For any individual, buying property is a big investment, even if it for the nth time. There are certain precautions that need to be exercised before choosing the property to invest in. Here are a few pointers for you to look out when you buy property.
1. Checking for approvals
Unless a builder obtains all the necessary approvals, it can lead to delay in property development and may even force the developer to terminate the project which would be a big loss to a buyer. You should also look into the land ownership deed on which the property is being developed. To verify the land ownership status, you should check the letter of allotment in case it was purchased from a public agency.
2. Written Agreements
Do not settle for anything less than a written agreement with a builder. The agreement must bear the specifications of the flat and the associated conditions and terms including delivery time, payment plans and penalty required to be paid in case of default of either party. Hidden costs shall also be taken care of.
Check the occupancy certificate in case you are purchasing a flat in a completed residential community along with fire safety mechanism and equipment, electricity connections, property tax receipts and water supply. In particular, checking the occupation certificate is imperative because it certifies that the building is suited for living and complete. Not only has it gotten all approvals needed but has adhered to building bylaws and norms.
3. Bank Loan
Most buyers rely on bank loans when buying real estate. Borrowers usually put up the apartment being constructed as collateral when taking out a house loan and banks thoroughly check the builder’s credentials apart from other aspects. They do so to ensure that the collateral’s market value does not reduce. There are quite a few projects which are approved by financing institutions like NBFCs and banks. You should approach those banks for loans with which the project partners collaborate.
4. Reputation of the Builder
The developer’s financial soundness must be verified as it shall indicate his ability to complete the construction in the absence of external borrowings. A developer must have a track record which is traceable as it will act has a reference point for under construction projects and new launches. The projects delivered by builders and time needed for each delivery must be considered. It is also essential to know about the involvement of the developer in legal feuds for making judicious purchasing decision.