“Get alarmed- Few checks on your Builder-

As it is very well said “An ounce of prevention is worth a pound of cure”. Looking at the rising cases of default on the part of the builders, it is advisable to take precautionary measures before buying any property. In order to facilitate effective and efficient process of buying property, it is worthwhile to keep a few checks on the developer-

1. Appointment/Selection of Builder –

The first and the foremost check that needs to be done by the people is of selecting the builder/approval. The bank provides a pre-approved list of developers which has been approved by a minimum of 3-4 recognized major banks. It is always advisable to choose from the list of approved developers. The list is prepared after a fair degree of due diligence by banks before lending to buyer/Developer loans for his projects. The name of the builder in the approved list will serve as proof of their skills in his field.

2. Conduct an Inquiry-

It is also advisable that people before buying the property can conduct an inquiry by visiting the previous projects of the builder and by interacting with the owners having property in that projects. This will enable the people to know about any transgression if any by the developer.

3. Assess Financial Stability-

People before buying property should check financial status of the developer. It is trouble-free in the case of approved developers as their balance sheet is public domain whereas care should be taken while dealing with unlisted developers.

4. Hire a Professional-

Before buying the property one should ensure that the developer owns the complete land on which the project is going to be made. It is beneficial to hire lawyers who will be able to do the title search of the property. Make sure the developer has purchased all the land required for building of project. In case of some parcels that still need to be brought, can lead to a court case which could prolong for years. If your apartment is positioned on such a part of land involved in dispute, one may not get possession even if the rest of the project gets completed.

5. Compliance with the authorities-

One should make sure that the developer has obtained the following documents necessary to start working on project such a license to start the project, environment clearance.

6. Research/Collect Online Information –

People can also go online and can gather information by taking the help of the various real estate panel discussion forums where builder’s projects are discussed and can obtain information from the same.

7. Realty Ratings-

CRISIL Real Estate Star Rating (CREST) is a rating agency which provides users with the city specific assessment of real estate projects. With the help of its ratings the CREST aids people to evaluate and classify the quality of projects.