IntroductionMaking 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 allotteeTo protect the rights of home buyers and to put certain restrictions on the builders the real estate regulation act 2016 makes the following provisions:-
Making an agreementWhen 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.
Option for making paymentsThere 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 progressMonitor 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 agreementIf 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
The functions of the Central Advisory Council
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 letterOnce 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.
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.
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.
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.