Key points to remember while booking a flat

While buying a property we may well remember to check on the developer – original title and sale deed, clearances – but there are many more things that you should check thoroughly before signing the final agreement.

Planning on a property purchase in Delhi?

Some of them are:

Be sure what has been promised

When you buy a property, it is important to check what has been allotted to you and what is mentioned in the agreement. In some cases, buyers face discrepancies in the verbal commitments and documentation.

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Pinky Saluja, a user on Open House, a consumer forum by Magicbricks shares, “At the time of booking, it was informed that the area of the flat is 3550 sq ft. However, at the time of possession, we were told that the driveway area, staircase and other amenity areas will be included and we will have to pay for the total area of 3970 sq ft.” In a bid to avoid such situations, you must check what has been allotted to you.

Details of the area

It is wise to check the actual size of your property in the documents. Whenever we go for  purchasing a property or a flat, we tend to get confused when we hear terminologies such as covered area, carpet area, built-up area, super built-up area, to name a few, by the real estate agents. If you are not alert, these are the most common places where you can be cheated by builders.

Specifications promised

Check all the tangible and intangible features of the property such as swimming pool, park-facing, condition of the property, electrical wiring, paving and driveways etc. You must get what is promised in black and white.

Costing

In the home buying process, you may have to pay at different stages. When you are buying a property, there will be a number of upfront costs that you need to take into account. They are beyond your mortgage costs. It is important to be sure to include all the costs at the time of working out your overall budget for the property purchase.

Payment plan

Different payment plans are offered to lure property buyers such as construction-linked plan, instalment-based plan, down-payment plan and flexible plan. If you are buying in the construction-linked plan, the responsibility of timely payments rests on you. Take note of the payment schedule and get in touch with the developer if there is no demand at the expected time.

Date of possession, penalty in case of delay

Project delays have unfortunately become quite common in the Indian real estate market. Needless to say, buyers always have to bear the brunt. Prakash Singh, another Open House participant, is facing snail-pace construction of the project he has invested in. As per the agreement, the developer had promised to pay an interest of 9 per cent on the premium amount from the date of possession, if the project fails to meet the deadline. He writes that the developer has refused to pay the charges and is now mentioning a grace period which was not in the agreement.

Answering his concern, Asha Basu, partner, S Jalan & Company, Advocates suggests, “In case, there is no mentioning of a grace period in the agreement, you can move the court for breach of contract. You need to first issue him a legal notice.”

Generally, developers include a grace period of six months in the agreement. Thus, in most cases, home buyers take a delay of 6-12 months as granted. However, sometimes possession is delayed even beyond the expected tenure.

Exit options

Choosing the best strategy for exiting your real estate investment is just as important as deciding which one to buy. Developers ask to stay invested in the project for certain period and allow you to exit after you pay some cost. Thus, it is important to thoroughly check the exit policy offered that includes the time-period you are required to stay invested and the cost involved.

Neha Nagpal,

Neha is a writer for over seven years now and has written on industries such as real estate, franchise and outdoor advertising.

Source:content.magicbricks.com/industry-news/key-points-to-remember-while-booking-a-flat/75531.html