Resale guidance campaign draws good response

Chennai

Over 450 anxious buyers have thronged the HDFC’s resale guidance campaign held in the city during weekends to seek expert advice and guidance while investing in resale units. Among the criteria for selection of resale units, pricing was found to be the dominant factor. Then affordability came when they will have no other choice but to seek home loans.

The demand for resale units is not only confined to units located in city areas but also extended to suburbs and peripheral areas. However, the predominant demand is said to be for city units.

Homebuyers invariably had several queries to seek clarification ranging from the procedure for scrutiny of documents to identifying appropriate planning authority and ensuring that they get value for money while investing in resale units. HDFC’s initiative was more of a supportive exercise for resale unit buyers on various aspects from avoiding pitfalls to scrutinising basic documents prior to investment. A number of homebuyers have already submitted documents to seek home loans for resale units.

The overall response was quite encouraging as enquiries continued to pour in even after the show days, according to the company’s official sources. Lack of information on identification of appropriate authority to seek clarity on various issues governing investment in resale property are cited as major factors for the sluggish growth of the secondary market in the city, say industry experts.

From the stability point of view, verification on durability of the structure, electrical and plumbing works need to be checked with a professional, feels Oscar G. Concessao, a leading architect in the city. A thrust on maintenance services, no dues certificate from the association, demarcation of parking areas, etc are other areas that need scrutiny, he adds.

According to legal experts, even though there are no special safeguards required while investing in resale units, one vital factor that needs verification is the quality of construction. All other safeguards like validity of purchase from the previous owner/builder will have to be scrutinised even if the previous owner had bought it recently. “Any defective title vested with the previous owner or builder will continue to be passed on to the new buyer”, says S Vijayaraghavan, a senior corporate lawyer and a columnist. Change of ownership will not absolve the defect in the title as it is a very important factor especially while investing in resale units, he adds.

Yet another vital factor is that the buyers should ensure that any additional rights on sanctions by CMDA or other appropriate authority in the property is also passed on with a specific provision included in this regard. This assumes significance especially in view of the increased FSI eligibility announced by the planning authority in the city.

There are others who voice that apart from a technical evaluation, an approved valuer’s assistance should be sought to ascertain the intrinsic value of the resale property. This is because the tax authorities might contest the registered value should a need arises at a later date, feels R S Nambi, a consultant in the panel of World Bank and ADB.

In a gifted property, it might be for the family’s benefit in which case, the document scrutiny assumes significance. A minor’s property can be bought from the guardian but with the court order and the sale proceeds should to go the minor. It is advisable to obtain an undertaking from the guardian to the effect that the sale proceeds will go to the minor’s account, said Mr Nambi.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/resale-guidance-campaign-draws-good-response