When home seekers visit flats
for resale, they tend to ask the existing residents a whole list of questions
on aspects ranging from the water supply to availability of maids. However,
they tend to miss out on confirming some of the most important aspects that
should actually be on top of their list of queries.
Flat may be already mortgaged
It is only after handing over
the token amount and signing the agreement that they ask for an essential
requirement – the original flat agreement and society share certificates.
That’s when the home seeker is
informed with a big smile that the papers have been misplaced and would be
‘found’ shortly. After a month, when the home seeker insists that he needs the
original documents to get a home loan, he is sheepishly informed that the
documents are already lodged with the bank.
The flat has already been
mortgaged by the existing owner and the original documents will only be
released after the bank receives the balance amount. Now the catch 22 is that
unless the original documents are released, the home seeker cannot get a new
loan and until he raises a new loan, the existing owner cannot repay the
existing mortgage!
If the bank officials are
accommodating they may transfer the existing mortgage to the home seeker but
that too is a lengthy process, which may not be feasible in all cases.
Society refuses certain communities
The problem begins after all
the payments have been made and the truck containing furniture reaches the
society gate. That’s when the buyer is informed that the society does not allow
flats to be sold to people from certain communities and the truck cannot enter
the compound.
Even if this hurdle is cleared,
the society may still refuse to transfer the flat in the name of the new buyer.
While this too can be resolved by approaching the Registrar of Societies, the
animosity generated will mean constant arguments and hostility with other
members, until the buyer finally moves out. Often dog owners too face the same problem.
Huge donation for transfer
There is a set amount beyond
which housing societies cannot levy transfer charges. However, in certain areas
there is a ‘voluntary’ donation without which the transfer does not take place.
While nobody puts it in
writing, new buyers are explained that their membership application will be
delayed infinitely unless and until they shell out the donation. Most existing
home owners do not reveal this fact while selling the flat for obvious reasons.
Parking not available
A major hindrance for any home
seeker is lack of parking space. Brokers try their best to arrange visits
during the afternoon, when a new buyer moves in, he finds that every possible
space is full of vehicles and his cars will have to be parked on the street.
Seller is not the owner
There have been instances when
a few months after the new buyer has moved in, a total stranger rings the
doorbell and asks what he is doing in the flat. That’s when the truth emerges
that the ‘seller’ was in fact a licensee who fooled the new buyer using forged
documents. In some societies, this happens in situations where the real owner
is abroad most of the year.
Huge expenditure on repairs
The building may seem in need
of repairs and just after moving in, the new buyer finds out that the society
had passed a proposal during the last AGM to undertake extensive repairs with
each member paying several lakh as their contribution. Again, this is something
the seller never reveals until it’s too late.
Home loan procedures
Getting the original documents
can be a problem if the flat has been resold many times. The society may not be
prompt in issuing a NOC, which could again delay the process and result in the
home seeker missing out on a great deal.
