Things to know before buying a flat September 11th, 2010 Posted in Real Estate
Buying a flat/apartment is one of the important decisions one makes. There are instances in the past where investors were deceived by the builders. There are many problems which an investor may face if a proper due diligence/verification is not done.
If you are planning to buy a flat, certain things you should be aware of which are as follows -
Litigation free land
Ensure that the land on which the flat is being built; is free from any legal problems. If you don’t check this you may end up in vacating the flat as it might be demolished. Ensure that the builder has an approved plan.
If you are buying a ready to occupy flat/apartment, ask the builder for Completion certificate
If you are buying a flat/apartment under construction/yet to start, ask the builder for commencement certificate
Check if the government has granted permission for construction of flats. As per the government records, the land should come under the category “build able” land. If the land does not have such permission, this will be considered as an illegal construction. Ask the builder to show a sanctioned building plan.
Do ensure that all the required property taxes to the corporation departments are properly paid and up-to-date. Ask the builder to provide you with the receipt of the latest tax payments to make sure that they are being payed.
Owner of the flat
Check whether the builder owns the building or not.
Pricing of the flat
Current prevailing rate (Rs./sq. foot) of the area. Whether the rate offered to you matches with the carpet area rate and the built up area or super built up area. Ask the builder to explain what is included “super built up”.
Check what are the different facilities provided by the builder.
Total stamp duty to be paid on the flat purchase.Ask the builder/real estate agent to inform for any hidden costs in the entire transaction. The total actual cost should be calculated by including stamp duty, registration charges etc.
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