Buying a home is undoubtedly your single largest investment in a lifetime. You invariably have to rely on the goodwill of real estate builders to grab the best deal on your dream apartment.
The challenge is to judge the authenticity of intent on the part of builders so that you are not duped of your hard earned money.
Common problems you may face with immoral developers are undue delay in possession, construction on illegal land, decamping with your money, false promises of high returns per month or fixed rentals etc.
This blog offers you insights into ways to judge the genuineness of trustable builders and developers of Chandigarh and elsewhere confidently.
1) Verify the Credentials of the Builder
In order to ascertain whether the builder keeps his commitment, you can visit the projects delivered by him in past.
Interaction with homeowners would help you learn if they have received the apartments within deadlines, whether the homes are of superior quality, etc.
You can also exchange views with brokers and agents in the area to learn about the credibility of the developer.
2) Check if the Builder owns the Legal Title of the Land
The builder must hold the legal title of the land on which apartments have been erected, or construction is proposed. The title must be authenticated by valid and legitimate documents in case some other person is the land’s owner.
If the project is RERA (Real Estate Regulatory Authority) compliant, you can rest assured that there is no foul play. This would imply that the land is encumbrance free with no third party interest.
3) Ensure that the Builder has opened an Escrow Account
After the advent of RERA, real estate builders have to compulsorily open escrow accounts where 70% of the money collected from buyers from time to time would have to be deposited.
You need to enquire from the builder about the bank in which the said account has been opened for catering to construction and related costs.
The money would be released by banks in phases only after builders and developers of Chandigarh and other localities present concrete proof of completion of the previous stage of construction.
If the builder has opened the account, it means that he would not divert your money to other projects or deliberately delay the project by stating lack of sufficient funds.
4) Go through the Contract Agreement Carefully
Often an unscrupulous builder would be very friendly with you and fawningly concur with you on every point, but the true intentions would be revealed only through the sale agreement.
Always make it a point to go through each line carefully to detect the presence of cryptic clauses that may potentially leave you powerless in future.
You can also hire the services of a legal expert to understand if possession date, delayed possession penalty, payment clauses, and other terms have found adequate reflection in the contract.
5) Ask for RERA Registration Number
After registering with RERA, a number is issued to builder which he must disclose to prospective buyers.
This registration serves as a shield of protection for buyers as they can seek remediation of any compromise done by builders on project’s quality or other promised amenities like water and electricity supply, parking space, and paid facilities.
You can approach RERA officials for resolution of sticky issues within one year of taking possession of the property. So, if the builder is willing to share the registration number, his intent would be clean.
6) Check the Financial Standing of the Builder
You need to investigate about the sources from which the builder arranges funds, his credit rating and relationship status with banks or other lenders, and his ability to manage funds scrupulously in the event of a crisis or market turbulence.
If a bank has agreed to finance the project, it means that a thorough background check of the builder has been carried out.