A complete guide for buying your dream home.


Every person has a dream to own a beautiful home. Are you also having a dream of buying a home or flat in a real estate project? Come and join me, you will get wonderful information regarding buying your dream home in this article. Collect all the required information from all the sources mentioned here and analyse them before entering into any real estate deal.

Introduction

Making a decision to buy a dream home is not easy. It requires a proper homework before entering into any deal. The real estate market is complex and the builders hide many things from the home buyers. Customers are also not aware of the things what they should know and check about the project. I am writing this article for the awareness of prospective home buyers. They must note all the points and then only make a good sale deal. Government of India has recently passed Real Estate Regulation Act 2016 to protect the rights of home buyers and to put certain restrictions on the builders. Now the builders have to quote the price on the basis of carpet area not on super built up area. Before the enactment of this act, builders used to sell 700 sqft. carpet area for 1000 sqft. super built-up area which was leading to 25-30 % cost escalation and the builders were simply enjoying the customer's money.



Searching for good projects


There are many means for searching real estate projects and good residential properties. The means are newspaper advertisement, internet, relatives and friends, hoardings and sites visit. We can search and select few for comparative evaluation.

Visiting the project sites


We can visit the project sites for better assessment and clarity. We can ask the site manager to show all the required documents such as land purchase deal, development authority clearance, environmental clearance, approved layout plans, model of the project, model flat etc.

Compare the projects


Compare the selected properties for price, amenities, location, connectivity, future value appreciation, resale potential, builder's reputation and previous projects completed by the builder. By considering all the factors then only decide the deal.

Select the best project to suit your requirement


Look for price, amenities, location, connectivity, future value appreciation, resale potential, and your requirement. Choose the property which best suits to your requirements and budget.



Know the rights and duties of allottee

To protect the rights of home buyers and to put certain restrictions on the builders the real estate regulation act 2016 makes the following provisions:-
  1. The allottee is entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority.

  2. The allottees are entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement.

  3. The allottees are entitled to claim the possession of apartment, plot or building, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration given by the promoter

  4. The allottee shall be entitled to claim the refund of amount paid along with interest from the promoter,if the promoter fails to comply in accordance with the terms of agreement.

  5. The allottees shall be entitled to have the necessary documents and plans, including that of common areas,after handing over the physical possession of the apartment..

  6. Every allottees shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale.

  7. The allottees shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section 6.

  8. The obligations of the allottees under sub-section 6 and the liability towards interest under point 7 may be reduced when mutually agreed to between the promoter and such allottee.

  9. Every allottee shall participate in the formation of an association or society or cooperative society of the allottees

  10. Every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of two months from the date of issue of occupancy certificate.

Making an agreement

When you are clear about everything and have selected a property for purchase, make an agreement with the builder/ company. The agreement should contain the provision of mutual agreeable points by both the party. Read the term and condition carefully and insist for change for the same if not favorable to you. Few points of agreement which you must look carefully.

  1. What is the amount of total deal and break up of price (basic price, EDC,IDC, amenities charges, parking charge, club membership charge, electric meter charge, registration charges, stamp duties)

  2. Rate of delay charges if the property is not delivered on time. It is in two form a. delay charges /sft (generally 5-10 rupees/square foot) b. rate of interest on the paid amount( generally 12%)

  3. Date of possession

  4. Mode of payment

  5. Deal amount is fixed/ locked and builder cannot raise the cost due to any reason.

Option for making payments

There are many options for payment i.e. cash payment, loan from bank, full payment or construction linked payment. Construction linked payment is best. If the builder shows some progress then only he will get installment from bank of your loan.

Monitoring the project progress

Monitor the progress of your house from time to time. If the progress is not satisfactory, contact the builder and ask for the cause of delays and tell him to rectify and deliver in time.

Claiming penalties according to agreement

If the project is delayed due to some reasons, claim your penalty amount from time to me according to agreement.

Grievance redress mechanism

If the project is delayed, not paying late charges, defaulting in such case you may go to the grievance redessal mechanery available in real estate regulation act 2016.

The Real Estate Regulatory Authority

  1. To ensure compliance of the obligations cast upon the promoters, the allottee and the real estate agents under this Act.

  2. To maintain a database for public viewing, and enter the names and photographs of promoters as defaulters including the project details, registration for which has been revoked or have been penalised under this Act, with reasons therefor, for access to the general public.

The functions of the Central Advisory Council


  1. Suggestion for implementation of this Act

  2. Policy suggestion

  3. Protection of consumer interests

The Appellate Tribunal

the appellate tribunal shall have, for the purpose of discharging its functions the same powers as are vested in a civil court under the Code of Civil Procedure- 1908. All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings

Possession letter

Once your house or flat is ready, the builder will send you a possession letter stating that your flat is ready, Please come for registry and possession within 45-60 days.

Making final payment


With the possession letter you will get a list of dues for payment before registration. The charges are such stamp duty, parking charges, advance maintenance charges for 18 months, meter charges, security charges, club house charges etc. You have to make payment either going physically or take builders company account number and transfer the amount online or send cheques by post.

Registration


Once the due amount is paid, the builder will prepare all the documents on stamp papers. Take a date convenient to you and go to company office, sign all the papers, attach photographs. Next day go to registry office pay the registration fee (Rs.20, 000 in my case) and get the registration done.

Possession


Take two copy of possession letter from builder's office, one copy should be handed over to site office other keep with you. Check all the things as per specification. Check that all the work such as electrical fittings, wash basins, showers. Flooring, white wash are completed before taking possession.

House warming function


After taking possession, get cleaned the house. Find the subha muhurat for shifting to your dream house. Perform worship (Yag) and arrange for lunch for your friends and relatives. Now shift happily to your dream home.

Conclusion


Readers are requested to acquaint themselves with all the required information and risk before buying a home or flat. Check all the documents and clearance certificates. Consult other people about the project and the builder's/ company's history. This is your life long earning, do not get cheated and ruined your future. Take the help from this article and make a good deal.


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