Checklist for Purchasing an Under Construction Property
With real estate booming in every part of the country, buyers’ sentiments have changed after the transformation of the sector under RERA. They are ready to buy units from an under construction property to reap the benefits of cost differences. Though, there are few things to take note of and check while buying a house from under construction projects. The following are the things to check and evaluate:
The land title of the property should be clear. This document gives the details of ownership, title, mortgage rights and obligations as an owner. Land title and their copy can be derived from online portals that are run by the authorities of the particular state. The RTI can also be evoked to get the title information.
Check the land use certificate:
Sometimes residential complexes are developed in a commercial or industrial zone. Check with the authorities if the land use certificate is intact and that the project lies in the residential zone. At times, the land in the discussion might also be in a converted zone. Project development gets interrupted or stopped completely if the proper land use certificate is not attained.
Check the clearances for construction:
- For any Under Construction Property, a certificate of commencement is legally compulsory. Issued by the development authority, the certificate is given only after serious inspections. If the certificate is present, it means that the builder has other important licenses and permissions for the building. Check if the developer has a certificate of commencement for the project.
- Also, ask for a building or layout plan from the builders. Fraudulent builders have the habit of launching projects without any approvals and permissions.
- Check the master plan of the area with the region’s planning development to verify the project’s credibility.
- Depending on the projects, there are different NOCs that should be in place. Some of the common ones are NOC from the pollution board, Environmental clearance, approval from the fire department and NOC from the airport and aviation authority if the project site is close to the airport.
Mrs.Bharathi, a CRM from one of the reputed builders with flats for sale in Tambaram, expresses that the customer knows a lot these a thorough knowledge in the whole process and it is easier for them to clarify things.
Tips to have in mind while signing the agreement:
Once the decision is made, there is a need to check many other documents for smooth transaction of the buying process. This includes the booking form, an allotment letter and the builder buyer agreement. Allotment letter and the builder buyer agreement are given after paying two to three instalments of the total cost. Ask for a copy of these 3 documents at the start of the buying process. Take guidance from a legal expert to go through the documents.
Once the construction of the building is completed:
- The completion certificate should be present. This is given by the government authorities and mentions that the project is completed according to the approved plans and under the mandatory guidelines.
- The occupancy certificate should also be present. This certificate validates the project has all the necessary features like power supply, water supply, sewage and drainage lines as per the plans.
Prior to possession:
- Register the property under the revenue department of the government. At this point of time, the developer transfers the property to the buyer’s name. Sales deed for the property validates the ownership.
- Get the possession certificate from the developer and go through the content carefully. Look for odd clauses that the builders have put in the possession certificate. Demand for an inspection of the property to make sure that the expectations are met.
- Also, check if the maintenance service agreement is fair and not one sided favouring the developers. This document contains the clauses regarding electricity, water and maintenance charges. If there is a common clubhouse and swimming pool, the terms and conditions for using those would also be present in this agreement.
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