7 things to look for before signing a property deal.
The count of builders operating in Indian metros is on a rise. In this scenario a homebuyer may feel highly insecure to invest in a project, before scrutinizing the documents that prove the authenticity of the project. As a homebuyer what all documents are to be examined before signing a deal? How to verify them? Here is Makaan’s advice.
- The developer should be able to produce Approved Building Plan .Which needs clearance from the Corporation or the concerned authority.
- The builder has to get approval of layout plan from concerned authorities before starting construction
- Approved floor plan is also important
- Basic Amenities- The builder should get approval from concerned authorities for electricity, water for potable and non-potable use. The building should comply with building laws for sanction or approval of basic amenities.
- During construction of building, builder has to get No Objection Certificate from water and sewerage supply board, electricity board and pollution control board.
- After completion of project, builder has to get completion certificate from concerned authority to ensure that construction of building is as per the approved plan.
- The builder has to give proof of Clear title of property on which construction work is undertaken.
Many a times a homebuyer can observe that these important documents are swiftly shown or cleverly concealed by the builders while signing a deal. It is important for a homebuyer to check and cross check these documents before investing in the property; if any of these is missing or the clearance is denied it could lead to delay in project completion or some legal implication after possession. At times this also brings depreciation to the value of the property. In order confirm on this information about the property a homebuyer can adopt three ways.
- Visiting the local authorities: Home buyers can get some information by visiting the office of the local authorities that provide such approvals.
- “Google it”: Do a Google search on the project or the developers, and go through the reviews.
- Interact: Try to interact with the people who have invested in the concerned builder. Homebuyer can gather the first hand information from them.
In India there is no legal binding on the developer to share this information with the home buyers. Most property transactions in India happen without these facts being evaluated. The best resolution in such cases lies with the home finance company or banks that funds real estate projects. At the time of taking finance for a project from a bank; a developer needs to present the clearance papers to the bank for getting a sanction. For a home buyer who does not have enough information, it is best to avoid projects that are non-bankable. For home buyers who have enough information a slight risk taking is advisable specifically if the buyer is aware of the past track record of the developer.