If you have been an ardent follower of the real estate business lately, you might be well familiar with the frequent incidents of property frauds. Though builders always want to be in the news, the reason for their omnipresence in the media can be attributed to all the wrong reasons. Over the years, project delays and the news of some builders becoming bankrupt have shaken the confidence of hapless homebuyers.
If you have been cheated by a builder or want to avoid that situation altogether, these few tips will come quite handy-
1. Research the track record of the builder: Choosing a famous builder is just not enough while buying a house. Many famous builders are often found bankrupt. Thus, it is important for the buyers to check the track record of the builder before buying any property. Facts like the number of completed projects, the time taken to deliver the project, reviews by customers etc. play a vital role in choosing the builder or the project.
2. Get a home loan: Due to increasing NPAs, banks these days have become very careful. They finance project only after doing a proper verification. Therefore, it is advisable to invest in a project that has been approved and financed by any nationalized bank.
3. Read the agreement: It is very important for buyers to check whom they are signing the agreement with. Many a time, it is found that the name of the project or the name of the builder does not appear on the agreement. This leads to taxation issues, as the actual contract is owned by some unsavory elements. Also, taking the services of a good lawyer to check with the agreement is advisable.
4. Verify the documents: Buyers should be cautious about the authenticity and credibility of all the documents. At times, projects which do not receive government approval are being sold without the notice of the clients. So it is important to check if the project has obtained all the necessary approvals.
5. Calculate the total cost: Brokers often quote just the basic cost while selling the property. Other important factors like internal/external development fees, preferential location charges, parking/club/statutory charges and service tax are not mentioned, resulting in a miscalculation of the budget by the buyer.
6. Check the add-on’s: A buyer should never buy a property solely based on the look of the sample flat. Hence, it is important to check the details of the various amenities provided with the developer and get everything on paper.
7. Take note of RERA and CREDAI: RERA (Regulation and Development Act 2016) is an act of the Parliament of India which seeks to protect the home buyers of India against any fraud. Similarly, CREDAI is a governing body that acts as a shield between the buyer and the seller. Other local bodies like BRA-I (Bangalore Realtors Association India), an arm of NAR (National realtors association) in Bangalore has a special grievance cell for consumers.
If cheater by the builder, the last resort for the aggrieved consumer is to act against him/her in legal setup. But if you take heed of these points, you will never have an unpleasant experience with any builder