While looking for your dream home, you will come across a number of properties that are in different stages of construction i.e. pre-launch, under-construction or ready to move-in. Among these three stages, the under construction stage is the most attractive one from buyers’ point of view. It calls for lesser risk than pre-launch stage and the price is lesser than the ready-to-move-in property. However, we should always keep in mind that it is not a completely risk-free affair. There are few things you need to be cautious about while buying an under construction property.
Check the Legal Status- As a customer, you should never hesitate about running a background check on the legal status of the property. Ensure the property’s ownership. Also, seek the legal report of the project’s construction in order to ensure that the construction goes on as mentioned on papers.
Bank Approval- A larger percentage of the buyers purchase the property through a home loan. In such case, it is very important to make sure that the project has received the proper approval from the banks. If not, things can get a lot messed up in the later stages.
Payment of Booking Amount- This is something you should never be careless about. Once you pay the booking amount to the developer, get a receiving for the same in writing. Ask for the allotment letter that should also mention the exact details about the property you have to put your money in.
Payment Plans- For an under construction property, the best payment plan is the Construction Linked Plan (CLP). Since consideration under this plan is directly proportional to the stage of construction, you will have to pay the next installment to the developer as and when the next stage of construction starts or as mentioned in the Sale Agreement. So accordingly plan for it beforehand.
Getting the Possession Letter- After the construction of the property is duly completed, ask for a possession letter from the builder. Do not proceed to move into the new home before getting the same.
The documents you should seek from the developer include the commencement certificate, building plan and layout duly approved by the authority, bank approval, sale agreement and development agreement. The sale agreement is drafted by the developer’s lawyer and are generally targeted at saving the builder from later troubles. Hence, you should read every single clause before investing your hard-earned money.
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