Every precaution should be taken before closing a deal. By the very nature of things going for a perfect house is a stupendous task involving, scouting different locations, ensuring availability of funds, protracted registrations, location inspections, etc. Having passes through these initial hurdles and finally zeroing in for a house, the buyer should be extra careful to ensure that nothing goes wrong during the closing phase.
Here are some crucial points which need to be borne in mind before the final transaction in acquiring a property.
Terms and conditions of commitment letter
It is absolutely necessary to go through minutely the terms and conditions of the loan offer of the lender as mentioned in the commitment later. The letter will reveal the areas that need to be attended to before finalising the deed on your property. Any discrepancy or shortcomings not in conformity with the prevailing building code or zonal regulation have to be remedial by taking corrective measures. Generally, these are carried out by the seller.
As per usual practice, the closing date is set after the buyer’s mortgage letter or loan has been approved and the commitment letter is accepted. Particular care should be taken, so that the closing date is decided before your lender’s commitment expires. The buyer should also confirm the documents that would be required as well as the date, time and place at the time of finalising the deal. This would eliminate any chance of deal falling through.
Physical Survey of the Property
To confirm that the boundaries of the property are the same as detailed in the sale deed, the lender generally insists on survey and plan of the plot. The expenditure on this account is borne by the buyer but with prior negotiations, the seller may agree to bear the cost.
Precise Title of the Property
This must be thoroughly verified and satisfied. No objection certificate given by the competent authority should be perused. Municipal tax on the land/property clearly specifies the title holder. It is builders /seller’s responsibility to furnish the relevant documents to the buyers.
It would be prudent to have one ultimate inspection of the properly before sealing the deed. This will satisfy you that all the aspects have been attended to and nothing remains unaddressed. You should satisfy that the electrical appliances points and plumbing fixtures are in perfect working condition and all repair or renovations have been taken care of.
If the buyer considers the above points the closing deal will be hassle free and smooth.