Consumer Awareness

Good To Know : List Of Things Home-buyers Should Keep In Mind Before Buying A Home

From our friends at
LawRato

October 19th, 2017

SHARES

Homebuyers in India are facing chronic crunch with respect to delay in delivery of flats. Recently,  the National Company Law Tribunal(NCLT) has initiated insolvency proceedings against the real estate giants, Jaypee Infratech Private Ltd. and Amrapali Infrastructure. Due to the insolvency proceedings initiated against them homebuyers are left in a lurch because as per the Insolvency and Bankruptcy Code the interest of financial creditors have precedence over the interest of the homebuyers. Taking into consideration this bleak situation of real estate sector home buyers are fearful in investing in property.

Before you invest in real estate, here are the following points you shall keep in mind-

PART 1

Use RERA Website

  1. After the implementation of RERA, the developers are required to register their projects on the website. Visiting the RERA website will enable you to take informed decisions about your real estate developments.

You can look for a house at your desired location. If you are sure in which city you want the house say for instance if you are planning to buy an apartment in Mumbai, Maharashtra, then before buying the property log in to the state’s RERA website.

  • Click on http://maharera.mahaonline.gov.in  and
  • under the “Registration” tab click on the “Registered Projects”.
  • Post this you can conduct an “Advance search” and enter all the other details such as your
    • desired developer,
    • area and
    • the locality.
  • On the RERA website you can also search at the level of
    • division, district, taluka or even a village in which you are looking for a property.
  • The list of registered projects in your selected area will be displayed.

The benefit of investing into a registered project is that it gives you the entire detail about the developer and the project. In case if the developer defaults on delivery of flats then the RERA authority so established under the Act will take stringent actions against the developer.

PART 2

Know Everything About Developer

Before you choose to invest in any project you must do a thorough research of the developer. An homebuyer shall opt for a reliable buyer who has successfully completed some projects earlier. You should also take into consideration the time taken by the builder to deliver the flats and the quality of construction. You should also get hands on all the financial details of the developer, like its financiers, promoters and lenders.    


Know everything about the project-  Prior to deciding in which project you should invest in, check

  • whether the project has been approved or not,
  • what is the exact project layout,
  • carpet area,
  • clear title of the land

 


You should thoroughly examine all the documents related to the project. If you do not pay attention to the details of the project you are investing in, the developer can easily dupe you. For instance, if there is a clearance issue with the project you are investing in then it may adversely affect your possession.


You must also pay due attention to the expected projected timelines for completion of the project. If you are planning to buy an apartment in an under constructed project then you must take a note of how many units are already sold and how many are left. Also,take a note of current stage of the development and information on the support infrastructure like water, electricity and internal roads.

PART 3

Check These Documents

Here is a list of the documents that you should go through carefully when you buy a property-  

  • Allotment letter- This is given by the builder to the buyer and categorically mention the details of the price agreed between buyer and seller along with the payment and the construction schedule, house plan and date of delivery of the flat and problems faced after the possession has been handed over.
  • Original sale deed- Ensure that you must have a copy of the original sale deed between the developer and the first buyer.
  • Payment Challan- This is the proof of the payment deposited in the account of the seller by the buyer in the bank.
  • Possession Letter- It records handling over of possession of the property by the urban development authority or the seller to the present owner.
  • Completion certificate- It confirms adherence to municipal requirements and eliminates chances of demolition in the building.
  • No-dues certificate- This shows that no hidden charges will be levied on you later.

So before you invest your hard earn money in buying property get all the documents verified and safeguard yourself from the risk of fraud, defective title and fraudulent documents.

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