3 HIGH-PRIORITY THINGS TO VERIFY WHEN BUYING A FLAT

13 Dec 2020

KEY OBJECTIVES

This blog article is very useful if you are trying to have peace of mind while doing your due diligence and other verifications to check if the project or the transaction is genuine. You will understand how the below 3 things matters a lot in this regard:

What kind of payment plan to be considered?
What technical aspect you must consider?
What kind of track record of the developer to be checked?

Purchasing a property implies spending one’s lifetime savings. Many times, even the cost of a property is so high that after spending all the money you’ve saved for years, you won’t be able to cover the costs and you may end up taking home loans from banks & financial institutions.

If you repay the home loan, it will take a lot of time and money in the form of monthly EMIs, so it is a sensible idea to contribute wisely and safely so that you get what you pay for.

Some important points that you can use as ready reference when buying a flat are given below:—

THE PAYMENT PLAN MUST BE CONSTRUCTION-LINKED, NOT TIME LINKED

Most real estate developers earlier used to go for plans which were time linked with connection to the construction progress and it used to place a heavy burden on buyers. Under CLP, upon completion of such construction-related milestones, the bank pays instalments to the real estate developer on behalf of the buyer only when certain progress is done.

On the pre-decided slabs laid by the developer, the bank disburses a certain amount and the developer can raise the next demand for payment only after certain construction milestone is achieved.

After the real estate developer provides home-ownership (possession of flat), the last 5 per cent of the overall cost of the property has to be paid by the buyer. The repayment of the buyer’s loan begins after s/he gets property ownership.

However, much more than the real cost of the property is charged by the buyer. The EMI, the interest on the EMI, and a sum are paid as Pre-EMI by the buyer.

The buyer is at risk if the seller or developer extends the handover of the property over the agreed period.

YOU HAVE TO LOOK FOR AN APPROVED PLAN

An approved property plan means whether or not the developer has sufficient legal rights to build the property on that specific ground.

Below things to be verified:

The property owner must have all the papers indicating his ownership of the land.
Conveyance deeds, certificates of mutation, and municipal tax records are included in the documents. The property owner must clear all land taxes.
Make sure that you look for legally sound properties and that the construction plans are sanctioned so that you do not have to face any legal issues in securing loans, mortgaging, or selling the land.

For new customers, whether there is a substantial delay or development is not in line with approved plans or a serious court case is brought, even approved projects will subsequently be disapproved.

Kolkata-based realty brand Magnolia has 100% compliance on their project through HIRA registration which is considered the highest standard of safety in Real Estate. Check their new HIRA approved project Magnolia Merlion

VERIFY THAT THE CONTRACTOR OR BUILDER HAS A STRONG PAST HISTORY OF COMPLETING PROJECTS

When searching for an apartment, you may be looking for the strategic location of the house, total built-up area, and amenities offered by the developer, but have you ever verified whether or not the real estate builder has a strong reputation for timely handovers?

Well, many real-estate developers start with big ideas and demonstrate their larger-than-life appearance that attracts prospective customers, but investing in those properties brings buyers nothing more than disappointment.

Therefore it is recommended that one should study well on the history of the developer and check if he/she was able to complete some project, and how early he/she was able to deliver it even if he/she has completed a few projects.

When one is looking for a real estate purchase, the financial status of the builder matters a lot. If the developer has debts, even if he/she receives financial help from the bank, it will be difficult for him/her to complete the project.

Timely handover is the biggest USP of Kolkata Realty brand, Magnolia. This is the best they know and they do in this trade. So, investing in the under-construction project is safe with them. Check their under-construction project with a timely delivery commitment Magnolia Empire

SUMMARY

Construction linked payment is a buyer-friendly payment plan. After the real estate developer provides homeownership, the last 5 per cent of the overall cost of the property has to be paid by the buyer. The buyer is at risk if the seller or developer extends the handover of property over the agreed period.

Verify that the contractor has a strong history of completing projects. The financial status of the builder matters a lot. So when investing in a property, if you remember the above points, you can get a property that is worth your investment, since one smart decision will help you get the best property at reasonable prices.

Thousands of happy buyers advocate compliances of these points for Kolkata based reputed brand, Magnolia. Check their latest Rajarhat project Magnolia Merlion