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Amid an economic slowdown caused by the Coronavirus pandemic, most prospective buyers have postponed their home buying plans, because of the uncertainty around income and employment. While it is true that the pandemic has made house ownership assume much greater significance, because of the safety and security that an immovable asset offers, not many currently have the financial wherewithal to afford a property, especially in India’s prime residential markets, where costs have touched prohibitively high levels.
In such a scenario, sellers who have already reached an agreement with a buyer to purchase his property, must now tread carefully and ensure that the pact reaches its logical conclusion. In case the buyer has applied for a home loan to make the purchase, a seller’s work increases manifold as they will have to prepare for a legal and technical verification of the property from the bank’s legal and technical team.
For the uninitiated, banks send a team to inspect a property for which they will lend money, to check its legal status and physical standing. Unless they are satisfied with the results, the team may recommend a rejection of the home loan application. This is why it is crucial for sellers to prepare their soon-to-be sold property for the site visit by the bank officials. Apart from arranging all property-related documents and making them available to the buyer, the seller must also pay attention to make his property appear worthy in the eyes of those who would verify it.
How to prepare a property for technical verification
Here are things you could do, to prepare your property for the technical verification:
1. A fresh quote of paint is a simple and cost-effective way to boost the appearance of any property. This should in fact be done before showing the house. In case that was a long time ago, get the house repainted again.
2. Dysfunctional switches and taps will also have a bearing on the value assessment process. Ensure that all switches are property working.
3. If the property has a lawn and a garden, considered to be one of the best advantages a property can offer in a city, ensure it is mowed and cleaned.
4. Do not forget to mention any repairs or renovations you have carried out in the recent past, to add value to the property.
5. Cleanliness is non-negotiable. A dirty premise may not have any great bearing on the mind of those assessing the property but would certainly make the stay unpleasant.
6. Ensure that the specifications noted by the experts match with the original specifications.
7. Even though technical experts are well-qualified to assess a property, they might not see certain advantages it enjoys, in terms of location, etc. Do mention those.
See also: How to choose the best bank for a home loan?
Mistakes to avoid, during technical verification of a property
Since the seller should also be aware of the don’ts, here are things you should not do at the time of property appraisal:
8. Do not hand over the property and other papers to the buyer, just because you cannot be present during verification. If it cannot be helped, send over a trusted representative.
9. Ensure that everything is in place so that the appraisal visit is not repeated. The buyer will have to pay again to the bank, in case the team decides to make another visit, because the seller was unable to provide a certain document.
Tips for technical verification of property
10. Be present when the legal-technical team of the bank makes its appointed visit to the property, along with all original property documents. Ensure that all the documents are arranged.
11. Any exaggerated or untrue statements that you might have made to impress the buyer earlier, pertaining to the size and condition of the property, would reveal itself at this juncture. Hence, maintain honesty right from the start.
What is property verification?
Property verification is a process followed by banks, before granting a home loan to a buyer, to check the physical condition and legal status of the property.
How can the seller prepare for verification of property?
A seller should ensure that the property is in a presentable condition and provide all the legal papers that establish clear title to the property to the verification team.
Who has to pay for legal and technical verification of property?
The cost associated with legal and technical verification of property is passed on by the lender to the home loan borrower.