Important Points Should Be Kept In Mind Before Buying Any Property

If you are willing to buy a property then you have to be cautious with some important things. I have received many queries from my clients that what are the question that should be asked by him from the seller of the property.  This happens because the buyer of the property is cautious in his approach and which is very good. In one of my previous articles, I have posted about the statutory requirements that need to be taken care of by the buyer and the seller of the property in which I have emphasized on the TDS and capital gain tax. To understand which points are relevant to be asked from the seller of the property, we will discuss the important points which are never discussed with the seller. There are some of the points which are simply assumed or taken for granted by the buyer.

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As depending from case to case, these points may have future repercussions. Although, it is always advisable to ask a seller of the property, all the relevant queries before you sign below the dotted line. The major reason, a buyer could not be asked about the important points from the seller of the property because he may have the fear of losing the deal. It is true in the case of a seller’s market like Delhi, Mumbai, etc. I have heard from a broker telling my client that the property seller doesn’t like these kinds of buyers. A client may have the queries to him i.e. broker.

In my opinion, it is always advisable that you, as a buyer, should clarify each and every query with seller of the property to avoid any confusion in the future. It is possible that a query may sound silly but still you should be clarified. If you are planning to buy a property that means it is possible that a person is investing his lifelong savings in the purchase hence never take anything for granted. Any incorrect decision shall only leave a trail of future regrets. IN this article, I have compiled a list of 7 Imp points that a buyer never asks a property seller but he must clarify.

Points to clarify with Property Seller

  1. Maintenance Charges:

It is one of the most important points that the buyer should consider before buying the property because maintenance charges of the flat may make or break any property deal. If you have purchased the said property as an investment and planning to put that flat on rent then these maintenance charges may also impact your rental returns. Generally, it is seen that the maintenance charges are fixed on the basis of the type of flat that means for 2 bhk, the maintenance charges are comparatively lower than 3 bhk flat but one of my client in Delhi is paying it on equal basis i.e. Total Maintenance Charges / No of units. For example: if the maintenance charges were decided to be 30000 and there are 30 flats in which 15 are 2 bhk and 15 are 3 bhk, then also all persons in each apartment are paying  Rs.1000 i.e. equal for each apartment. In the past few years back, Bombay High Court gives judgment in this regard. My client in Delhi has purchased 2 bhk and paying the equal amount as paid by the 3 bhk flats that mean he is at a loss because he has a small size unit i.e. 2 BHK. Per month maintenance charges of Rs 1000 is quite high for the small unit. The seller of the property also did not clarify this point to the buyer and once the deal has been finalized, he (The buyer) came to know that the seller of the property is finding it difficult to sell the apartment because of this reason. As a buyer, you should always need to clarify the same from the property seller. Generally, the maintenance charges are divided as per the type of apartment and variates as per the amenities included in the building like swimming pool, clubhouse, etc. Whereas plain apartment without any amenities shall have the maintenance charges lower as compared to the building having different amnesties. 

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It is also seen that many people buy the property at the price higher than the price for which they can afford. Many people have done this because to achieve a good status in society. Let me give you advice, which I gave to all my client who is willing to buy a property that you should buy the property at the price which you can afford.

  1. Rules and Regulations of the Society:

In every society, they have their own rules and regulation which includes whether the bachelors are allowed for rent. Suppose, you bought the apartment for investment purposes and planning it to put on rent to your known bachelor and if it is not allowed as per the society norms. Hence it is necessary to understand the rules and regulations of the society and Ignorance about these rules and regulations of the society can be disastrous for potential buyers especially in a city like Delhi. These are also called society bylaws. Although 90% of rules are more or less the same for all the apartments the association formulates their own rules. One of the most common rules of society is that Pets not allowed or Only Vegetarian Society.  It is possible that these rules may not be convenient for a buyer and limits the scope of sale for the property seller. It is seen that many rules and regulations are not disclosed to a buyer therefore it may shock him after the deal.

  1. Agreement Termination:

As per the recent studies, it is noticed that Indians are one of the most optimistic people in the world. Although, I don’t believe in being optimistic or pessimistic. An individual should not be only optimistic or pessimistic rather he should be Realistic, according to the situation. In any property deal or sale agreement, there is always a risk that a buyer or the property seller may terminate the agreement. These kinds of risks are due for both person i.e. to foreseen and unforeseen circumstances. Also, one of the common reasons is the rejection of a Home Loan of a buyer. It is very critical and absolutely important for a buyer to discuss all these scenarios with the property seller. I think, all these scenarios should become the part and parcel of the sale agreement to avoid any future disputes.

  1. Composition of the Society:

There is one more common issue that needs to be taken care of by the buyer of the property before purchasing it. That is forming a homogeneous society of a particular community/caste/religion. Well, this condition is not written in all agreement and it is suggested that before buying the property you should be physically checked. In case, if you are not from that particular community/caste/religion then you might have to face resistance from the society members. Also in some cases, if a person has faced the same difficulty then I have observed such a buyer had no option but to sell the property. Hence, you should check the composition of society and the existence of any such unwritten rule from the property seller before buying property.

  1. Tenant to Owner Ratio: 

In my opinion, if you are planning to buy a property for self-occupation then it is the very most crucial point to be considered. In cities like Mumbai, Delhi, Bengaluru, Hyderabad, etc with a high floating population, the tenant to owner ratio has increased. Let me first explain what is the tenant-to-owner ratio. Well, if there are 30 apartments in a tower of the society then it is to be decided by the society that how many flats can be rented out. In fact, I have seen that because of these regulations in society, the person being tenants who are bachelor’s have to stay in PG’s. A buyer cannot stay in such complexes with a family. You would not believe that one of my clients is living in an apartment in Bengaluru which has 90% bachelor occupancy. The ideal Tenant to Owner Ratio should be 30:70 for any apartment complex. Hence, you should also check it first before buying the property.

Lower TDS Certificate On Sale of Property

  1. Location of STP and Generators:

At the end of the deal, there is one more point that you should consider before buying the property and it is the location of DG/Generators and STP in an apartment complex. It also includes nearby mobile towers. Since these towers spread unhygienic radiation which is not healthy for any person. Due to this, the price of these flats is sold at a lower rate as compared to other flats. Although technology has evolved so much you cannot avoid 100% stink from STPs. Other than this, these Generators also create some noise pollution and also emit harmful smoke. Hence, it is advisable that you should also check for temporary garbage dumping yard in society. Where any flat which is near this yard is also a potential health hazard. You should check all these points with the property seller before the purchase of a property.

  1. Inclusions and Exclusions:

Now, I am referring to the furnishing of the property. Mostly there in the agreement, it is written that what are the things that would be provided by the seller of the property in the flats like a fan, chimney, cooler or furniture, etc. Although in some situations, the seller of the property just promises orally to provide these things, it is not true always. My sister bought a property and she was surprised that the property seller removed each and every fittings and fixture from the house. It was left as naked property. It is always advisable that to clarify inclusions and exclusions in property deals to avoid these kinds of future conflicts.

I hope this article will help you to choose the right property and check the relevant things in society before buying a house. If you have any doubt then you may ask us anytime. We will be happy to assist you.

6 thoughts on “Important Points Should Be Kept In Mind Before Buying Any Property”

  1. Hi,
    My son, a NRI based in USA had purchased property in Pune. We have joint account i.e NRE and NRO. He has purchased these two residential properties with his wire transfers to his NRE account + loan taken from Indian banks. I am registered POA for him for all these transactions.
    I have sold the properties just recently and sale proceeds are parked in his NRO account.
    I need advise from you with respect to following :
    1/ Obviously the sale proceeds are more than the money transferred by him in his NRE account being property age is more than 5 and 10 years.
    2/ The amount is less 2 lakh dollars.
    3/ Sale does not attract STCG/LTCG as certified by CA. Approval from Income tax deptt is sought for lower deduction of TDS ,TDS paid accordingly and receipts are held by me. All legal compliance of tax and TDS are made in full.
    Kindly reply and help for me to proceed further.


    D V Mansukh

  2. Every time, I had transferred funds from NRE to NRO accounts to issue cheques to the builder. Please consider this point .
    Please refer my earlier comment to link with this information.


    D V Mansukh

  3. thank you , for the information and important points that we should check before buying any property that was very useful – Nisarga Builders are a leading Property Developers. Founded in 2000, we are dedicated to designing, developing and constructing the finest homes in the Bangalore in locations with breath-taking views of the gardens, environments. Our prime goal is to provide you with a quality home in a good selection of prime locations. We provide our clients with high standards of construction and we supply excellent quality of fittings and fixtures. In short, we provide you with a home that will make all of us proud and happy. We continue to offer our services, advice and assistance years after possession of your new home.This can be anything from finding and choosing the right furniture and electrical appliances, to the employment of a gardener, or to looking after your home whilst you are away.


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