A Step by Step Guide for Buying Resale Property

Are you planning to buy your dream home but want immediate possession rather than waiting for the completion of an under-construction property? Then, a resale property could be the most viable recourse.

Resale property is an economical bet, as compared to opting for a ready-to-move-in property due to factors including depreciation, age of property, definite final cost of the asset, etc. But, purchase of a resale property has too many legal and technical implications and procedural requirements. Buying a home takes a lot of time, you need to find a home that’s right for you. A newly constructed flat in a huge building society might not be what you’re looking for. Perhaps, it’s an old home with a garden that you prefer, or one that’s in the heart of the city and has some history; resale homes have plenty to offer in these cases. But what is a resale property? What are its benefits? And how do you exactly register a resale property in your region?

What is a Resale Property?

A resale home is a home that was purchased and is ‘For Sale’ by the initial buyer. A resale indicates that the property is being sold to someone new from someone who was assigned the same property before. Essentially, the resale property can either occur from the first allotted or the beneficiary who had bought the same from someone else previously.

Why to Buy a Resale Property

Who does not wish to live in a house of their own? Buying a new flat will take a long time, so some of us may wish to settle for buying a resale property. Buying a resale house comes with a lot of benefits. Buying a house is one of the major financial decisions that we make in our lives. Due to surging property prices within the cities, most real estate developers are constructing new projects on the outskirts. This leaves potential buyers who want to stay in the core areas with limited property options. So they find it easy and beneficial to invest in the secondary market and choose to buy a resale house based on their preferences.

Benefits of Buying a Resale Flat

Resale properties are considered to be economically viable compared to buying a ready-to-move-in home as several factors such as the age of the property, the final cost of the asset, depreciation over the years, renovation required etc. bring down the cost. No matter what attracts you to buy a resale property, there are many benefits to buying a resale flat such as:


These homes are slightly older and will be found in the older neighbourhoods of the city. New flats are found on the outskirts and newer or developing parts of cities. These areas are well planned and already have everything in the neighbourhood that you would want.

Larger Houses

As the city grows, you’ll notice that houses are getting smaller and smaller. The older homes are spacious and tend to be much larger, have higher roofs and are still in the heart of popular residential layouts.

Ready to move in

You don’t have to wait for the construction to be complete, you don’t have to worry about setting up your internet, cable, gas connection etc. all those amenities will be in place. The previous owners will have almost everything you need in a house already up and running

Save on Taxes

Buying a resale house means less tax for you. According to the Income Tax Act, you can get a tax exemption of up to Rs.1 lakh (on principal EMI can be availed under section 80C of income tax act ). You can also get a tax deduction of up to Rs.5 lakh for home loan interest under 24B.

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How to Buy a Resale Flat/ Property

1. Consult Experts

It may be ideal to engage a good real estate agent to locate a resale property/flat. He would be in a position to locate sellers as well as guide you regarding the price of such properties in different localities. They would also be in a position to tell you about the seller of the property. Most real estate agents charge a fee and also help with registration, payment of stamp duty and other paperwork procedures for purchase for buying a resale flat/property. In addition, taking the help of a good lawyer would also help to make sure that things are clear legally also.

Meet your financial advisor, if you don’t have one, you can talk to your banker and seek his guidance. They will help you appraise the home and help you plan what is to be done with regard to your finances.

2. Check Title of a Resale Flat/ Property

Engaging with experts like real estate agents and lawyers will help you, but it is always better to be well-informed yourself when entering into deals and procedures for buying resale flat/property. The first step in buying a resale flat/property would be to establish the title of the seller; whether he is the real owner of the property/flat or has been given the power of attorney to transact the deal. All the documents with regard to the resale property/flat need to be clear. In addition, you need to make sure that all the original documents with regard to the resale property that were given by the builder or original developer are in order.

3. Check required documents for buying a Resale Flat/ Property

Buying resale property may seem great, but it could become a big problem if the documents regarding the original purchase and subsequent transfer of title are not properly stamped. Firstly, it could pose great problems especially if you want to apply for a loan for purchase of the resale property. Subsequently, it could prove to be unacceptable in case you wish to transact further on the property.

4. Check for Existing Loan

It is also necessary to make sure that the property documents are not lying mortgaged in the bank’s custody against a loan taken by the seller. The bank will consider a loan only once the loan taken by the seller is repaid and the documents released.

5. Check for Loan Eligibility for buying a Resale Flat/ Property

Buying a resale property would definitely provide you with a bigger space in case of older properties. However, it is best to note that some banks may not lend money on buildings older than 10 years. This may be due to the reason that they may not want to take the risk of the price of the property going down. Banks also make sure to ensure that the bank’s outstanding loan should always be lower than the value of the property in the market. Legal Assure offers a wide range of housing loans to cater to the varied needs of different sets of consumers. Our diversified portfolio of loan offerings includes loans for purchase of a new apartment from a developer or a development authority as well as for purchase of resale properties.

6. Check the Value of a Resale Flat/ Property

Next, it is imperative to note that the loan amount is highly dependent on the cost of the property. Technical experts would evaluate the property/flat. However, it would be useful to yourself avail the services of a property valuator at a small fee before approaching the banks. The bank’s property valuator may valuate the property at a much lower rate. They would also like to safeguard their interests against the fall in the price of the property in future.

7. Calculate the More Down Payment

Most banks wish to make sure that you be responsible for the maintenance and good upkeep of buying the resale property/flat. So banks would expect you as the purchaser of the resale property to pay a certain percentage of the price as down payment. You may have to pay about 20% of the price as down payment; property of 50 lakhs requires 10 lakh as down payment.

8. Know the Age of a Resale Flat/ Property

This down payment could be more in case of older properties. In addition, banks usually lend only on properties that are unto 50 years old. The tenure of the loan also decreases with the age of the property.

9. Know what to do in case of a Flat Society

The bank may grant the loan and you may make the down payment, but there could be another problem. It arises out of the need for some Flat societies that require the payment of a heavy price for change of ownership. It is best to consider this cost also when coming to a conclusion while purchasing resale property in cooperative and other societies.

Frequently Asked Questions

A resale home is a home that was purchased and is ‘For Sale’ by the initial buyer. A resale indicates that the property is being sold to someone new from someone who was assigned the same property before. Essentially, the resale property can either occur from the first allotted or the beneficiary who had bought the same from someone else previously. For example, a second hand flat in Patna will be considered a resale property.

Depending on the state and region, you need everything from a sale deed, mother deed, Katha certificate, tax paid receipt, Katha certificate, occupation certificate, no objection certificate from the bank, society, maintenance office, Aadhar, etc for a property resale.

A resale home comes at a lower cost, is ready-made, and you also get payment schedules for resale flats and tax benefits like a new home. However, the resale property may also be old needing maintenance, may not be eligible for home insurance, and you have an added cost of constructing new amenities.

To purchase a resale property, you need to present sale deed, building plan, completion/occupancy certificate, encumbrance certificate, and paid tax receipts, among others.

You can visit the online portal of your chosen bank and follow the instructions to apply for a home loan. The home loan application process is almost the same in both new and old property purchases. However, the set of documents and approval process may vary from bank to bank. You can also opt for our home loan package to enjoy pre-approved home loan benefits.

You must verify the age of the property and make a visit to check its physical condition. Additionally, you must check all the property-related documents, pending dues and the location factor with facilities available nearby.
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