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Buying your dream home? Remember these 5 points!
Your dream home is beckoning you to hurry -- you have got your loan approved and you think you have nothing more to worry about or take care of.
Well, its not exactly a rosy picture from here on -- you still need to evaluate aspects related to your house carefully and bring them under the scanner to identify loopholes. This is especially true of the agreement you need to sign with the builder.
Here is a five-point checklist that you need to cross check and validate in your agreement.
Point 1: Actual price of the house
The agreement you enter in with the builder details the various costs that you will need to bear for buying the house. This would include the cost for utilities like electricity and water, parking space, various taxes and, in some cases, even the registration charges. However, the builder may then levy some extra charges for any of these.
What you need to do:
- Check the agreement very carefully for all the charges applicable.
- If possible, get the agreement checked by a lawyer for any missing or hidden charges and get the anomalies (if any) rectified by the builder.
- If the extra charges are for alterations made to the original plan, ask the builder for the sanction letter provided by government authorities for such alterations.
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Buying your dream home? Remember these 5 points!
Point 2: Actual size of the house
The agreement would clearly mention the size of the house you are purchasing. However, there is a clause which states '. . . the plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications. . .' Therefore, you may agree for a certain size, but the builder can give a different size.
What you need to do:
- Before freezing on your choice of a builder, do some research about the builder's past projects.
- If possible, talk with other buyers who already have got possession about problems faced by them.
- Try and include a clause in the agreement stating the minimum and maximum size beyond which the builder cannot increase or decrease.
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Buying your dream home? Remember these 5 points!
Point 3: Carpet area
The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area in which literally a 'carpet' can be laid.
When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called the super built-up area.
The carpet area can be 15-30 per cent less than the super built-up area. However, you will not come to know the exact size until the flat constructions is completed.
What you need to do:
- Purchase the property based on the carpet area of the flat.
- Ensure that this area is mentioned in the agreement.
- Try to get a clause included which will ensure that the contract can be terminated if the builder provides a house with the carpet area less than what is mentioned in the contract.
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Buying your dream home? Remember these 5 points!
Point 4: Date of possession
The agreement normally mentions a tentative date of possession. However, there have been instances where builders have delayed possession by more than a year.
What you need to do:
- Check the progress of the construction personally.
- If the progress is slow and would not meet the date of possession in a timely manner, build pressure on the builder.
- Forming a society with other buyers sometimes helps a lot in getting things to speed up at the builder's end.
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Buying your dream home? Remember these 5 points!
Point 5: Completion certificate
On handing over the house to you, the builder needs to also give a completion certificate. This is issued by municipal authorities who establish that the building complies with the approved plan.
You would need this certificate for registration of your house and other government formalities.
What you need to do:
- If the agreement does not mention the certificate, ensure that the agreement has a clause which states that the builder will provide the certificate while handling over the house to you.
- If the builder delays for a long time, forming a society with other buyers sometimes helps a lot.
Other than these five points there more aspects such as the quality of the construction, management of the society, et cetera. For this you can try to add clauses to the agreement or form a society to get the builder to meet your demands.
Since there is no industry regulator you can turn to for the redressal of issues, it is important that you are aware of what you want and what you are getting.
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