Points to consider while pre-booking a project:
1. Builder’s track record - While pre-booking a project, be very sure to check, research and know well regarding the builder and their track record. Since there is nothing more tangible to check, except for the construction site perhaps and the building materials stocked, spend extra care to check the profile of the builder and their past projects, creditability, performance and delivery record. It is better to avoid the newbies and stick to the established ones even if you have to shell out some more amount for that.
2. Necessary approvals and permits - Before taking the plunge, check if the project has secured all the necessary approvals and permits. The two main permits required are Intimation of disapproval or IOD which carries all the conditions that the builders need to abide by while constructing the buildings. IOD needs to be re-validate every year during the building phase from the competent authority. The second one is Commencement certificate or CC which is issued by the local authorities and it is the approval to begin the construction.
3. Sample flats - If possible, ask to see the sample flat. Then again, be careful. Make sure that the sample flat is apt in measurement as that of the actual flat you are buying. Also sometimes the sample flat features expensive accessories and fittings which may not be there in your actual flat. Therefore, be clear about what and how much you are buying.
4. Mortgaged property or not - Check if the project your are buying is mortgaged or not. Normally it is. Builders mortgage the properties and take loan for construction from banks and NBFCs. Therefore, if the builder fails the payment to them, they may ask the buyers to vacate the property as it now belongs to them. So?? So, before buying mortgaged property receive NoC from the bank it is mortgaged to. In that case, even if the builder fails payment, your property cannot be taken over by the bank.
5. Title search – Verify the title documents. There are cases when the buyers enters into agreement with the developer who doesn’t wholly have the ownership of the property. Therefore there stand a chance when the agreement can actually go null and void. Engage a competent lawyer for the title search or better opt for home loan. The loan departments do the necessary title search and verification before leashing out the money.
So, here we end the full volume of our series “All you need to know while considering pre-booking a project”. Do let us know if it has been beneficial to you or in case if you have any more questions. Do drop in your words in the comment box.