Buying a home takes a lot of time, you need to find a home that’s right for you. A newly constructed flat in a huge building society might not be what you’re looking. Perhaps, it’s an old home with a garden that you prefer, or one that’s in the heart of the city and has some history; resale homes have plenty to offer in these cases. A resale home is a home that was purchased and is ‘For Sale’ by the initial buyer.

No matter what attracts you to buy a resale property, there are many benefits to buying a resale home such as –

  • Location

These homes are slightly older and will be found in the older neighbourhoods of the city. New flats are found on the outskirts and newer or developing parts of cities. These areas are well planned and already have everything in the neighbourhood that you would want.

  • Larger houses

As the city grows, you’ll notice that houses are getting smaller and smaller. The older homes are spacious and tend to be much larger, have higher roofs and are still in the heart of popular residential layouts.

  • Ready to move in

You don’t have to wait for the construction to be complete, you don’t have to worry about setting up your internet, cable, gas connection etc. all those amenities will be in place. The previous owners will have almost everything you need in a house already up and running.

  • Save on Taxes

Buying a resale house means less tax for you. According to the Income Tax Act, you can get a tax exemption of up to Rs.1 lakh (on principal EMI can be availed under 80C). You can also get a tax deduction of up to Rs.5 lakh for home loan interest under 24B.

There are also things that you should look out for while buying a resale house such as –

  • The age of the property
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Old is gold, but how old is too old? It is best to avoid any property that is more than 40-50 years old. By this time, you might notice a lot of structural damage in the building and home. The renovation needed and the extra repairs would mean you would have to spend a lot more than you budgeted for.

  • Association Rules and Regulations

If you are buying a home in a society, there is always an association that governs what happens in the society. You will need to check with them about what kind or renovations/modifications are allowed in the home you are purchasing. Some societies will have rules about the types of renovation, some about timings when work can be carried out, etc. If you are buying a home that requires plenty of renovation, it is safest to get the approval of the building association first.

  • Home insurance and down payment

When you are going to buy a resale house you should keep in mind that the amount you’ll get from insurance is going to be lower than what you will get if you were buying a new home. The down payment for the house will also be higher than if you buy a new house, for resale houses you will need to pay at least 20% as a down payment.

  • Pending Dues

An important thing to check is if there are any outstanding dues that the owners of the house are yet to clear. The dues could be unpaid bills like water, electricity or even maintenance. Most time the owner might not voluntarily disclose this information, so it is better to find out about this as early as possible.


Document checklist

No sale of property, apartments, villas etc. is possible without the right documents. These are the documents you need to have when buying a resale property-

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1-    Sales Deed – the primary legal document

2-    Plan – the building plan will tell you if the building is sanctioned and approved

3-    Occupancy Certificate – says the building is fit for habitation

4-    Encumbrance Certificate- the house has no liabilities

5-    Tax receipts – there are no pending tax payments, everything is up to date

6-    Mutation deed – access to all previously registered agreements

7-    NOC – No Objection certificate

8-    Possession Certificate – from builder to owner then to you


Process of the purchase

After you find the house that you wish to buy, there is a sort of method or certain steps that you need to follow. These include –

1-    Meet your financial advisor, if you don’t have one, you can talk to your banker and seek his guidance. They will help you appraise the home and help you plan what is to be done with regard to your finances.

2-    Get the due diligence done for the property. All the documents, the value of the property etc. needs to be checked by professionals. Things like title verification are very important, you can avail this service here.

3-    If the previous owner had bought the house with a loan, then you need someone who will check the loan documents. You need to visit the bank and find out how much of the loan has been cleared, how much is pending and what is the tenure etc.

4-    Once the above is complete and clear, you will need to get your Sale Agreement created. This needs to be done by a professional as it is a key document in the house buying process, read more here.

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5-    Now, you need to talk to a bank or HFC (Housing Finance Company) for assistance with a home loan. You can even click here to get assistance with your home loan.

6-    Once the Sales Deed and Sales Agreement are ready and the terms have been fulfilled, you will need to register the deed. The process of executing and registering the sales deed will happen at the sub-registrar’s office.

7-    At the time of registration, you will also need to provide legal and technical details or clarifications if required, so that the disbursement of the sanctioned loan amount happens on time.

8-    After the sales deed is registered, you as the buyer will need to start working on post-purchase formalities like Katha transfer, changing the name on electricity, water etc meters.


Don’t rush into a property purchase, it is an activity that takes time and patience. It is also advisable to follow all the steps given above and follow them in the order given. If you skip steps or go out of turn, it will lead to unnecessary delays and disputes.

If there are errors with any of the documents, you could end up losing plenty of money, creating a mess and your personal finances could end up in shambles. This is why it is advised that you work with seasoned professionals, be it lawyers, bankers or those assisting with the due diligence process.

Hiring the right team to assist you might seem like a waste of money, but if these basics are not in order you could end up with a much greater loss. Don’t do things the hard way when there is a more convenient option, sit back and relax while the NoBroker team helps you with the purchase of your home.


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