WHAT ASPECT SHOULD BE CONSIDERED BEFORE PURCHASING A PROPERTY OWNED BY A COMPANY?

There is a vintage English proverb, "Precaution surpasses cure," which may be most appropriate when buying immovable property. Although several laws are set up that protect a buyer of the property, self-help is the most significant help, and one needs to do due diligence before buying property.

1. Approval and licenses:

When you zero in on the property, check the builder's paperwork, ranging from commencement certificate for work, environmental clearance, and approved building plans. Ask for the land title status and see if the builder has bought the land or has just development rights. Here is a listing of documents you should check.

(a). Title Deed:

Check if the builder has a request within the property. While buying a plan, begin to see the land's title deed to verify if the builder has the total directly to it. You may also take help from the lawyer to have the act examined.

(b). Release Certificate:

If you are buying a home in resale, remember that it might have been pledged to get a bank loan. Check Encumbrance Certificate: It can be crucial to verify that the land is clear of all legal dues.

(c). Verify land use:

Verify the land-use zone according to the city master arranged for the plot. You can get the plan from the area body office in your respective city.

(d). Approvals by Local Body:

Ensure that the development corporation and the city's area body have approved the whole layout.

(e). Property Tax Receipts:

If you purchase a resale apartment, require previous property tax receipts from the seller and additional bills. With this system, you can ensure there are no pending bills.

2. List of Banks Financing the Project:

Banks have pushed up financing with real-estate companies sitting on unsold inventory and devoid of enough cash to accomplish their projects. There are lots of builders who don't get bank loans at all. So, as soon as you finalize the property and confirm that approvals come in place, find out banks that are willing to fund the project and go with the main one offering you a loan at the lowest rate.

3. Calculate the Total cost:

Do not pass what the broker tells you. Brokers often mention the essential value and no other factors such as internal/external development fees, preferential location charges, parking/club/statutory charges, and service tax, which escalate the total cost. Look for the final price of the property.

4. Verify the Builder:

The bit of land under consideration may be under prosecution. Hence, it is suggested that you do an expanded confirmation of the builder. You could support its past or current projects and post queries on the various online real-estate forums. BUY VS RENT: Many people buy a home thinking they will use the rent to pay EMIs.

Experts say it is a wrong approach. The rental yield on domestic assets is generally only 2-3 percent. Moreover, the business may continue to be abandoned for months without a resident.

5. The Right Plan:

There are various payment choices available in the market, for instance, down-payment plans, flexible payment plans, construction-linked system, and possession-linked system. Authorities say one must choose carefully, as generally there's a cost for each service.

For example, in subsidy projects, the amount is at least 10 percent more prominent than what is charged under regular schemes. Customers should also recognize that any late payment or default on the builder's part in such systems will impact their credit history. You can then find guaranteed rental schemes under that your developer either pay you to rent for a fixed period during construction or a certain period after possession.

In the first scheme, the client gets regular payments from the developer throughout the home's structure, which helps him offset part of EMI or rent costs. In the latter scheme, generally for properties outside city limits, the developer offers rental income after possession. But the fine print is that there indeed is no guarantee.

6. Size of the apartment:

Builders generally mention the super built-up area in the brochure and its common areas such as the staircase, lobby, etc. The carpet area of the flat could be 30 percent less compared to the super built-up area. For example, a two-BHK 1,000 square feet flat could be only 700-750 square feet. It is desirable to always go by the carpet area, the location enclosed within walls. Ensure that you check how many properties (built-up area) you will need to build your dream house. Topography and soil are one other vital factor."

7. Check the Infrastructure Plans:

Metro connectivity or some other significant infrastructure development in the future associated with the precise location of the property you would like to purchase can increase the return on investment tremendously. Also, make sure that the property is not near either polluting enterprise.

8. Check the Site:

The layout in the announcement could be different from reality. So, execute a thorough site visit before booking the property. Connect to people in the neighborhood as they may find out about any illegal occupation or other legal disputes linked to the business.

9. Register Your Plot:

After choosing the business, you have to join up with authority concerned for becoming its lawful owner. People say, "Through the registration of sale deed, an individual can acquire the rights of the property from the date of the execution of the deed." Finally, do research the developer's record regarding total square feet developed, market feedback, and project delays. Also, check the grade of its past projects. For this, you can reasonably refer to or take part in several online real estate forums.

Author: Shweta Singh