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A Guide to buy your first home in Today's Market

Updated: Apr 2, 2023

Buying a home is a big decision, and it can be overwhelming, especially if it's your first time. Here's a step-by-step guide to help you navigate the process of buying your first home in India:


1. Determine your budget:

Before you start looking for a home, it's essential to determine your budget. Calculate your income, expenses, and savings to determine how much you can afford to spend on a home.


2. Select a location:

Consider factors like proximity to your workplace, schools, hospitals, and other amenities while selecting the location. The location should also be in a safe and secure neighbourhood.


3. Research the market:

Once you have set the budget and location, research the real estate market in the area, where you want to buy a home. Check online listings, local newspapers, and consult with real estate agents to get an idea of what's available and the average prices in the area.


4. Choose the type of property:

Decide whether you want to buy an apartment, penthouse, villa, or independent house based on your budget and preferences.


5. Check the developer's reputation:

If you're buying a property from a developer, do some research on their reputation. Check their track record, the quality of their work, and their financial stability.


6. Verify details on RERA website:

If your project is RERA registered project, please verify project details, Title documents, Plans, Agreements, Specifications, Disclosures, and all other details and documents uploaded by developer on RERA website.


7. Approved Project Financial (APF):

Before investing in a project, please ask for APF numbers. If developer has APF with all leading bank and financial institution, it will give you comfort with respect to the Title of the project.


8. Verify legal documents:

Verify all the legal documents related to the property, including the title deed, NOC (No Objection Certificate), Plans and approvals received from local authorities. It is essential to ensure that the property you are buying is legally clear & marketable.


9. Vaastu and Numerology:

If you and your family members believe in Vaastu and numerology, please get this checked before further discussions on the deal.


10. RERA Carpet:

Buyer should always ask and understand the RERA carpet Area

As per section 2(k) of RERA Act, "carpet area" means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

Explanation.— For the purpose of this clause, the expression "exclusive balcony or verandah area" means the area of the balcony or verandah, as the case may be, which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and "exclusive open terrace area" means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee;


11. Understand Entire Cost Sheet:

Understand the Cost Sheet and its detailed breakup including but not limited to taxes being levied on the transaction. Buyer should verify other charges & deposits (for eg. Electricity deposit, club house charges, infrastructure charges, Advance Maintenance, Monthly Society Maintenance amount etc. etc. ) very carefully. Buyer should also understand the Stamp Duty, Registration Fees and any other cost leviable on proposed transaction.


12. Negotiate the price & payment schedule:

Negotiate the price with the seller or the developer to get the best deal. Buyer should also try to negotiate as much as possible on payment schedule that match his comfort and needs.


13. Advance Payment and Discount:

If buyer feels that Developer is very reputed and there is no risk in giving advances and Buyer has good amount of money in hand then buyer should negotiate on price by offering advance payments. This can also save your GST, Stamp Duty etc.


14. Get a home loan:

If you plan to take a home loan, shop around for the best interest rates and terms. If You can also consult with a financial advisor to determine the loan amount and repayment period that suits you. It is always advisable to take home loan even if it is a small amount reason being the lender will always check the title and technical documents before loan disbursement, this will really help you to identify the defect in title & other documents, if any.


15. Make the payment:

Once you have finalized the deal, make the payment by cheque or bank transfer. Take acknowledgement of receipt from Seller or Developer.

Generally, TDS @ 1% to be deducted u/s. 194IA of the Income Tax Act, if agreement value and other charges as mentioned in section 194IA is more than 50 lakh Rupees. In case of non-resident seller, TDS is required to be deducted as per provisions of section 195.

Before making payments, please consult your Chartered Accountant for applicability of tax deductions while making payments/ agreement registrations.


16. Allotment Letter:

Buyer should always insist developer to issue allotment letter at the time of initial payment or at later stage as per agreed terms. Allotment letter generally covers all the important terms of the deal.


17. Agreement for Sale and Sale Deed:

Before making any payment in excess of 10% of agreement value, buyer should execute registered agreement with seller.

Agreement for sale is not an actual transfer of property ownership but it gives a right for the purchaser to purchase the property in question on the satisfaction of certain conditions.

Sale deed is an actual transfer of property ownership



18. Take possession:

Once the payment is made, take possession of the property and verify that everything is in order.


Buying a home can be a long and tedious process, but with proper research and planning, you can find the perfect home for you and your family.



Disclaimer: The contents of this article should not be constituted as opinion. The contents are merely personal views of the author and provided for information purpose. Readers are requested to refer all the legal provisions. Author/Site Owner is not responsible for any loss, damages caused. Further, this is not an advertisement by professional involved.



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