Keep things in mind before buying a real estate
Buying real estate is a major decision. Plan your budget carefully and include extra costs such as taxes, registration, repairs, and maintenance.
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Harsh Garg
10/13/20268 min read
Purchasing a house, piece of land, or commercial real estate is a significant financial choice. The ideal property can satisfy your needs for many years, but making a rash decision could result in unexpected expenses, delays, or legal issues. Before signing or making a sizable payment, seek independent legal and financial advice. Use these guidelines as a practical reference.
Be clear about your goal
First, decide why you are buying. A home for your family should be near work, schools, hospitals, or relatives. A property purchased for investment might need to provide good rent, have people wanting to buy it again, or have the chance to increase in value over time. A plot or commercial property might have different rules and risks compared to a ready-to-move home.
Write down what you need and what you would simply like to have. For example, having a good location and a safe building might be really important, but things like a gym or a clubhouse might not be necessary. This can help you compare properties without letting nice ads or a lot of features distract you.
Set a budget
Don't base your decision on how much you can afford just by looking at the price listed for the property. Include the down payment, home loan costs, stamp duty, registration, brokerage if needed, legal fees, moving costs, repairs, and any monthly maintenance charges. Costs and taxes may be different depending on the state, city, type of property, and the specific transaction, so it's important to look up the current local fees before planning your budget.
If you want to take out a loan, think about how much you'll need to pay each month and include that in your list of usual bills. Leave space for unexpected events, price changes, and times when money might not come in as expected. Getting a loan approved doesn't automatically mean that the monthly payments will be easy for your family to handle.
Research location
Check out the area at various times of the day, like when there's a lot of traffic. Check the time it takes to get around, how the public transport works, the condition of the roads, where the shops are, the nearest schools, hospitals, water availability, how rainwater is managed, garbage pickup, and how good the mobile signal is. Talk to the people living there about the power outages, lack of water, loud construction sounds, and problems with building upkeep.
See the area as it really is now, not just how it looks in a brochure. A promised road, metro station, park, or other facility might not be finished by the time you expected. If you care about future development, check with the proper government plans or officials instead of just trusting what a salesperson says.
Check the property's documentation
Before you pay a large deposit or sign a contract, have an independent property lawyer review the documents. Depending on the property and its state, the checks may include the seller's ownership papers and past ownership details, land or property records, required approvals, property tax documents, and any loans, claims, disputes, or rules that could affect the property.
For a new project, visit the appropriate state RERA portal to complete the required registration. Check the project's registration information, approvals, stated completion dates, legal ownership details, any restrictions or claims on the property, and the documents related to the agreements. RERA registration can provide helpful information, but it shouldn't be used instead of getting a separate legal check. The rules for registering a project and any exceptions can be based on laws and local regulations.
If the property is ready to move into, check if the necessary completion or occupancy certificate has been given by the proper government office. For example, MahaRERA's guidance for buyers says they should look at the project documents and check the occupancy certificate when they take possession of the property. The specific authority and requirements can be different depending on the state and the property involved.
Understand what exactly you are buying
When looking at a flat, compare the carpet area—the actual living space measured as per RERA guidelines—with the numbers given in the sales brochure. Check the written papers to make sure you have the exact details about the unit, which floor it's on, how the parking is set up, if there are any rights to a balcony or terrace, storage options, and how you can access the shared spaces. The RERA Act explains what carpet area means and asks developers to share information about the carpet area of each apartment in their project.
Check the plot's edges, the size measured, what it can be used for, if there's a road to get in, and if the plan and building have all the needed permissions. Always check that the description in the agreement for any property matches exactly what you saw during the inspection of the unit or land.
Inspect the building and facilities
Check the property yourself, and if you have any worries, it's best to bring in a qualified engineer or building expert. Check for water leaks, cracks, uneven surfaces, poor workmanship, drainage issues, broken or stuck doors and windows, and problems with the electrical or water systems. Ask about the water supply, power backup, lifts, fire safety measures, parking facilities, security systems, and building maintenance.
When buying a property to resell, check how old the building is, what repairs have been done before, what maintenance is needed now, if there are any fees for the building’s community, and if there are any big costs planned in the future. When starting a new or partially built project, check what features were promised against what is really listed in the agreement. Do not rely on verbal assurances.
Check the builder and seller
Check who the seller is and make sure they have the right to sell. For a builder, check their previous projects, how they delivered before, any complaints they've had, if there were any legal issues, and where the current project stands. A good reputation can offer some comfort, but it doesn't replace the need to review the project's papers and official approvals.
If a broker or agent is involved, make sure you know who they work for, how much they charge, and when you need to pay their fee. Ask for important statements like when the item was owned, what fittings are included, parking details, or any special offers to be written into the relevant documents.
Read the agreement carefully
Before you finalise your agreement, make sure to check the total cost, how and when you'll pay, any taxes or extra fees, the date you'll take possession, the exact details and features included, what happens if there's a delay, the terms for canceling or getting a refund, what you need to do to maintain the property, and what will happen if the actual size or the promised facilities are different from what was agreed upon.
Check the agreement against the project details and the draft agreement found on the appropriate RERA portal, if needed. MahaRERA's guidance specifically tells buyers to compare the promoter's agreement with the uploaded draft and check the title, encumbrance, amenities, and project information.
Plan for construction and possession risks
A property that is still being built might take some time and could face delays. Check the given finish date and project progress, and consider where you might live if taking possession takes more time than expected. Do not think that the date of possession mentioned in marketing materials is the same as the date written in the signed agreement.
Before taking over the unit, check it thoroughly and write down any unfinished tasks or problems you find. Make sure all the necessary certificates and papers are ready, and know what steps to take if you need to report any problems after you take possession.
Consider resale and rental demand
If you're buying property to invest in, you should figure out how much rent you can probably get by looking at similar properties in the same neighbourhood. Before deciding if renting out a property is a good idea, subtract all the ongoing costs like maintenance, repairs, taxes, empty periods when the property isn't rented, and the money you pay for the loan. Then see if the income from renting is still worth it. Future price rises are not certain; don't base your purchase just on the hope that the value will go up quickly.
Even if you intend to live in the place, think about how simple it might be to sell or rent the property in the future. Location, access, building condition, legal clarity, and ongoing charges can all affect a future buyer’s interest.
Check tax and payment requirements
Use payment methods that can be tracked, and save all your receipts, the signed agreement, bank statements, and tax papers. When you buy or sell a property, you might need to handle taxes and complete some paperwork. For example, the Income Tax Department gives advice on how to report TDS when buying property, and the correct form and rules used can depend on when the payment is made or the credit is given. Before making any payments, make sure to check the latest official information or talk to a tax expert.
Also make sure to check any special stamp duty and registration rules that apply in your state with the proper government office or a trusted expert. These charges need to be included in your overall budget, not something you think about later.
Final checklist
Before committing, make sure you have:
Set your goal and a budget that feels right for you.
Visited the location and inspected the property.
Checked the seller's rights and had the ownership papers reviewed.
Checked the necessary RERA details, approvals, and certificates related to possession.
I have verified the area, unit or plot limits, amenities, and overall fees in writing.
Read the complete agreement and get legal advice from an independent lawyer.
Plan for paying the loan, handling taxes, taking care of maintenance, and allowing for any possible delays.
Note: The best way to stay safe is to take your time with the paperwork part. If a seller makes you feel rushed to pay right away, won't give you the papers, or talks about something that's not in the written deal, take that as a sign to slow down and check things out—not as a reason to move quickly.
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