10 Things You Need to Know Before Buying a Flat

Essential Things to Consider Before Buying your Dream Home

Finding your dream home is one of the most important decisions of your entire life. You cannot let go of your hard-earned money to waste. One wrong decision and you may end up in a property which may put you in trouble waters in the future. It would be best if you were careful as buying a house can also require you to take out a large loan and then pay monthly instalments from your income. 

Therefore, you must do thorough homework before you buy your new flat. There are various factors you must consider before finalizing an apartment for yourself. The location, possession date, and construction quality may be the most critical parameters, yet we will discuss 10 important things that you need to know before buying a flat.

10 Things You Need to Know Before Buying a Flat

Record of the land and regulatory approvals like RERA:

It is crucial to know the land where your flat is. Research the soil quality and topography of the land. Ensure the piece of land does not have outstanding dues. The title deed should be checked and verified before you buy a house. The title deed outlines all rights, ownership, and obligations to the property.

In a residential society, gather as much information about the land on which the project is being carried out. Ensure that the land is not disputed and has all necessary approval from the regulatory bodies like CLU and RERA Approval.

Thus it is advisable always to hire the services of an experienced real estate agency in your town.

Builder’s history and track record

Though the government has done a lot to take care of your money and protect your rights, the real estate market in India is still by and largely unorganized. There have been instances where the developers could not deliver on the promised lines or delayed the possession, or even compromised with the construction quality and material used in construction. Apart from hiring the services of an experienced real estate agent, investigate the builder’s record. Please find out the history of the building firm, other projects of the same builders, and the builder’s track record with the old projects they delivered. Find out if the previous projects undertaken by the builder were delivered on time and satisfactorily.

Property price:

It is essential to get your flat at the best possible price. Setting a budget is the first step to buying a house or flat. Knowing how much money you can spend on a home will make it easier to narrow down your choices. To find out if the builder has provided an accurate quote, compare the property’s price with those of other builders. You have many options to compare properties in the same area. These sources include portal listings such as Tricity Property Searches and newspaper listings.

Super-built-up area and flat’s carpet area

A super-built-up area is usually the total area, which includes shafts, elevator space, and stairs. Carpet area refers to the area inside the walls of the flat. This area can be 30% smaller than the built-up area or the area used in calculating the property’s price. If a floor has two flats, in that case, the cost of the common areas is shared.

Legal check of property:

Ensure the land on which the flat is built for all legal regulations. Developers must have NOCs of Area development authorities, water supply, sewage boards, electricity boards, and Municipal Corporation. However, if you’re applying for a home loan, the bank concerned will verify your property documents before loan approval.

Possession time of the apartment

Due to delays in residential and commercial plans, it is becoming a common trend among developers and builders to delay the possession date. A precise estimate of when possession will take place is essential for buyers. A developer will usually ask for a grace period of six months, but there should be an explanation.

Financing Banks:

It is essential to check the property for bank approvals for home loans. Some banks are maybe reluctant to lend money to certain builders due to their track record or any other reason. 

Builder-buyer agreement

You can book a flat or house by paying a token amount. In return, you will receive an allotment note. For the remainder of the amount, a tripartite arrangement is prepared between the buyer and the bank. Before signing, it is essential to read and understand the agreement and all clauses and raise any questions at this stage.

The location of the flat:

It is vital to do some homework about the surroundings where you will eventually live. Examine the accessibility to basic amenities and infrastructure. These factors will ensure that you live in peace. You should ensure that the flat is in a secure area, which will provide security for your family.

Hidden and additional charges

Make sure you read all clauses and understand penalty clauses. There are sometimes recurring charges by builders even after you have paid the full amount of the flat. Ask for hidden charges, if any. Get clarification about maintenance charges, etc. Also keep in mind additional costs such as home loan processing fee, GST, stamp duty, registration charges, and any other charges.

This will be the most critical decision of your life. Stay advised and stay informed.

FAQ

Q: How can I know about the builder’s past record?

A: You can do the research online and also consult with an experienced and reputed property agent in the area that you are planning to buy the flat.

Q: What happens if the builder misses the possession deadline as per RERA?

A: Under the 2016 RERA Act, you can send legal notice to the builder for not delivering the property on the time promised as per RERA, and you can also transfer your case from CDRS to the State Real Estate Regulatory Authority. According to this Act, a builder must pay 10% interest on the total value of the flat for delayed possession.

Q:  Am I not going to get heavy discount if I buy my flat without a broker mediating the deal?

A:  Though it is your personal choice, but it is always advisable you hire the services of an experienced and seasoned broker or a real estate agency because apart from assisting you with finding the suitable property for you, a broker will also provide after-sales services, which can be hectic.

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