Resale flat purchase:
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1) Finalize the price after negiogiation with the seller.
- Confirm if the final prize includes everything (example: Stamp duty, GST, any additional charges)
- Confirm that the saledeed to be done will have the same price we finalized (i.e everything white, no black)
2) If you like it, check the following details of flat:
- Builder name and his/her reputation, reviews
- Consult your friends if someone in your circle stays here
- Ask for the flat registration number/id and check online on state govt site. (RERA number/Registration Number)
- Check the age of the property (should not be too old preferably)
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3) Contact the bank agent (having tie-ups with ICICI/Axis/HDFC/Bajaj Finance, i.e all major banks/NBFCs)
- You need to provide you company salary slips, Form 16, 6 month bank statement, rent/lease agreement, pan, aadhar, photographs
- The bank will contact you in a few days on your email asking for some basic details. You can reply on it.
- 3rd party agent (contract given by banks to 3rd party agencies) will come to your place to verify few details like duration of stays
on rent, rent amount, pan number, earning members in family, take photographs of owner name plate, home entrance, etc. This is
basically a background verification of the person who is opting for loan.
- You can track the progress of the process in the link shared on your mobile number.
- You will get SMS from bank that the loan is approved.
- The agent whom you contacted will give you the hard copy of the loan sanction letter where the amount of loan sanctioned is
written with bank icon, and bank executive signature on it.
- Read point#3.1 below if the loan does not contain insurance.
- Verify the loan amount sanctioned, with EMI to be cut monthly, loan period (example: 240 months), processing fees,
administrative fees, etc. Read all clauses.
- You will require to sign it and send it back to agent so that he can submit the same in the bank.
- Keep one copy of the same with you.
3.1) This step is required if the loan sanctioned does not contain insurance. Contact insurance agent.
- The bank agent whom you connected to can himself connect you to insurance agent.
- Check the best plan available with him for home loan insurance + property insurance (i.e home insurance)
- Taking insurance is not mandatory but it depends on individuals and sometimes it varies bank wise too.
- Basically atleast the home loan insurance which covers the applicant's death cover should be taken up
(i.e if something happens to the loan applicant/borrower), then the insurance company will pay the pending
home loan amount to bank. On top of this, property insurance can also be added (ex: protection against
earthquake, flood, other natural calamities, etc. You can check for other cases which are partially covered).
- Ideally, if you add home loan insurance + property insurance, it should add approx 3 more lakhs to the home loan
amount (Approx: 2.5L of home loan insurance and additional 50K for property insurance if the insurance company is
the same/branch of the same bank. Example: ICICI bank, ICICI Pru, ICICI Lombard, etc. But amount may change as
per our choice of insurance and from which company we choose)
- Ask him to add the insurance to the loan sanction letter and connect to the bank agent (refered in point#3).
- Followup with both to get the revised loan sanction letter with insurance added to it.
NOTE: It might happen that adding insurance amount (ex: 3L) to the home loan amount (ex: 90L) will bring the
total amount to 93L but the total approved loan might reduce to some extent. For example: 89L instead of 90L.
So you might be required to pay additional 1L as downpayment to the current house owner.
To avoid this, the home loan insurance and home loan can be kept separate. Ask the insurance agent and bank agent
to coordinate and make separate letters for it. No additional charge will be there for it. Just the home loan EMI
and home insurance EMI will be separately deducted every month. That is, both will work as separate loans.
4) Contact an advocate/lawyer
- Mention the details to him
- He may charge you approx 15k (varies depends on city) for the entire process till saledeed is done.
- Check with him on paying the stamp duty. If its to be paid online to govt site, he will guide you on phone
and you can pay online from your account (NOTE: Sometimes, only nationalized banks are authorized for such
transactions. So you will need account with one of the nationalized banks for payment).
- If to be paid offline, then you might require to handover a cheque or go in person at the required govt location
for payment. Collect the receipt once paid successfully.
- If paid online, the challan gets generated (PDF). Keep it with you as it will be needed at saledeed time. Print a
copy for reference.
- Depending on the advocate - some may prefer doing ATS and some would prefer directly doing saledeed. So confirm
with him which one is preferred.
5) Agreement to Sell (ATS)
- Not compulsory to be created
- Buyer and seller can mutually agree if they want the ATS or not.
6) Disbursement from Bank
- The bank will send you a list of documents (home loan as well as insurance documents) directly to you or through agent. You need to sign at multiple places and send back to the agent/bank.
- Make sure that if you sign in empty/blank forms and submit, then you ask for filled details xerox/soft copy before it gets submitted to the bank. OR You must sign only if all the details are filled in.
- Along with it, you might require to submit the following cheques:
- 2 blank cheques with your sign favoring 'ICICI bank ltd for loan account of <YOUR_FIRST_NAME LAST_NAME>- one for home loan, another for insurance. Purpose - for your Pre-EMI interest debit.
- 2 cancelled cheques - one for home loan, another for insurance
- Rs.5900/- with your sign favoring 'ICICI bank ltd for loan account of <YOUR_FIRST_NAME LAST_NAME>- for home loan processing
- Rs.59/- with your sign favoring 'ICICI bank ltd for loan account of <YOUR_FIRST_NAME LAST_NAME>- for insurance processing
- Submit these docs to the agent/bank. Rs.800 approx charges will be taken by agent for frankling/notary,etc.
- You will get email from Bank to pay Rs.600 approx for stamp duty charges. Pay it and share receipt with agent
- You will get email from bank to pay Rs.27000 approx for equitable mortage payment, Pay it and share receipt with agent. Keep both copies with you printed for reference.
- You will receive an email from bank with the loan disbursement letter with everything mentioned in it (can be a password-protected pdf document). You can check the details and take print for reference. Your first pre-EMI date and amount , your first EMI date and amount everything would be mentioned in it.
- Cheque of the total home loan amount would be generated by bank (with your name and your loan number written on it) to be given to the seller. So that the seller can get his amount (apart from the token,pending amount that you paid). This is the main disbursement cheque which means bank has disbursed the home loan cheque.
- Rs.118 would get deducted from your a/c for signature verification charges by the bank.
- If you opt to get your cibil score, similar amount (Rs.118) might get deducted from your a/c.
- You will also receive a NACH mandate of some amount (approx 3 times or twice of your EMI amount) just as a part of safety/precaution from bank side. Nothing you need to do from your side. THis NACH mandate is just needed from bank in case if the buyer becomes defaulter and is not paying continuous EMIs. In that case, the bank deducts this NACH mandate amount from buyer's a/c and if that is unsuccessful, then fine or defaulter charges are applied on the buyer.
- You might also get a PDF from bank with the month's GST invoice (amount approx 2-4k). Check with your agent for it if anything to be done from your end or anything to be paid additionally.
6) Saledeed
- When the disbursement process is ongoing or nears completion, ask your advocate (mentioned in step4 above) to check online and book a date and timeslot at registrar office for saledeed.
- Advocate will share a draft copy of saledeed on your email to check. Verify all details in it once and ask him to change if any.
- Tax payment by the seller (against your PAN no.) - If you have already paid your pending amount (apart from the disbursed loan), then the seller will pay this tax/TDS (0.75% on saledeed amount) or ask his CA to do it. He will share the TDS certificate of the tax paid. Take print of it for reference.
- Confirm with advocate if you need to bring any witnesses with you or not. Mostly would not be needed.
- Reach the office on the saledeed datetime (joint sub registrar office).
- You and the seller plus the advocate will be needed to be present there.
- Documents (if already provided to advocate in advance) then nothing to be brought to registrar office except 1-2 passport sized photographs, aadhar card and pan card (original and xerox both). It's enough.
- If documents are not provided in advance, then these docs might be needed:
- the buyer and seller's aadhar, pan xerox copies,
- agreement document/copy between builder and seller
- Property completion certificate
- Property tax paid receipt
- Light bill
- Society registration certificate
- Share certificate
- Your bank statement of whatever payments you have made to the seller (as part of token and pending amount). It should include token, pending amount transactions debited from your a/c. If possible, also get the similar bank statement from seller's a/c with entry of the same amount credited in his account.
- You will need to sign at a few places in the original saledeed prepared, stamped in the office. And may be thumb print at few places. Your photo and finger print might be taken.
- Done.
- You will receive the saledeed copy (on your email) in a day or two. And you can collect the original saledeed from the registrar office (1-2 days after the saledeed date. It depends on how much load/rush is there during this time). OR You can ask the advocate to collect the saledeed on your behalf and lend it over to you.
- Once you receive the orig.saledeed, take 5-6 copies of the same. Verify the details. Check the Index-2 copy, it will be needed at multiple places. So take multiple copies of that too.
- You may require to pay the annual maintenance (for entire year) so that it deposits in the society funds from your account and based on the entry from your a/c, the society will generate the NOC with your name in it.
- Also, you may require to pay the society name transfer charges (can be around 20-25k, but depends society wise), which might need to be paid. If you have agreed with your old owner that he will bear the charges, then he would pay the same. But in case the society committee needs this amount to be transferred from your a/c, then you might need to pay it to the society payee/beneficiary a/c. Later you can get it back from the old owner.
- Also, you may require to pay the annual property tax (can range from 5k to 20k based on new constructions, but depends on state and city). This too from your a/c to reflect into the govt records.
- This saledeed will be required to be submitted to the bank so that the bank can release the cheque (example: 90L) to the person from whom you have borrowed the home. So your agent and the owner of the house will go to the bank, submit the original saledeed, society NOC (with your name written on it), pay his pending/outstanding loan amount (apart from the cheque amount he gets from bank) and then gets the cheque from bank.
7) Receive letters from bank
- You will receive home loan letter through post on your current address.
- You will receive home loan insurance letter through post on your current address.
- PreEMI and EMI dates will be written with amounts in it. Based on the dates, PreEMI and EMI will get deducted.
8) Name change at multiple places
- As the saledeed is done and Index-2 copy is with you, and also you have received the society NOC, so start the name change process in
- Electricity bill (ex: Mahavitran)
- Gas bill (ex: Adani/Maharashtra Gas Limited).
- Annual Property tax bill/receipt
- This process is usually online and just requires you to fill the Form, enter the required details, get the signature of old and new owner (your name now), attach the society NOC, Index-2, and pay the nominal charges online or by submitting cheques at the appropriate place mentioned.
- The name change will be reflected automatically in the next bill cycle or 2-3 cycles depending on the process of the organization.
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