For a majority of people, buying a home is a one-time exercise and is – more often than not – used for generations, while others may buy it for investment purpose considering the attractive returns in the highly lucrative property market. Keeping this in mind, it is important to have thorough information about the project and the developer before investing in any residential property. India’s booming real estate market has provided home seekers with a wide range of options, depending on one’s requirements and budget. It is, therefore, extremely essential to educate oneself about the dynamics of home buying before setting out to purchase one’s dream home.

Sadly, there is a lot of speculation and ambiguity in the Indian real estate market and it is not easy for developers to instill confidence in home buyers with regard to the credibility of their projects. At present, prospective home buyers in India find it difficult to get credible information relating to a potential property and this vagueness pertains to land records, quality of construction, finances and background of the developers. Home seekers are often exposed to various pitfalls whilst purchasing a home, but they can clearly overcome these challenges.

provided they continuously follow the guidelines:
Research and detailed analysis: Nowadays, there are several websites available to get adequate information, and also personal attention is possible thanks to professional real estate agents. Doing your ground work before getting into any kind of transaction and saving yourself from any kind of fraud involves doing regular field visits on the assessment of land, demand in that market, existing price in that particular area or nearby locations, the profile of the developer, the kind of facilities available there and so on. When you set out to purchase a house, you need to lay down clear objectives, right sizing the square footage, preferences in terms of amenities required and other income related factors. To have knowledge about the delivery of the project and the problems or inconvenience faced in case there is any delay or default in delivery should also be kept in mind.

Watch out for unclear land titles: It is very imperative for home buyers to safeguard their interests while buying a house, firstly by increasing their level of awareness about the property. Home-seekers need to ensure before making their investment that the property they are investing in has a clear land title. There is a possibility that one may invest in a project that has been launched, but later gets stalled because of unclear land titles.

Documentation check: Check the fundamentals of the sales deed, see if the pricing is right, and see if it suits your budget and that the legal documents are in order. To keep a track and make sure all relevant documents are in place is of utmost importance like the Agreement of Sale which includes all the terms and conditions of the transaction and all vital information concerned. The entire transaction should be done with strong groundwork, proceeding further with sufficient knowledge and the relevant documents in place so that your interest is safeguarded in the long run.

Clarity on area of the apartment: Get clarity from the developer with regard to carpet/ built up and super built up area before investing in a property. This will help understand what one is paying for & whether the area such as garden, space, parking, recreation space, etc, whether included in the price component and to what extent.

Assured amenities and facilities: Sales agreements and brochures comprise of a list of amenities and facilities that are assured by developers at the time of purchase and are part of the total price component. These are generally developed and available to the customer once the project is completed. However, in some instances developers delay or fail to provide these amenities post possession of the apartments. Keeping a track and inquiring on a regular basis on the status of what is assured, and what is delivered eventually by the developer, is of utmost importance.

Expenses and taxes: Buyers must figure out monthly expenses like insurance, EMIs, expenses on utilities, maintenance and property taxes. Also, check that the place is easily accessible and is not under any kind of legal litigations. You must be very particular about the kind of materials used for the project, including modernised automated facilities. Basic home price and charges like External Development Charges (EDC), Preferential Location Charges (PLC) should be carefully looked into before finalising any kind of transaction. It is vital to get your financing in place before going forward with the transaction, keeping in mind the fine print that includes the terms and conditions, not forgetting to read them properly with regard to the applicable conditions.

Standard Agreement of Sale: The standard agreement of sale includes basic information required to move toward the final purchase. This includes the names of both the buyer and the seller, contact information for each along with the terms and conditions related to the sale, including the purchase price, the terms of delivery, and any conditions that either party may invoke to halt the purchase. The text must also feature a more or less complete description of the goods or services that the seller will render to the buyer. With regard to the document prepared it is very essential to understand how it is viewed in the local setting which will make it easier to choose a course of action if some circumstance not covered in the body of the agreement should arise.

These simple guidelines will not only help you in choosing your dream home without hassles but also in making safe investments.

Source: 30.May.2011, realtyplusmag.com,