Procedure of purchase

ONCE the project is identified and the necessary diligence is observed, one would need to identify a particular flat as per one's need and preference. Normally, in a project under construction, the developer may expect 15 per cent on booking.

An allotment letter is then issued to the purchaser. The developer will then get the agreement stamped by paying the relevant stamp duty, normally borne by the purchaser. Subsequent to this, the agreement is signed.

The developer will then organise the registration of this agreement immediately or in a month's time from signing the agreement. An agreement is registered to give it legal sanctity. The seller and the purchaser will have to go to the sub-registrar's office to lodge the agreement for registration.

If the building is in an advanced stage of construction, the developer may ask for a proportionate amount to be paid upon signing the agreement. Subsequent to this, the developer will inform you in writing regarding the stage of construction and will raise a demand for further amounts as the construction progresses.

It will be advisable for the purchaser to countercheck the stage of construction prior to making these payments.

*Purchase in resale: If the flat is purchased in resale where the society has not been registered originally allotted by the development authority, the following documents will be required to be checked:

Previous chain of agreements with past owners in original, with the receipt of registration/original letter of allotment issued to the first owner by the development authority. In case the latest agreement is pending registration, the original receipt issued by the sub-registrar acknowledging the pending registration needs to be taken along with a certified true copy of that agreement.

Original stamped receipts of payments issued to the previous and present owners by the builder/Development authority/society. Transfer permission from the respective authority, that is, Development Authority/Society Copy of Approved Plan and Occupation certificate issued by competent authority (such as the Municipal Corporation).

(To be continued)

(This guidance note is an attempt to help prospective buyers of property. It is for the limited purpose of information only. You are advised to consult your advocate/solicitor before undertaking any transaction/documentation. This information is provided solely for the sake of providing a broad overview to property transactions and the concepts and description of documents within this note are only general descriptions. HDFC undertakes no responsibility of determining the applicability and these concepts and documents in each case.)

(Source: www.hdfc.com.)