Do you wish to own a House? Things to be verified before purchasing an under-construction House!

Hello Friends,

Everybody dreams of own House. We put lot of our effort to make our dream comes true. It takes several years to make our mind to purchase a dream house.

We do lot of research and see several properties to come into a final decision. We generally investigate the location of property, quality of construction, Property cost, amenities available, loan availability on the property and builder reputation etc.

In cities like Delhi, Mumbai, and Bangalore many salaried persons live in rented house, they are doing jobs far from their native places. They purchase under construction flat, take loan from Banks, and repay EMIs regularly.

In case of under construction flat/house, generally builder promises to give possession within one or two year, however it is observed that builder could not deliver it on promised time.

In cities like Noida, Gurgaon, Ghaziabad there are many projects which are running late and after passing more than 10 years, handover of the flat or house could not be done. In some cases, construction work is stopped due to some litigation or court order.

Although the handover of the flat is not done but the purchaser is paying EMIs as well as rent which put lot of financial pressure on the buyer.

Here in this situation, many times the buyer blames on the Bank who financed the buyer for purchasing of the property since the buyer relied upon the Bank for project approval. However, the Bank does not take any responsibility of such delay by the builder.

Since the buyer approached the Bank for loan and Bank consider the loan based on the eligibility of the buyer not on the promoters, hence buyer should not totally rely upon the Bank’s approval and must do his own investigation.

Here I mention you some steps to follow before finalizing any under construction flat or house for purchasing.

Location of Property:

Location of property is very important aspect to look upon. Generally, you choose the location which is convenient for you to travel and all amenities are available nearby. But here I am discussing a different aspect of the location.

You should check under which jurisdiction/local body the property comes in. Whether it is coming under Gram Panchayat, Municipal Corporation or Development Authority.

In case of Gram Panchayat: Please ensure that construction is not on agriculture land, conversion of land has been done and the necessary approval of the construction of the building has been taken. You can ask for the copy of the relevant documents from the builder and can check it.

In case of Municipal Corporation: The necessary approval for the construction of the building has been taken and construction is being done as per approved layout/Map. Also ensure that builder has paid all the taxes. You can ask for the copy of the relevant documents from the builder and can check it.

In case of Development Authority: You can check the information about the project in the website of the Development Authority. Please ensure Layout/Map is approved and construction is being done as per approved Map. The builder is not coming the defaulter list of authority.

Check the RERA registration: Please get the RERA registration and check it on RERA website. See the time schedule for completion of the project.

Enquiry about the Promoters/Builders: Please obtain the name of the Promoters and builder of the project and check that name of any of the promoter and builder is not appearing in the RBI defaulter list. You can check it on the website of RBI.

Project is financed by the Bank or Not: Please enquire whether the project is financed any bank or not? If Yes, please enquire that loan is not in default.

Project is approved by any Nationalized Bank: Also check that project is approved by any nationalized Bank.

It will take few days to ascertain the above, but before investing you hard earned money, you must do the above investigation to safeguard your interest.