOC letter from society to be obtained
New agreement to be entered into

Procedure for purchasing a ‘Resale of flat’
The seller/purchaser should submit the below mentioned papers/documents to the society.
Notice of Intention to Transfer (Form No.20A) & Letter of Consent of the proposed transferee. (Form No.20B) {Bye Law no. 40 (a)}
Form of application for transfer of shares and interest in the capital/property of the society by the proposed transferor. (Being an Individual) [Form No.21 (2) Bye-Law no.40 (d)(i).
Form of application for membership of the society by the proposed transferee. (Being an individual) (Form No.22)
A form of declaration for not holding immovable property in any Urban Agglomeration specified under the Urban Land (Ceiling and Regulation) Act, 1976, exceeding 500 sq.metres (to be given by the transferor on (d) (ix).
A form of declaration for not holding immovable property in any Urban Agglomeration specified under the Urban Land (Ceiling and Regulation) Act, 1976, exceeding 50 sq.metres. (To be given by the Transferee on Stamp Paper Rs. 10/-).
(Form No.25) (Bye laws Nos. 17(b), 19 (viii), 20 (iv) & 40 (d) (ix).
a form of undertaking to be furnished by the Prospective Member to use the flat for the purpose for which it is allotted, (To be given by the Transferee of Stamp paper of Rs.10/-).
(Form No. 3) [Bye Law Nos. 17(b) 19 (iv)]
Copy of the Agreement
Original Share Certificates.