Author: Mr. Anoop Kumar Bhargava, CEO and Director, Empire Centrum
Buying a property in an under-construction project may seem like a great deal because of the tons of advantages portrayed in glossy advertisements. Under-construction properties are priced at a lower sum in comparison to possession-ready buildings, there is much more payment flexibility and last but not the least under-construction property have a varied range of schemes, offers and freebies on them.
However, despite all these added benefits, purchasing a property at nascent stage is a risky affair. Delay in possession is one of the most frequent problems in under-construction properties, even worse several projects get stuck due to various factors leaving a long trail of legal battles for the home-buyers and a position of stand-by for years before they can get the possession.
Therefore, if you want to avail the benefits of an under-construction property yet avoid falling into a property façade these are the things you must know and keep in account— delay in completion is one of the most worrisome issue of all time. Often builders go through scarcity of funds or they fail to obtain approvals from building authorities and the project goes on a halt. Several soft-launch projects get cancelled due to incompetency of the builder, in such situations the home-buyers are worst-hit because their money gets stuck. Sometimes builders deliberately delay the construction due to unfavourable market conditions so it is imperative to be cautious before selecting a builder, verify their track record and get information about their previously completed projects. Home-buyers should ensure the proprietorship of the developer/seller by conducting title diligence over the property.
Also, one must make sure to get an independent legal report of the project and check basic details about the land like if it is registered under RERA (Real Estate Regulatory Authority) and has environmental clearance etcetera etc.
Home-buyer, before investing into any property, should be aware of their rights under the consumer protection act, by doing they will not only be acquainted with all the intricacies of property-buying but also know the legal redressal in case of dispute. It is also noted that regular site-inspection is also very crucial so that the progress can be ensured.
In case of home loan, home-buyers should make sure if the project is approved by the specific bank and all formalities are complied with.
The next important point is to keep account of all transactions and take receipts for all payments from the builder. Once a certain percentage for allotment is disbursed, the home-buyer should ensure to get the allotment letter with all details about the property along with the payable amount.
Buying an under-construction property also gives the liberty to choose in terms of floor or the facing-view, so one can ask the builder for these options and apprise him of their preferences beforehand. In several projects there is also an option for customization, so the builder can be approached all this.
Under-construction projects are pretty risky to deal with but with right kind of information one can benefit a lot by purchasing properties that are still under construction. The only key is to evaluate the pros and cons and make informed choices. The buyers must carefully evaluate the Developer’s Brand equity, credit worthiness and financial health. They must make sure to verify the track record of the developer and check title clearance of the said project. They must also confirm that the developer has taken all legal approvals before the launch of the project such as RERA certification, fire and environment clearances, Municipal approvals etc. These are few very important steps which buyers can take to safeguard their interests and also make smart and safe investments.