One of the biggest investments that many people will make is in purchasing real estate. The home you have decided to purchase will therefore be a very large investment in your lifetime. To make sure that your investment is a success, you must become as knowledgeable as possible about your real estate purchase. If you don’t have enough knowledge, you may make a bad decision and purchase a piece of property that will cost you time and money. So, always do your homework before buying a property. To begin with, prior to purchasing any specific property, you must ensure you have all the information about the area that surrounds your property, availability and existence of social and physical infrastructure in the area, crime rate, planned projects, and other relevant details.
For many average home buyers, buying a home is about the price, location and amenities like club house and swimming pool. But one should give equal importance to other aspects as well. When you are buying a flat from a developer, you have to consider two aspects. One, the title. That is, you have to ascertain whether he is actually the owner. Secondly, you need to find out if the construction is legal and authorised.
If you are buying a flat in a building where the co-operative society has already been formed, you need to ask for three key documents — the seller's share certificate, a no-objection certificate (NOC) and a letter from the society, stating that the seller is indeed the owner of the property, and there are no liens against the flat and it is free from any encumbrances.
If you are buying an under-construction property, you must go through the approved sanction plan, IOD and commencement certificate issued by the municipal corporation. Again, the key is to establish whether the builder has clear ownership of the land on which the project is taking shape. "An agreement between the builder and the original owner is not sufficient. The project also needs to have an IOD. This is a set of instructions that a developer needs to comply with so that he can legally construct the project. It is valid for one year and needs to be reissued if the project has not been completed in a year's time.
If the construction is only partly complete, you need to exercise extra caution. If you are buying a flat on say the 30th floor, while the construction has been completed only till the 15th floor, you will not get the occupation certificate as the building is still under construction. In such cases, you must insist on seeing the commencement certificate, particularly for that floor.
Similarly, projects that are in the pre-launch stage need additional scrutiny too. It is even more necessary to establish the trustworthiness of the builder, especially in terms of his track record for transparent dealings and compliance with legal formalities. So while evaluating various projects in the region, they should look at the credibility of the developer, project specification and amenities offered, to do an apple to apple comparison. While comparing different projects in an area, consumers should look at the overall cost of the house and not just the advertised basic sale prices as there are additional costs like preferential location charges, car parking, power back charges that are charges over and above the basic sale price. One should also go through the construction specification and project amenities in detail as they have a huge impact on selling price.
When you are looking for a land parcel or an apartment then location assumes prime importance. One should take special care to note where the project is coming up and what kind of social infrastructure would develop in the vicinity of the project. Check if there is a public transportation system being planned for the region and, most importantly, check what is the reputation of the developer in terms of construction quality and delivery of the project.
Finding the perfect property for you can be a long process. Following op on all the important details can prove to be an intimidating thought for many. But while much time will be invested in research and inquiries about the property, the end result is worth it!
For many average home buyers, buying a home is about the price, location and amenities like club house and swimming pool. But one should give equal importance to other aspects as well. When you are buying a flat from a developer, you have to consider two aspects. One, the title. That is, you have to ascertain whether he is actually the owner. Secondly, you need to find out if the construction is legal and authorised.
If you are buying a flat in a building where the co-operative society has already been formed, you need to ask for three key documents — the seller's share certificate, a no-objection certificate (NOC) and a letter from the society, stating that the seller is indeed the owner of the property, and there are no liens against the flat and it is free from any encumbrances.
If you are buying an under-construction property, you must go through the approved sanction plan, IOD and commencement certificate issued by the municipal corporation. Again, the key is to establish whether the builder has clear ownership of the land on which the project is taking shape. "An agreement between the builder and the original owner is not sufficient. The project also needs to have an IOD. This is a set of instructions that a developer needs to comply with so that he can legally construct the project. It is valid for one year and needs to be reissued if the project has not been completed in a year's time.
If the construction is only partly complete, you need to exercise extra caution. If you are buying a flat on say the 30th floor, while the construction has been completed only till the 15th floor, you will not get the occupation certificate as the building is still under construction. In such cases, you must insist on seeing the commencement certificate, particularly for that floor.
Similarly, projects that are in the pre-launch stage need additional scrutiny too. It is even more necessary to establish the trustworthiness of the builder, especially in terms of his track record for transparent dealings and compliance with legal formalities. So while evaluating various projects in the region, they should look at the credibility of the developer, project specification and amenities offered, to do an apple to apple comparison. While comparing different projects in an area, consumers should look at the overall cost of the house and not just the advertised basic sale prices as there are additional costs like preferential location charges, car parking, power back charges that are charges over and above the basic sale price. One should also go through the construction specification and project amenities in detail as they have a huge impact on selling price.
When you are looking for a land parcel or an apartment then location assumes prime importance. One should take special care to note where the project is coming up and what kind of social infrastructure would develop in the vicinity of the project. Check if there is a public transportation system being planned for the region and, most importantly, check what is the reputation of the developer in terms of construction quality and delivery of the project.
Finding the perfect property for you can be a long process. Following op on all the important details can prove to be an intimidating thought for many. But while much time will be invested in research and inquiries about the property, the end result is worth it!
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