Real estate purchase process map - draft1

 

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Here is a property / Real estate purchase process map created using a quick search for related content and organising the thoughts in a mind map format. Idea is to provide a comprehensive yet easily organised information which can be used by individual property buyers. This was created recently to get some level of understanding of the various key pre-requisites required and to ensure that a level of due diligence can be done considering the ammount of money involved. Obviously, it's nowhere near dependable, but surely worth a look for someone who may get confused with large no of websites that give overlapping info, without a usable checklist that one can carry along.

Below is a mind-map depiction of the process draft, below the map, is an indented textual representation of the same process, click on the text nodes to collapse / exand he nodes to browse the content. It will be great to hear from you, do let me know if this was useful to you, and  any way it can be updated.

• Property Purchase
  • Types
    • Land
    • Flat - old
    • Flat - new
  • Before selection - Property aspects
    • Specs
      • Dimensions
        • measurements of the plot and its borders from recognised surveyor / self check
        • survey sketch of the land from the Survey Department and compare for accuracy
        • Saleable / carpet area
          • mark-up on carpet area
          • balcony %age area included in calc
          • terrace %age area included in calc
      • amenities
        • water supply
        • electricity supply
        • security
        • Lift
        • gym, garden, park, swimming pool etc
      • adequate natural lighting, air circulation etc
      • drainage system available in the apartment and in neighborhood to ensure proper facilities during rainy season
    • other aspects
      • builder history - reputation, prev projects...
      • prices in the surrounding areas
      • Age of building
      • neighbours..
      • reason for selling the property if not a new construction ...
      • Appreciation possibility of property
      • access to bus, train and other transportation
      • check the environment at different times of the day...
    • Original property documents
      • Clear & marketable Title of land / property
      • leased vs freehold - If flat / property is on land which is given on lease, the terms of the lease must be verified
      • check payment of stamp duty in instances of change of hands of property
      • Inheritance - Will, Mutation and Probate...
      • Land in the name of seller and seller alone
      • If more than one owner, release certificates from the other people involved
      • If a person holding power of attorney on behalf of the owner is executing the sale documents, the said power of attorney should be scrutinized closely
        • valid agreement to sell
        • ensure irrevocable power of attorney
        • a Will
    • property linked debt and liabilities
      • any previous outstanding loans...
      • all the previous dues relating to the said property have been cleared by the owner/seller
      • Property taxes that are due to the government or municipality - latest tax paid receipts
      • Enquiries in various departments of the municipality to ascertain whether any notices or requisitions relating to the property have been issued and are outstanding
      • no claim on the property by authorities or government
  • planned development / Pre-construction
    • land is designated for the residential purpose
    • Approved layout
    • Intimation of disapproval (IOD)
  • cost
    • rate per unit area
    • Saleable / carpet area
      • mark-up on carpet area
      • balcony %age area included in calc
      • terrace %age area included in calc
    • other charges
      • car parking,
      • society formation charges,
      • power backup,
      • higher floor premium,
      • modular kitchen,
      • wooden flooring,
      • electrical connections etc
    • Maintenance charge for apartment (water taxes, security fees, lift, electricity, lighting available for common area etc)
    • If the house or the flat that is being purchased is in a building built on a land which is given on lease, lease rent to be paid by the flat/house owners
      • check expiry of lease / renegotiation date of the lease rent
    • lawyer fees
    • Registration and notary cost,
    • realtor’s commission
    • taxes...
    • all aspects connected with payment of wealth tax.
      • if you own a property then it is totally exempted from the wealth tax without any upper limit
      • If you own more than one residential home then it is liable to wealth tax unless it's rented for more than 300 days in a financial year
    • income tax - if rented...
    • capital gain - divested capital investements need to be reinvested in property with possession within the stipulated time period to avoid capital gains tax.
    • Title insurance
    • home insurance
  • Before construction
    • legal documents
      • architect certificate,
      • municipal approvals,
      • completion certificate draft,
      • agreement draft
    • Plans:
      • Approved construction plans are available and they match with the design being promised.
      • Such approved plans must be displayed on the project site at all times
    • Permits:
      • urban/ town planning,
      • municipal corporation,
      • environment and forests,
      • airports etc
    • Land:
    • Ownership:
      • Articulation of the landowner/ promoter/developer's rights on open spaces, terraces etc vs that of the flat buyer(s) with respect to unrestricted ownership and enjoyment of property by flat buyers.
    • Purchase / Sale agreement
      • ?? date of delivery
      • Inclusion of a clause that you will be given the completion certificate when the flat is handed over to you
      • Quaity aspects inclusion of sanctioned plan of the building and the specifications of the raw materials to be used for construction
      • Also, try to get it mentioned in the contract that if a sum higher than the original price has to be paid by you, the builder would give you additional time for that.
  • during construction / Before possession
    • ensure that they do the vitrified tile flooring properly
    • Make sure the kitchen granite slope is towards the sink
    • provision for chimney or ventilator fan installation for kitchen
    • wiring for geysers, fridge, washing machine, microwave oven, to ensure you will not face any difficulty in case you prefer to install Inverter.
    • choice & type of colours to be painted inside your flat
    • flat and electricity bill transfer in your name
    • safety grill work for balcony and main door entrance.
    • Keep checking with the builder if any changes are being made to the specifications mentioned in the agreement and the allotment letter.
    • You must also ask for a copy of the sanctions that the builder has taken from the authorities to carry out the alterations
    • Start/join online group / blog of the fellow co-op members to create a pressure group