While negotiating the price and obligations, one should keep the following thing clear
* The builder shall provide the minimum requirement of facilities, like electrical fittings, plumbing arrangements, etc. While executing the agreement, we may accept and agree to pay extra for additional requirement. When the building comes to a shape, we may find that the provided/ proposed facilities are inadequate. If we approach/ ask him to provide the same, he shall charge abnormal and exorbitant cost for it. Because, if he completes the building with inadequate facilities, we cannot provide the same on later date and no one electricians or plumbers shall come forward to do the additional work alone, when the building is incomplete. The builder also shall not allow any body to do the same.
Hence, it is advised to forecast and calculate the right requirement required for next 20 years and to ask the builder to provide the additional requirement in the initial stage itself.
* All the buildings should be constructed after getting necessary permits from local administrative body or the competent authority. The authority shall allow the area of building (on the floor) less than the area of the land. The ratio between the area of building (on the floor) and that of the land is called floor space index, shortly and popularly known as FSI. The FSI varies from 0.6 and depends upon the location of the site.
Some builders construct a house, which may deviate from the approved plan or permit. The construction agreement may be cleverly prepared such that the purchaser shall be responsible for all the deviations. Some times, the builders may violate the rule or any section or provision of the related Acts. If the agreement is not fully understood by the purchaser, the builder is not at all responsible for any deviation or violation of the building. On later days, the penal charges levied by the government bodies or the demolition proceedings shall be borne by the purchaser only.
Hence, it is advised to ask the builder to produce the approved plan of the building and if convinced, to make the plan as part of the agreement. It is also advised to get assistance of a property consultant.
* If you are going to purchase a flat, you must keen on common area. The open area around the building shall be the part of common area. All the owners of the flats own each and every square millimeter of the common area available in the building. All the owners are called as co-owners of the property.
Some of the small-scale builders may convert the common open area as car park, allot it to purchaser and even sell it to the purchaser.
In other words, the builder sells the Common area to the purchaser. It means that the builder sell the area to the purchaser that is already owned by him, along with the other co-owners. It is against the law.
Hence, it is advised to ask the builder to produce the approved plan of the building with reference to the boundary of the land and to attach the plan of the building and the car park as parts of the agreement
* If you are going to buy a flat or an individual or semi-independent house from a builder or property developer. Make your own arrangement for housing loan, etc. In some cases, the builder may suggest you that he has known loan agents/ representatives. He may advocate that the legal vetting has already been completed and hence getting of housing loan shall be easy.
If you accept it, you have to be careful on signing the loan documents. Generally, banks shall disburse the loan amount to the builder directly in 2 to 3 installments after getting your consent. In some specific cases, if the borrower, i.e., yourself, agrees, the bank shall credit the entire loan amount into the builder’s account.
Here, the builder may get such letter from you. Without knowing the fact, you sign in these papers. After getting the entire amount, you will not in a position to extract work from the builder. You may not get the good flat/ house of your taste and expectation and it shall be beneficial and profitable to the builder.
But in some cases, the builder may run away from the site when the building is incomplete. You will not get the property but have to re-pay the loan amount.
Hence, it is advised to make your own arrangements for housing loan. If the builder arranges it, go through housing finance documents thoroughly before signing it. You may get a consultant’s opinion that may help you.
* Generally, the water requirement for a family is about 400 ~ 500 liters per day. Hence, we may have to provide a water storage [over head tank] of capacity 500L The builder or the property developer may not provide the tank of adequate capacity
This may lead to frequent emptying of tank and needs frequent refilling. If only one motor is available and it is maintained and controlled by one person or by the association it will lead to quarrel between occupants.
It is hereby advised to discuss the capacity of water tank in advance and to enter the same in agreement.
* Before buying the plot, be sure that it is saleable. Ensure that land is not a ‘Porampoke’ one and affected by any provision of ULC Act
Please consult a learned property counsel who will guide you on this aspect you can these details from Taluk office too.
* Before buying the plot, be sure that it is saleable and the so called vendor has all the right to sell it. Then find how he got the right. To find the clear title and rights you may have to get EC.
To ensure that the vendor has absolute right and clear marketable title, one should carefully and minutely scrutinise all the documents right from the root of the title to the property. These documents are called as parent documents
If the person assumes title
ü By a sale deed, partition deed, settlement deed or gift deed, you may ask him to produce it and its parent documents
ü By a will you may ask him to probate it and to produce it and its parent documents
ü By intestate succession, you may ask him to establish his heirship by producing death certificate and heir certificate of the pre-owner
* Before buying the plot, be ensure that it has been approved by the competent authority. Verify the approval order, see the terms and conditions laid down there.
Confirm the name of the layout, its survey number, village number, etc. Some may use the name of the approved layout to an unapproved layout.
Verify the usage of the land for which it has been approved. Some portion of layout might have been reserved for schools, park or like common usage. Some may divide the portion into small plots and sell it as residential plots. This is against law. Don’t be the prey for this.
* Before buy the plot, visit the site with two good friends. Their opinion shall help you a lot.
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