Buying a ready to move flat, here are some guidelines to safegaurd your hard earned money.

In the wake of recent cases of bankruptcy & insolvency proceedings against big developers, home buyers have started repulsing from pre-launch home projects and instead buyers now more prefer ready to move in housing projects. In past years, very reputed & considered to be tycoons of real estate industry did not deliver the project on time and even construction was stalled due to developers showing inability to complete the project. Ready to move in project is a better option for home buyers as the project is not left with any construction, legal clearances or other approvals from government and stake holders. Here we share some guidelines which a buyer should pre check before striking the final deal.

1. If you buy from a renowned developer then worrying about paperwork is the least of your concern. Apart from ensuring that there is a builder-buyer agreement, date of registration, completion certificate, possession certificate, the buyer should clearly be also in the know about the allotted car parking number in the agreement.
2. The physical inspection of the flat before possession for any defects is a must. It’s advised to home buyers to engage an architect to measure the apartment and check the carpet area and also to ensure that the property is in accordance with the sanctioned plan and environmental laws. In case one can’t engage an architect due to financial or any other reason, the buyer should himself measure the size of the unit as much as possible.
3. Hiring of an advocate is recommended to check whether there is any encumbrance or cloud on the title of the property. If it’s not possible to hire a legal expert, he should secure a loan from a bank or financial institution since financial lenders generally does the due diligence of title of the developer before lending money.
4. The buyer should carefully go through the disclosure made by the promoter on the website of the project to ensure there are no litigation/impediments/encumbrances on the project and the rights of the promoter to sell the project to the buyer. The buyer should also seek full disclosure with respect to details of the project including entitlement to common areas and the rights in the undivided interest of the land.
5. Thoroughly check of the agreement to ascertain if the developer has retained any right towards any future development touching the property in question.
6. A buyer should check the amenities mentioned in the agreement by the developer have been provided. The buyer should check whether the parking space, terrace or open space of the unit are sold and/or exclusively granted to but not sold, an applicable law relating to such exclusive grant or usage.
7. A buyer should also check the mechanism and the quantum of maintenance and outgoings that he would require to pay for his unit.
8. Checking the builder-buyer agreement is mandatory. In the agreement, a buyer should check whether there is any restriction on future transfer by the allottee or is there any expenditure attached to future transfer. The promoter of the project is duty-bound to provide all such details to a buyer.
9. If you happen to buy a resale flat, you must look into the title documents, approvals, occupancy/completion certificate and valid and subsisting registration of the project and the promoter with the relevant real estate authority. Apart from checking the complete chain of builder-buyer agreement, cross verification of all the documents from the builder’s office and issuance of new builder-buyer agreement should also be done.

Buying a home is life time investment of people who save money by killing different aspirations so that their dream of having their own adobe could be completed. People losing their hard earned money is very painful. Though government has brought some strict bylaws which empower investor’s interest but we know sluggishness of judiciary & tribunals. So remember, precaution is better than prevention.