HOME SWEET HOME THINK AGAIN

Once you have identified your house, you have got your loan approved and you think you have done it all …. Is that true?  Think again, it’s your sweet home after all.

Once the formalities are complete, you should make sure you are not in any legal trouble. There are some very important parts that you need to take care off.

Let touch base with few of them:

What is the correct price of the house?

The agreement that you enter with the builder mentions all the cost plus some additional cost like electricity charges, maintenance charges, parking space charges, registration charges and various levies or taxes. However the builder may include some abysmally unwanted charges under various heads which may come as surprise factor.

Intelligence

>> Make sure you get the agreement vetted by a experienced lawyer for any anomalies in the agreement.

>> Check the agreement for any uncalled for charges.

>> If there are any extra charges for alteration in plans, ask for building sanctions provided by the government authorities for the project.

What is the correct size of your house?

The agreement will clearly mention the size of your house that you are purchasing. However the agreement may also state that “designs are tentative and builders have right to change or modify the plan”. Hence the size of the house delivered to you would be different than originally stated.

Intelligence

>> Before committing to buy the property do some research on builders past precedence.

>> If possible, get in touch with customers who have purchased property from builder and take feedback.

>> Include the minimum and maximum size of the flat in the agreement so that builder can not deviate beyond these thresholds.

The actual area of your house?

The actual area of your house the area within the walls of your house, not counting the square feet’s under the wall. This area is commonly known as carpet area. The area including the wall and balcony is known as built up area and the area consisting of common zones of property like garden, lobby, lifts etc is known as super built up area.

Generally the carpet area of you house is 15-30% less than the super built area, which is being quoted by builder while getting into an agreement. This factor is unverified till the construction of flat is complete.

Intelligence

>> Purchase the property on the basis of carpet area of

the flat.

>> Ensure that this area is mentioned in the agreement.

>> Ensure a termination clause with builder, so that the agreement stand null and void if the carpet area provided is less than that mentioned in the agreement. Also builder needs to refund the amount along with interest in such scenario.

Project completion / possession date

This is big problem in the industry. Builders normally do not provide flats on time. There are lots of instances where the builders have delayed the projects by over a year or so.

Intelligence

>> Monitor the construction activity periodically.

>> Create an owners group and deploy third party monitoring company to provide update on construction status.

>> If the builders in not undertaking the project in time build pressure on builder by forming an owners group.

Completion Certificate

When you get keys to your house the builders needs to provide you with completion certificate. This certificate is necessary for registration of your house and various other formalities.

Intelligence

>> Make sure that agreement mentions “Completion Certificate” clause, wherein builder states that they will hand over the completion certificate on handing over the house to you.

>> If the builder delays a lot form an owner’s society and put pressure on builder to provide the same.

Quality of construction and warranty period

It’s a menace in the industry that you spend your lifetime savings to get your dream house and its starts falling apart in no time at all.

Intelligence

>> Ensure that the agreement mentions all the brand and quality of material that are being used in the construction of the project.

>> Form an owner’s association and get it verified by an expert on regular basis.

>> Include a “Warranty period” clause in the agreement which binds builder to rectify the any fault due to wearing of construction.

Since there is no regular in for this industry, you must use the legal agreement as much as possible to get the best that you need. This will ensure that you get what you have paid for, after all its you Home Sweet Home.