3 Ways To Check Delays In A Real Estate Project
Project delays is one of the biggest challenges that the Indian real estate faces at present. According to market estimates, nearly 70 per cent of the total number of projects launched in an year run 18-24 months behind schedule. In this scenario it becomes crucial for a home buyer to track project development and understand about potential delay, if any.
- Authentication: Before a buyer invests in any project they should check that the developer has relevant documents required for building the project. These documents include land ownership detail, land being approved for residential development, project clearance and layout approval, environmental clearance, among others. All documents must be scrutinised before choosing a developer and signing a deal. Out of these the most important documents is the sanctioned plans (as this is obtained post the other approvals). If the sanction plan is verified while signing the deal one can go ahead with the builder. Here the Right To Information (RTI) act comes handy. Home buyer can file an application to the authority to verify land title, approved building plan and the completion certificate.
- Form an online group: In the absence of a regulator to safeguard the interest of home buyers, it is advisable that home buyers become a part of an online group. There are many such groups on Google and Yahoo. One can either start or even join an existing group. These groups help home buyers share their concern among other members and deal with the developer.
- Opt for a construction linked payment plan: This is the most important step to minimise the risk attached with a delayed project. At the time of signing a document with the developer, opt for a Construction-Linked Payment Plan (CLP). This plan is slightly expensive than flexi plan or Down Payment Plan but is best suited for home buyers in the current market situation. In CLP, the builder needs to be paid a certain amount post completion/achievement of certain pre-defined parameters. Here the builder needs to send the details about the status of the project along with the demand letter.