Common Mistakes to Avoid During Property Handover as A Seller and Buyer
Congratulations on making a successful real estate transaction! Wouldn’t you like, as a seller, to see your profit secure and growing by investing in a new promising property? As a buyer, wouldn’t you like to get a seamless transfer of keys to sustain the excitement of home ownership? Both selling and buying a property come with a mix of excitement and satisfaction. I know the excitement is palpable for both. But, is your profit made from property selling safe? Is your satisfaction as a buyer going to remain intact even after making 100% payment of the price and associated fees? Amidst all the excitement and anticipation, it’s crucial to make the property handover process complete in line with legal and personal requirements, leaving no scope for future problems. Missing the key steps or overlooking details during property handover may lead to critical issues later on for both seller and buyer that can be avoided. In this blog, I will highlight some common mistakes often committed during the property handover from the buyer’s and seller’s perspectives.
Common Mistakes Often Committed by The Seller During the Property Handover
Not Verifying Funds: Before you hand over the keys to the buyer, you should make sure that the funds for the purchase have been transferred and cleared to your account. If you hand over the keys without verifying the funds, the risk of losing your profit or a delay in payment receipt may take the pleasure away.
Not Reading the Contract Terms Carefully: The contract between the buyer and seller specifies how and when the keys will be handed over. For example, some contracts bind the seller to vacate the property up to a certain date and time, or to leave certain items or fixtures as part of the property. Some contracts allow the buyers to do a final inspection before receiving the keys. You should review the contract carefully to avoid any disputes or claims after the property handover.
Ignoring Documentation of The Key Exchange: When handing over the keys to the buyer, it is necessary to document the key handover process and get a receipt from the buyer. Documenting the key exchange avoids any confusion or disputes about the possession of the property, when the final property transfer occurred, and in what condition the property was handed over.
Not Communicating with All the Stakeholders: Handing over keys to a buyer involves coordination and communication with all the stakeholders, such as the real estate broker, the lender, the tenant, the advocate, the local community welfare society, and the other agent. It is your duty to inform everyone concerned about the key exchange. In addition, you should also confirm that you have removed all your belongings from the property.
Not Being Courteous: Handing over the property keys to a buyer is not only a business transaction; the process is personal and emotional. You should behave like a professional, respecting the seller, and keeping the scope of communication in the future. If you are a real estate investor, a satisfied buyer may help you sell your next property fast by giving a referral.
Not Collecting and Digitalizing All the Documents: Property-related documents are important for you even after selling the property. All the documents related to the property and sale should be stored safely; better, you should digitalize these.
Common Mistakes Often Committed by the Buyer During the Property Handover
Before we go ahead, it is important to understand what home possession really means. The possession process for a home buyer involves the transfer of property ownership from the seller to the buyer, including the physical possession of the property. The buyer may take possession of the property either on the closing date or later, mutually agreed upon between the two.
In most cases, real estate brokers arrange one or two inspection visits throughout the property before initiating the buying process. The visits to the property prior to the start of the buying process are crucial. You check the property conditions and list the intact facilities, items, and features associated with the current property conditions that are supposed to come along with the purchased property. The home buying process is almost complete by the time you get possession of your house. Now you have completed the legal process of getting home ownership. The next and final phase is getting the physical possession of the property. Are you ready for the property handover? Don’t commit the following crucial mistakes just because of excitement-
Ignoring Digitalization of Property Documents: Your first step should be the digitalization of purchase-related documents. In addition, you should have at least 2-3 sets of photocopies of purchase-related documents before handing over the originals to the concerned bank in case the house is purchased with a home loan.
Not Checking Doors and Windows: Check whether the seller has provided all the doors and windows as per the conditions detailed in your pre-buy visit. If you are buying a home from a builder, check the doors and windows and their functioning as per the agreement.
Not Transferring Electricity and Water Meter Bills in Your Name: Electricity and water bills in your name are treated as proof of property ownership. Having them in your name is the initial address proof that you will need to make the required changes in the Aadhar Card and Voter ID as per the new address. Till the handover, the dues are paid by the seller, but you can initiate the process.
Don’t Overlook Property Tax Transfer: Many homebuyers feel that the registered sale deed is the only ownership proof of the property and often overlook the importance of updating the name in the property tax documents. Unless the new buyer initiates a change in name in the official property tax records and obtains a Mutation Certificate, all bills are generated in the name of the seller.
Not Getting Society Share Certificate Transfer: If you have purchased a home in a cooperative housing society, you need to secure the Society Share Certificate or get it transferred in your name. Many housing societies don’t allow new property owners to start renovation work until the owner has a society share certificate.
Not Getting Amenities Transfer Certificate: To enjoy the amenities like swimming pool, gym, club house, parking etc., you need a membership transfer certificate.
Real estate transactions are very critical for both sellers and buyers because they involve significant money transfers and complex legal processes. Even if you are an experienced seller or buyer, you need the support of expertise and experience to shape your plans. Here comes the role of a real estate broker. If you are planning to buy your first home or invest in real estate in and around Jaipur, Rajasthan, The Nestway Real Estate is a trustworthy real estate brokerage agency having proven specialization in providing tailored solutions for homebuyers, sellers, and investors. To have dependable support for first home buying or secure real estate investment, book an appointment with an experienced real estate professional. Call 8209377473 or email to info@thenestway.in .
