Buying and selling property in times of Coronavirus

Buying and selling property in times of Coronavirus

The first and foremost thing to do while buying and selling a property in times of coronavirus is to ensure safety and take all precautions while inspecting the property.

Investment in property has always been marked with uncertainty. The fear of unknown looms large in case of real estate investment. It is more so today in times of coronavirus where the normal life itself seems far away.

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Prevalent situation:

  • With coronavirus around, job security has become a significant factor for buyers. One would prefer a loan to buy a property only if the regular flow of income is ensured. Even banks will hesitate to provide a loan if the current job does not depict the steady future flow of income and repayment is doubtful.
  • Buyers are avoiding site visits and postponing the decision to make real estate investment.
  • The property prices have not fallen as expected due to Coronavirus. Prices have remained stagnant as builders have maintained the prices although there has been a fall in demand. There is hope for revival. The low price is negotiated on case to case basis in places like Mumbai, Gurgaon.
  • The falling prices favour buyers. Those who have finances available with them can buy property now. On the other hand, sellers may not like to sell at this time. For them, wait and watch is the best policy. However, some sellers may opt to reduce prices to get through the sale.
  • Coronavirus has brought to halt the construction services as well as sales. For the ongoing projects, the buyers doubt if the developers would be able to meet the deadlines. The developers have reduced prices to some extent, depending on the profit margins. There are attractive offers like flexible payment schedules. However, the same is not helping much, as jobs have been hit hard. Consumer sentiments are playing a more significant role than the prices.
  • Coronavirus has led to work from home on a large scale. The demand for office space has reduced. It has impacted the buying of property for office stations at least for present times. It can even affect the future commercial real estate deals as many companies are thinking of reducing their infrastructural cost.
  • The measures taken by the government to inject the liquidity and simultaneously the policy of the bank imposing moratorium on loan repayment will help the developers and buyers in cash flows.

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Consumer sentiments and Property price both have a role to play. If buying and selling a property is need driven, an individual will go ahead although carefully. If buying or selling of property is for investment purposes, one has to analyze various factors which influence the decision process even during a pandemic like Corona.

During this pandemic the following factors have to be kept in mind:

  • the current price of a property
  • current interest rates
  • bank policies for advancing loan
  • expected growth of the property market
  • revival of economy
  • Governmental assurances and policies
  • Job security – ensuring a regular flow of income

Ultimately what will happen in property markets depend upon consumer sentiments, job security and government policies.

As a top legal property management firm, we assist NRIs in property search and help them in all the property solutions. Our real estate services caters exclusively for the NRI investors wanting to buy and sell property during these unprecedented times. Contact NRI legal services for free legal advice on matters of sale and purchase of property.

Recommended reading: NRIs and Commercial Property

We provide an extensive range of services for residential, agriculture and commercial property’s sale and purchase. Even in these COVID times, our legal firm, with all the precautions, is trying to assist the Indians settled abroad to get their property related issues resolved to their benefit.

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Before you Buy a Property in India

Buy a Property FAQs

To buy a property or land that’s for sale in India is a great investment opportunity but there may be some questions that arise while making the decision. Some of the questions and their answer are as follows:

How can one acquire ownership of a Property or land that’s for sale in India?

One can acquire ownership of an immovable property in any of the following ways:

  • By inheritance of ancestral property
  • Through Will
  • Acquisition by oneself such as purchase etc.
  • Through gift, trust, settlement deeds
  • Grant by the Government
  • Through partition deed
  • Through decree of Court

In simple words, there are two ways of acquisition:

  • By the act of parties.

Example: Purchase, Gift, etc.

  • By operation of law

Example: Inheritance, the decree of Court, etc.

What are the things to look for when selecting a Property or Land for sale in India?

There are various aspects that the buyer should consider at the time of selecting the property. The major factor is price which is governed by demand and supply and may vary on a project to project basis other than this the other concerning agents are –

  • the budget
  • the type of property
  • the location
  • the objective of buying

What are the various documents involved to buy a property?

It is important to know all the documents involved in the process of assets.

1.  Check

  • that the Title is in the name of the developer/builder
  • the builder has all the licenses, approvals, development rights
  • the marketable title of the development
  • the provisional layout or building plan of the property
  • the strength of the foundation of the property
  • the carpet area of the asset, Built-Up Area & Super Built-Up Area
  • if the allotment letter or the sale agreement was duly executed
  • if the project is approved by reputed financial companies which can help in getting financial loans if required

2. Ensure that the conveyance deed is registered. The deed is a signed legal instrument that shows a deed or title has been transferred. It is signed, witnessed, and notarized by the seller and the buyer

3. Ask for Completion Certificate

Checking all the documents related to the property is imperative to buy a property or land that’s for sale in India. The documents such as Deed of Conveyance, Land registration status, Mutation Certificate, Land Sanction Plan/layout, and Payment Schedule along with the origin of the property,  Occupancy Certificate, various sanctions from the authorities, the chain of Title, Completion Certificate.

What is a Sale Deed?

  • The Sale Deed is a legal document which transfers the ownership of the property or assets in exchange for consideration or a price paid from seller to the buyer.
  • This instrument has to be mandatorily registered with Sub-Registrar office following this ownership gets transferred to another person.

What is meant by Carpet Area, Built-Up Area & Super Built-Up Area?

  • Carpet area is the precise area enclosed within the walls, i.e., the exact area to lay the carpet (wall to wall). This space does not include the thickness of the inner walls. It is the area that one uses.
  • Built up Area are the carpet area and the thickness of outer walls and the balcony.

Super Built up Area includes all the area that is considered as common area and the built up area. Areas regarded as common areas are the lobby, lifts shaft or elevator, staircase, the corridor outside the flat, etc.