Buying home in Bangalore? Scared of being cheated? Real estate has taken a leap in Bengaluru. More and more builders are coming up with schemes and townships to grasp the attention of people in need of buying houses. Safeguarding yourself from being ditched in this market is really important. It is essential to know how and where to invest and certain things should be considered before buying the property.
Verify the builder
It should be noted that the builder or company is officially registered one. You can check the previous or current projects being built by the builder. Most of the builders have websites showcasing their works.
Verify the project
The project should be verified if it is legally going to be built.
Check the property of the project
You should visit the site and properly note the location on which the project is to be built. Check whether the site is proper and legal for construction. You should verify if the property or land on which the construction will be taking place is in the name of the builder and not under any dispute. The construction is different from the brochures, so it is necessary to visit the site before booking the project. You can also interact with the people staying in the same neighbourhood to know the location more.
Get details about the project and additional amenities
Before booking the project it is also important that you get all the details of the projects and the extra amenities and services that will be included for example parking, common plot, general stores and club house. Lifts and emergency routes should also be noticed.
Check infrastructure plans
You should have a look at the sanctioned municipal plans and then see what changes are made in those during construction phase. Moreover, you should also check the infrastructure plans if there are some services like metro or other infrastructure projects coming up in the vicinity which would provide you a good benefit while reselling.
Note the carpet area
Carpet area is the area enclosed within the walls of the house. Usually the brochures do not show the carpet area of the house, instead they show the built up and super built up areas. The built up area consists of area of flat along with area of staircase and lobby. This makes it around 25-30% more than the carpet area. You should not stay misinformed about the total area of the flat.
Check the banks financing the project
Most of the builders do not have hand on cash flow to ensure the construction of the project. So banks are involved in financing these projects. The construction phase work is based on the loan given by the banks. So it is necessary to check if the project is being financed by the bank in real.
Calculate the total cost
Along with basic cost, there are various additional costs such as development fees, service tax, GST, preference of parking and various other fees for amenities and services. Thus, proper costs of everything should be taken into consideration in the total final cost.
Verify licence and affiliation
Paperwork of the builder should be properly verified before going further. Various certificates should be considered and verified. This includes title deed and encumbrance for legal land issues, release certificate in case of reselling, approval from local authorities, payment receipts , taxes, etc.
Check different payment methods
Various payment options are available – Down payment, construction linked payment, time linked payment, flexi payment. The customer should properly see all the payment options and choose according to individual convenience.
Provision of Escrow Account
An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. This account is used to keep regulatory flow of fund in check. The home buyers money is kept in the escrow account until and unless the home and refurbishments have been received and approved by the buyer. The money is transferred to the builder only after the approval of the buyer.
Check the quality of materials used
While the construction is going on, you should visit site and see to it that good quality material is being used as mentioned in the project details.
Note the project delivery date
The delivery of the plot after completion of construction should be noted. So that different measures can be taken incase the possession is not given in time.
Register the plot
After the possession of the house, the first thing you have to do is register it under your name with the authority in charge.
Consumer support after violation
If there is any violation, you can file complain on real estate forums. Consumer courts and civil courts also take actions to help the consumers.
RERA (Real Estate Regulatory Act)
As per immense complaints by the home buyers against forgery and faulty transactions done by the builders, RERA has been passed by the Government of India to safeguard the home buyers. RERA will govern not only the registration of projects, real estate agents and builder lands but also maintain a record of details of the projects such as carpet areas, quality of material used, delivery time and provide lane for safe money transactions. Moreover, it will also be of great help in addressing to complaints filed by the home buyers.