Thursday, 14 November 2013

Know What Important Questions Home Buyers Must Ask Their Real Estate Developer

There are many important issues that a buyer of a flat from a builder needs to look into before making the actual investment. There are many types of risks that are involved in buying a property. Some of the risks are choosing the right builder and making sure he is the actual owner of the land. It is important to look into all the factors as it is the investment of a lifetime that you would be making.

What is the land use?
It is advisable to check the land use of the property on which the project is being developed. One can have a look at the license as it states what the land is used for. It means whether it is used for developing commercial or residential property, plots or floors, and so on.

Is the land acquisition completed?
It has been observed that many a times, developers start selling apartments even before land acquisition is done. It may so happen that some unexpected problem may come up due to which acquisition might not be completed. It may also be the case like this that the developer might have managed to buy 80% of the land he needs but get entangled in an argument over the remaining 20%. The situation may turn out like this that if in one tower in which your apartment was to be planned and developed, on the disputed 20%, you might really face a troubling situation.

Know whether the developer has legal title?
It is advisable that you ask the developer to show you his ownership of the land by showing you the papers. Each plot has a sole khasra number. You can ask for that number from your builder and check for yourself in whose name the plot is registered. Moreover, you could also appoint a lawyer to conduct the title search on your behalf. He could probably help you find out if there is any kind of legal dispute over the land.

Check thoroughly for all the approvals in place.
You could ask for the license from the developer which is in fact a proof of the fact that to develop the project, he has taken approval from the area's town planning authority. You must be aware that every license has an exclusive number. Moreover, developers often print the license number in their ads who have obtained the license. You could also ask the developer if he has received these approvals: water, building plan, environment and pollution, and height clearance (if the building is situated near an airport).

Many a times, when clearances have not been obtained, then the realtor might make optimistic projections that he will get them within, say, six months. According to a Director of the Gurgaon-based realty consultancy, the fact is that any delay in getting clearances is one of the main reason of project delays.

Get to know what the terms of the application form are
You must pay utmost attention to the payment plan in the application form. Take into factor whether the builder is asking for a huge part of the cost of the apartment at an early stage of construction. It is advisable you stick to a construction-linked payment plan. It has been observed that nowadays numerous developers offer plans wherein a significant lot of the cost has to be paid after possession. Generally, such plans are considered advantageous from the buyers’ point of view as they insist the developer to hand over possession as soon as possible.

1 comment:

  1. Thank you guys posting very nice updates