Resale vs New Launch — Complete Comparison
| Factor | Resale Property | New Launch / Under-Construction |
|---|---|---|
| Possession | Immediate — move in right away | Wait 2–5 years for completion |
| GST | 0% | 5% (1% affordable housing) |
| Price | Market price — negotiable with seller | Builder price — limited negotiation |
| What you see | Actual flat — no surprises | Floor plan and brochure only |
| Infrastructure | Ready — society established, facilities operational | Under development — amenities may take years |
| Customisation | None — buy as-is (renovate after) | Some choice of fixtures, finishes |
| Legal risk | Title, encumbrances, dues — thorough check needed | Builder delivery risk, RERA protects |
| Appreciation | Steadier — established market price | Can appreciate during construction |
Resale Property Due Diligence Checklist
Must-Check Before Buying Resale
- Title verification: Seller is registered owner — check sale deed and EC last 30 years
- Outstanding loan: EC and CERSAI check — any existing mortgage must be discharged before/at sale
- Society dues: Get No Dues Certificate from society — no pending maintenance, sinking fund, or special levies
- OC verification: Building has Occupancy Certificate — no OC = legal and loan issues
- Property tax: All property tax paid up to date — verify latest paid receipt
- Khata/Mutation: Municipal records in seller's name
- TDS compliance: If sale price ≥₹50 lakh, deduct 1% TDS via Form 26QB
Related Terms
Frequently Asked Questions
Resale property is a property sold by an existing owner rather than directly by the builder. The buyer purchases from the previous owner in a secondary market transaction. Key advantages: immediate possession, zero GST, established infrastructure, and what-you-see-is-what-you-get. Key requirement: thorough due diligence on title, encumbrances, and society dues.
No. Resale property transactions are completely exempt from GST. GST applies only on under-construction properties (5%) and affordable under-construction (1%). A resale flat — regardless of age — has zero GST. This is a significant advantage versus buying an equivalent under-construction flat where you pay 5% GST on top of the purchase price.
For resale: (1) EC for last 30 years to verify clear title and no encumbrances, (2) Confirm any existing home loan is discharged, (3) No Dues Certificate from society for maintenance and sinking fund, (4) Occupancy Certificate for the building, (5) Latest property tax receipt, (6) Mutation/Khata in seller's name, (7) Deduct 1% TDS via Form 26QB if price ≥₹50 lakh.
Yes. Banks give home loans for resale properties subject to the same LTV limits as new properties (75–90% depending on loan amount). The bank does its own valuation — may value the property lower than the asking price, limiting your loan. The bank also checks title documents. Getting a bank loan on a resale property provides implicit (partial) validation of the property's legal status.
Not always. In areas with high demand, resale prices can match or exceed new launch prices. However, resale offers price negotiation flexibility — especially from distress sellers who need quick liquidity. Resale also saves 5% GST vs under-construction, which effectively makes resale 5% cheaper if prices are similar. Factor in renovation costs for older resale flats.