Business Desk – Under-Construction Property: Purchasing a home or property is a major financial decision for everyone. Therefore, before purchasing any property, it’s important to understand its price, legal status, builder’s record, construction status, and future expenses. Especially when purchasing an under-construction property, buyers should exercise extra caution.
Under-construction properties can often be found at a lower initial price than a finished house or flat. Buyers may also have more options for choosing the floor, flat layout, and payment plan. However, there’s a risk of construction delays, cost overruns, and other project-related issues. So, be sure to check these five things before booking.
- Whether the project is registered under RERA or not
When purchasing an under-construction property, first determine whether the project is registered with the state’s RERA (Real Estate Regulatory Authority). Don’t rely solely on information from the builder’s website, brochures, or sales team. Visit the state’s official RERA website to verify the project’s RERA registration number, approved plans, and projected completion deadline.
Information available on the RERA portal can help buyers verify the status of the project and the information provided by the builder. If you have any doubts, it’s best to have the documents independently verified.
- Please check the builder’s past record.
Looking at a project’s attractive brochure and 3D design can’t accurately judge a builder’s capabilities. Therefore, gather information about the builder’s previous projects. See if the previous projects were completed on time and what the quality of construction was.
If possible, talk to existing buyers or residents. They can provide information about the builder’s quality of construction, amenities, possession, and post-possession services. While past records are no guarantee of future results, they can certainly provide an insight into the builder’s work ethic.
- Understand the entire cost, not just the price of the flat
When buying an under-construction home, don’t base your budget solely on the base price. In addition to the flat price, there may be expenses like floor rise charges, parking fees, club or other amenity fees, maintenance deposits, and applicable taxes.
Additionally, keep in mind the cost of stamp duty and registration charges. After taking possession of the home, significant expenses may be incurred on interiors, furniture, electrical appliances, and other essential items. Therefore, it’s important to obtain written information about all charges from the builder before booking to understand the total cost of ownership.
- Understand the risk of delay in possession
The biggest risk with an under-construction property can be a delay in completion. If the flat isn’t delivered on time, the buyer may incur additional rent or other expenses. Therefore, it’s important to read the Builder-Buyer Agreement carefully.
Understand the provisions regarding the agreed date of possession, the payment schedule, construction requirements, and the buyer’s rights in case of delays. Don’t rush into signing any document whose terms are unclear to you. If necessary, seek independent legal advice regarding the property’s relevant documents.
- Check out the property’s location and future prospects
When purchasing a property, don’t just look at the design of the flat or house, but also carefully examine its location. Visit the area where the project is being built at different times to observe the surroundings. Assess the distance to roads, public transportation, schools, hospitals, markets, and other amenities for daily needs.
Also, find out what future infrastructure projects are proposed in the area. New roads, metro, railway connectivity, or other development projects may impact future connectivity and property demand in the area. However, be sure to check the official status of any proposed project before taking it for granted.
Be sure to check these things before booking
Purchasing an under-construction property can be a good option for the right buyer, but rushing into it can be detrimental. It’s best to make a decision after carefully examining RERA registration, builder history, total cost, possession timeline, and location.
The most important thing is to not rely solely on verbal promises from the sales team. Whatever price, amenities, possession date, or other terms are being mentioned, be sure to verify them in writing in the relevant documents and agreement. This can help avoid many potential problems in the future.