Going To Buy a Property From Developer or Builder? Check These Out First
Things to Check Before Buying A property From Developer:
- Builder should have a previous track record
- Ask how many million sq.ft he has already constructed and how many projects are underway
- Check out his past track record for time delivery
- If public listed, check out balance sheet and quarterly reports to see how the company has been faring financially.
- Check if the project you are interested in is a Joint Venture. If so, check out JV partner as well and the details of the JV.
- Also check the neighborhood market and features and rates in the vicinity of other re-sale property. Once you benchmark a property on the corridor you will be able to decide if the price asked for is justified
Verification of Documentation:
- Check for proper conveyance of Title in favor of the builder.
- Check the license/development right/approvals of the builder.
- Ensure whether reputed financial companies approve the project. This will help you in getting financial loans.
- Check the layout and building plan as approved by Government authorities
- Ask for Occupation/Completion Certificate if construction project is completed
- For buying a new property you need to check Deed of Conveyance, Mutation Certificate (for complete property), Land Registration Status, Sanction Plan, Search Report and Payment Schedule (for under construction). It is a must that you go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate.
- For re-sale property, check demand notice relating to renovation, tax dues and latest receipts of payments made towards various out-goings such as water, electricity and ground rent.
- Verify plinth area of the Apartment
- Check carpet area of the apartment and find out if the difference between committed and actual carpet area is reasonable
- Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
- Ensure the Conveyance Deed is registered after entire payment has been made.