Process of buying a house
The process of buying a house must be cautiously carried-out as in this modern world the amount of scams that are being carried out are at a very high number. Although keeping the scams aside there is a certain process that is to be followed for an individual to make a sound decision in the field of Real Estate.
The first and most basic thing to be done is to choose the city in which an individual is looking-out for purchasing the property. The easy part ends once you’ve chosen the city. From here on forth a person has to be very cautious in making each decision. So, after choosing the city he must consider factors like work place, traffic zones, personal requirements and other factors like accessibility of the area and then Zero-In on the locality in the city he wants to reside in.
The second step would be that he must consider when he wants to take occupancy of the property. This step is for those who are looking out for staying in the property to be purchased, If in case the individual wants immediate possession of the property he has a different set of decisions he must make. Firstly, He or She must know what tenure they are planning to stay there for. The reason for this is because in case they are looking forward to living there for an average of 8 years which again is quite a long period of time then he/she must purchase either a newly built apartment Or an apartment that is not more than 3 years old (Advisable).
The Third and a very crucial step is to set-up a budget in which the buyer wants to purchase the property also if they are willing to make adjustments of maximum of what numbers from their budget and making sure they stick to it and request the Agent to show them properties according to their convenience.
The next would be short-listing the properties they are willing to purchase in.. That may be both renowned or local builders. It is advisable to have at least 5-6 houses which if you had a chance you would buy all and after which you can take a step back and choose what best suits you. This again must be done very carefully. After all the process is complete.. You can go ahead and choose the flat you have decided to purchase.
Now comes the part where the negotiations are supposed to be done. Make sure you evaluate all factors before you sit at the negotiating table. Although there is a way where you can get a mediator who can help in the matters relating to negotiations. There are companies that do it for you up to a certain level. One company that I found very helpful in this matter is OSS HOMES. They gave me a good discount with a nice holiday package to start-off with. Now, while negotiating even the payment plans must be evaluated completely so that you are comfortable in paying-off the loans without any kind of haggle. All calculations must be done before going ahead with the confirmation.
Now that you are comfortable with all the previous decisions you can go ahead with the finalization of the unit that you want to purchase. After which the unit is allotted to you and you get something called the allotment letter which is your proof of purchase of the unit number. During this process itself there will be an agreement which will be prepared which will be called the Sales Agreement in which both parties sign and officiate the sale.
Now the last thing that happens is called Registration of a property, The purpose of this is to record the execution of the document. A reasonable charge is implied of 1% at the time. Although, the registration can only be done once the construction of the project is 100% complete. So, don’t hesitate if it doesn’t happen before that!
Now when we talk about a foreign national buying a house in India he would face these challenges before he/she can go ahead with the purchase.. A foreign national resident in India does not require approval of RBI to purchase any immovable property in India. This is because once he is a resident in India, he gets the rights like any other resident. This freedom is however not available to citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan.
Leases are different, too. "Ineligible persons" (e.g. foreign nationals of non-Indian origin and also citizens of certain countries specified above) can acquire residential (not commercial) accommodation on lease not exceeding five years without any RBI permission. However, much property has been ´sold´ to foreigners, particularly in Goa, where prices are cheap and developers are plentiful, on 5 year leases. The buyers won't get title to the property until they can obtain residency, which is what most of them intend to do eventually. But they may be disappointed - increasingly new visas explicitly forbid foreigners from staying in India more than 180 days consecutively (see article in the Daily Telegraph).
There are also many stories of bribes being paid for the law to be circumvented. Currently an initial investigation into a selection of property deals has been launched by the chief minister of Goa, Pratapsingh Raoji Rane. The worst case scenario facing anyone who has not adhered to the letter of the law as stipulated in the Foreign Exchange Management Act of 1999 is the confiscation of their property assets. Some local xenophobia is being whipped up over this issue.
By looking at all these factors any potential buyer out in the market now has enough knowledge to go about the whole procedure well informed about the possible drawbacks he can face. But, we here at OSS specialize in easing the process of buying a home by giving our customers the attention required and that has to be given for buying a house. We eliminate all sorts of wrong doing that may happen during the course of hunting down and buying a house. Hope we can help you for your future Real-Estate needs for now or in the future.