If you have bought a new home, congratulations!
Buying a real estate property is undoubtedly the biggest financial transaction that you might have taken till-date. The entire process of purchasing a home/plot is tedious and time-consuming. From spotting the right location to funding and finally getting the Registration of Property done involves lot of smart decision making.
Now that you’ve made it through property hunting and the closing of the deal, you might think it’s time to kick back, relax and enjoy your new place (if you have bought a house/flat).
Don’t get too complacent, though. You will need to take some immediate action to make sure you are a successful property owner now and, in the years, to come. There are many things that require your immediate attention after the property has been transferred in your name.
10 most Important Things to do after buying a Real Estate Property
Here are some of the first things to do when you buy a new real-estate property, be it a plot, flat, house or a commercial property.
- Keep your property documents safe & secure :
- Firstly, check if the data in your registered Title deed is correct and accurate. Please note that any changes in the Sale deed require an ‘Endorsement’ which has to be signed by the Seller (previous owner). So, its advisable to cross-check the data in your Title deed once again.
- Make sure you collect all the documents of the concerned property in original from the seller. (You can have a look at my article on the ‘checklist of property documents‘)
- If you have taken a home loan, make a list of documents that you have submitted to your bank. On the day of the execution of the sale deed, you must have handed over the original sale deed to your banker. Don’t forget to take a photocopy of your latest Sale deed before submitting it to the Lender.
- In case, you need a true copy of the registered Sale deed for your reference, you can get it from the Sub-registrar office.
- Make photocopies of all the documents including the Title deed that is in your name. Digitize the documents and save them in a secured cloud set-up (Google drive, one-drive etc.,).
- You can keep one set of photocopies in your bank locker (if you maintain one).
- Apply for Encumbrance Certificate :
- You can apply for EC to cross check if the Registration was done accurately in your name/banker’s name. It is advisable to get EC after a week or so (from the date of Registration of Property).
- Get Utility Services transferred in your name :
- If you have purchased a constructed property (home/flat/building), get the electricity and water meters transferred in your name. Kindly note that you may require no-objection certificate (NOC) from the previous owner (seller).
- Make sure your personal details (name, address & contact details) are captured accurately in the utility bills. It can be a daunting task to get the data updated at a later date.
- Get Property Revenue Tax records updated in your name:
- Mutation is the change of title ownership from one person to another when the property (land/building) is sold or transferred. Please note that Registration and Revenue departments are two different entities. And, the process of Khatha or revenue tax records updation has not yet been automated in majority of the States in India. So, you need to get this done manually.
- By mutating a property, you get the title of the property recorded in your name in the land revenue department or with the civic body (Panchayat/Municipality/Corporation).
- I have seen many buyers facing lot of issues while getting the revenue tax records updated. So, its advisable not to postpone this work and try to get this done as soon as possible.
- For more details on mutation process, you may go through this comprehensive article @ ‘What is Mutation of Property? How to apply for Mutation of Property? ‘).
- Get your name updated in Society or Welfare Association records :
- You can submit a copy of the Sale deed to Society or RWA to get the name updated in their records.
- Keep the Contact numbers :
- Don’t lose the contact numbers of the Seller, his/her heirs, neighbors, Lawyer, Agent, helpers etc.,
- Trust me, you will need their help in future too.
- Property Insurance :
- You can have a look at getting your new house/building insured against various risks.
- Property Maintenance :
- If you have purchased a vacant plot or an agricultural land, get the fencing or compound wall constructed. This is highly recommended for the property owners who do not reside near to the newly purchased property.
- If required, you can get the CCTVs installed.
- Keep the contact numbers of the neighboring plot/homeowners.
- Income Tax Returns :
- If you have purchased a property, it is not required for you to declare it in the ITR.
- However, if your annual income crosses Rs. 50 lakhs after tax deduction then you will have to declare your assets and liabilities in the ITR, including the property you recently purchased.
- In case, you have taken a home loan, you can claim tax deduction in your ITR.
- If you are receiving income from property, then you need to disclose it in your tax assessment.
- Make a Will :
- Last but not the least, advisable to make or update your WILL with the details of your newly bought real-estate property.
I tried my best to cover all the important things that a new property owner needs to do. I hope you find the above information useful.
- Checklist of Important Property Documents in India | Legal Checklist before buying a Real Estate Property
- Lost your Property Documents? How to apply for Certified Copy of lost Sale Deed?
- Top & Best Home Insurance Plans – Details, Comparison & FAQs
(Post first published on : 18-Jul-2023)