Buying a house of your own is not just a big step in realizing your dream; it is also a major financial burden on your shoulders for a long period of time. That is why when you make a life-changing informed decision like this; it must be taken with utmost caution. Investing on residential units are godsend for real estate investors but It is equally crucial for the buyer to do proper homework on not just the property but also the property developer as well as ensure the necessary documentation is in place from both sides of the party while making the purchase.
“TGS Constructions is a residential property developer, it constructs buildings and apartment in Bangalore, it has more than 40 ongoing projects in the city with affordable price quote. As per TGS Constructions Customer Reviews they have a very transparent legal agreement and their after sales services are also up to the mark.”
Here a key few points a buyer should consider to avoid being victim to any fraudulent activity:
- Determine true ownership: At times there may be multiple parties involved while mediating the sale of a property. The buyer should ensure he is dealing with the true owner of the property and not a person who is acting on behalf of the owner. In case the seller possess a power of attorney on behalf of the owner, the buyer should confirm the authenticity of the person involved in the deal and then go ahead with the deal. If the deal is not done between the true owner and the buyer it may lead to legal complications being raised in the future.
- Get verification from the bank on approving the property: If you want to find out the property is legitimate, approach a bank or a financial institution as they will only approve properties that possess the necessary paperwork. This can help buyers in not investing in a fraudulent property and also avoid being cheated by the property developer.
- Verify the Title deed: It is extremely crucial for buyers to examine the title deed as it checks whether the property is in the sellers or builders name and it also checks to see if the developer/seller has the right to sell said property. It is better to ask the developer/seller for the original title deed rather than photocopies as it is advised to get it further checked with a reputed legal expert. If you as a buyer are finding it hard to make sense of the title deed it is better to not purchase the property as it may lead to legal troubles in the future.
- Check the property’s certificate of completion: Municipal authorities issue certificate of completion to buildings which confirm the building is ready to occupy. If a building does not obtain a completion certificate, then local authorities have the right to demolish the building because of its illegal construction.
- Procure a copy of building layout: Buyers must obtain a copy of the building layout from the developer/seller of the property to confirm that there are no risks in the building plan and also to check if the project is approved. This quick check is to make sure that buyers are not cheated after paying the initial down payment if any such problem arises. In order to prevent any rows between buyer and seller, it is better to mention the area details in the sale agreement as well.
- Check if the property has any legal over-dues: It is advisable for the buyer to check if the property he/she wishes to buy does not have any outstanding dues, facing any legal issues or complaints. If the property is located in a society a no objection certificate should be obtained. Looking into this will ensure the buyer is not slapped with any additional charges on account of unpaid dues.
- Procure a detailed breakdown of the property cost: Buyers should demand a detailed cost breakdown of the property from the builder/seller as they should be aware of the cost and to know when the installments amounts should be paid, also the buyers know the term for payment of the property. The buyer should intimate to the seller/builder to mention this in the sale agreement so that it is legally bound from any issues arising in the future.
- Enter into a written agreement with the builder/seller: The buyer must ensure that the agreement in respect to the terms of payment, the facilities and amenities offered and available are mentioned in the written agreement, so that if any legal dispute arises there is a binding contract as proof.
- Ensure there is no delay in registration on a legal property: if a property which the buyer wishes to buy has all the necessary legal requirements ensure you get the registration of the property done as soon as possible to avoid numerous transactions are not done by the seller on that property. If all the necessary legal requirements are not done by the seller/builder it is advisable to wait it out and see if there is a need to invest in such property.
- Buyer should opt for a construction-linked plan: It is suited for buyers to take on a CLP (construction-linked plan) as the payments are made by the buyer during stages of construction as it attracts less risk. Buyers are advised to not fall for offers where the seller/builder offers huge discounts when the payments are made upfront as they pose a greater risk to the buyer. A construction-linked plan ensures the buyer need not make payment to the mortgage if there is a delay in construction of the project from the builder.
These are the few things to consider by real estate buyer while planning for a long-term investment like buying a house or land so as to ensure he/she is not a victim of any fraudulent activity from the seller/property developer.
