Buying a flat? Ask these questions!

f you are buying an apartment in a co-operative housing society, there are a number of issues you will have to look into.

Before you offer a token amount (this happens even before you sign the cheque for the house), you must find out the answers to the following questions:

1. Do I have to pay a transfer fee?

The housing society will demand a transfer fee when a sale is done. The society will either charge the fee from the buyer or the seller or both. This is called a transfer fee.

You need to know:

Is there a charge being levied on you, the buyer?
How much is this amount?

2. What are the maintenance charges?

Societies levy maintenance charges on its members. These could be either monthly, quarterly or semi-annual payments.

The charges are based on the area of your home. They will generally cover the municipal tax, property tax, assessment tax, water charges, common electricity charges, elevator charges and charges for hired help, like the garbage cleaner and security.

Maintenance charges can be steeper if your society offers additional facilites like a garden, play area for children, swimming pool, gym or club house.

You need to know:

How much is the maintenance charge?
When does it have to be paid?
What is included in the charge?
What is not included in the charge? For example, car parking charges may be separate.

3. What other payments does the society expect?

Societies are forced to ask flat owners to make staggered (spread over a few months) or lumpsum payments for major repairs or paint jobs.

All members will also have to contribute to a 'sinking fund', that finances all heavy repairs in the building or its premises. The amount varies with each society.

You need to know:

Have major repairs been done in the past or are they planning some soon?
How often are such contributions made?
Has the previous owner made his contribution till date?

4. Will car parking be provided?

Check with the seller of the apartment if his/ her parking slot will be made available to you.

If your previous owner did not have a vehicle, speak to the secretary of the society and ask for a parking slot.

If space is a problem, there are likely to be rules about parking space. Parking lots also may be subject to availability.

You need to know:

Is there a parking slot available?
Do you have to buy it or pay a deposit for it?
How much are the parking fees?

Some societies also charge a nominal amount if you decide to keep your children's cycles in the compound or in the building premises like the passage.

5. Does the apartment need renovation?

If your renovation includes touching any of the load-bearing pillars, you will have to obtain municipal permission.

After all, changes in the civil structure can affect the building and may also create cracks and leakages. The managing committee of the society can object to the changes and some have even ordered that the work be stopped.

If you want to enclose a balcony or do some plumbing work, it is enough to get the society's permission.

Other work like replastering or a simple paint job do not require permission.

You need to:

Check the entire apartment carefully and if possible, take an engineer along.
Get an estimate of how much the work will cost you, should you want changes made.
Talk to the secretary about the various permissions and get his/ her view on it.

6. Are all the bills settled?

From the Date of Possession (when you obtain ownership of the apartment), all bills are your responsibility. Till that date, you must ensure that all the previous electricity and telephone bills have cleared.

Legally, documents like the electricity and telephone bills lend credibility to the claim of ownership if a dispute arises.

Also check with the secretary if all other society dues have been settled.

You need to check: