If you are looking for purchasing a property under auction then you will be finding a lot of good options, particularly in Sewall’s point. However, one of the most important things to look into this would be to take care of certain factors such as if the property is located in the right location or if there are schools nearby along with many other important necessities and many other important things like that.

And in the event where specifically a homeowner is at default then, in this case, the lender is specifically entitled to legally repossess the property. And such repossessed properties are ultimately sold off through physical as well as electronic versions of the auctions. Thus, before you decide to buy such an auctioned property, here are some of the precautions you would need to be taking.

Check For the Outstanding Municipal Tax and Society Dues

Generally, it has been seen that by default the payments of the EMIs for a home loan is another person’s last resort as well. Thus, it is quite likely that the homeowner must be at default when it comes to paying the local taxes as well as the society charges.

And since the properties are quite sold as where they are based then it becomes the responsibility of the prospective buyer to discharge such outstanding dues as well.

And it is always quite certain that these kinds of outstanding amounts are to be particularly made by the property owner itself. However, bidding for the property without any kind of knowledge would be a liability altogether. This is an important point for purchasing a real estate property.

Legal due Diligence (Another important point)

And in case of a property which needs to be auctioned by the bank, then, in that case, the legal titles are not at all with the bank.

Moreover, the bank would not take responsibility for the title as it does not become the owner of the property which is simply because it has taken the possession of the property.

Thus, when specifically buying the property under auction or otherwise the ownership of the very title to the property is duly missed and needs to be investigated by a lawyer. And this may or may not increase your cost quite a little. But then it is quite better to spend more money early on than owing to the regular hassles.

Arrangement of Funds

Thus, if you are having an under-construction property or even a ready flat, the payment schedule is quite generally convenient and is decided on the basis of the mutual discussion as well. But if there is an auction then your bid for the property would be successful.

You have to pay the balance amount as a relatively shorter notice. And in case, if you default then you may be losing the money at your earliest.

Moreover, you might be able to get a home loan for such kind of property. But for that, you will have to specifically arrange for the full auction amount first from your own sources and then the home loan lender would be issuing a check to you. So, if you are looking for homes for sale in Sewall point then you will be able to find a lot of good options.

TDS on Purchase Consideration

Moreover, as per the provisions of the income tax laws of the state, the home buyer would need to deduct the tax at the source at a rate of 1% from the purchase consideration. And in case the value of the property from the bank which needs to be deducted and credited to the account to the original owner. Thus, you would need to particularly obtain the PAN details along with the copy of the original owner of the property as you would be needing to specifically credit the TDS to PAN.

Conclusion: If you are considering about buying a real estate property under auction then there are certain things which you should be knowing about in the first place such as TDS on purchase consideration, the arrangement of funds, legal due diligence etc.