Buying a house is a once in a lifetime activity for most of us. The pros and cons have to be weighed against each other if we want this to take off well. Checking out the credentials of the buyer before taking the plunge, would be a good idea. Evaluating the virtues of that individual project is a must too.
It will be prudent for a prospective buyer to mark whether the developer has handed out possession of a housing project he had supervised earlier. This at least would put to rest any doubt about the track record of the builder. However, one still needs to find out more.
According to the chairman of a real estate major, “Of course, a prospective buyer needs to check the credentials of the builder and the delivery of a project sold earlier, definitely gives him a thumbs up on his track record. For a particular project, the buyer must check whether the builder has started construction or not and at what pace the construction is going on.”
He added: “Besides these points it should also be kept in mind whether the land title is allotted by a development authority and change of land use has been done or not? The buyer should also ask the developer whether he has got the mandatory statutory approvals or not.” He added that these could include a project funded by a bank and also whether the buyer can get loans from bank(s) for the project. The banks, on their part, follow due diligence while funding a particular project. “This funding is mostly for construction linked plans and hence the banks keep a check on the pace of construction,” the builder remarked.
He pointed out, that in bank funded projects the developer does not have to wait for the buyer to pay up first, or the developer does not have to wait for EMIs. “This means that the project does not delay at any stage for want of funds,” he added. He felt that although there was a penalty clause that stated that the builder would be penalized for not handing over possession in time to buyers, this clause required more teeth and was not that stringent at present.
“As any prospective buyer would require a lawyer to look at the whole list of approvals or legalities involved in a housing project, it is not practical and is ruled out,” he believed. “Hence, the track record and word of mouth impression ab out the builder is vital,” he added.
Managing director of another building company, also listed out some tips for the prospective buyers. He elaborated, “Everyone wants to invest his hard earned money into safe and reliable venture. Buying a home is not only a long-term investment decision but also tends to be a lifelong contentment. Today when every builder claims to be a successful builder, the responsibility to choose the right project of the right builders lies on the buyer.”
According to him, firstly, buyers should be capable enough to judge their requirements and thereupon, without giving much attention to rumors and false commitments, select the best construction under the banner of reputed builder. He stressed on the importance of reputation and credibility of the builder. He said: “Get advice of property agents, friends and existing clients and employees of the builders rather than deciding on rumours.”
He remarked that the track record of the builders must be checked before buying a house. “No one can achieve laurels in a single day, it is a continuous process. It can be achieved only after rigorous efforts. Therefore, check the track record of the builder in terms of the market reputation, promoters, quality construction of deliverable projects.” He added, “In case of newly emerged builders, track record and reputation of its promoters will be sufficient to judge the reliability of the construction.” He was of the opinion that legal compliance was a must. “Therefore, buyers should go for the builders whose procedures are simple to understand. This shows the clean intentions of the builders that their ultimate purpose is the satisfaction of the clients. Then buyers should also satisfy themselves with the clear title of the property,” the builder said. “The buyers must know that the builder has obtained license, drawings and zoning plans are approved, necessary clearances from environment and other authorities have been obtained. In the absence of all these approvals, the Government may declare the construction illegal,” he averred.
According to another builder, “It is very important to find out the bank credibility of a project.” He added, “Compare the locational advantages, prices, convenience of schools, colleges, health centers, shopping complex, road transport connectivity, safety and security and other factors relating to basic amenities and requirements of life.” Finally, he pointed out that buyers should personally make a visit to the project site and see the sample flat before booking.”