Things To Remember While Buying Property In India

As a recent property buyer, I thought I'd blog about some common pitfalls while buying new property in India. Some of the points may be applicable only for property in Maharashtra.


1) Make sure the builder shows you that he has the title to the land. If there is TDR involved  then he should show that he has purchased the TDR for the land.
2) The builder puts up a board outside the land mentioning the name of the architect, the number of floors etc. Make sure that things like the number of floors that are allowed is accurate. For instance if he is selling you an apartment on the 6th floor and the board says he is allowed to build only 4 floors then warning bells should go off.
3) As the builder if the artist's impression he shows in the brochure is going to be the actual likeness of the building when its built. 
4) Ask the builder for a copy of the plan and blue print sanctioned by the municipal corporation. Get an architect to look at it and confirm point (3).
5) Ask an architect to measure the dimensions of your flat which are sanctioned by the municipal corporation and compare with the dimensions the builder shows in the brochure.
6) When doing the purchase deed, make sure that the items that are mentioned in the brochure (e.g. specific bathroom fittings, burglar alarms etc) are also mentioned in the purchase deed.
7) Insert a clause in the purchase deed that if the builder delays giving possession of the flat beyond a certain date then he has to pay a fixed amount for each day/month of delay.
8) Asking the builder to create an escrow account would be ideal to take care of item (7) but the builder is unlikely to do that except for very expensive flats or for an entire building.
9) When executing the purchase deed make sure how much of the flat is carpet area, how much is open terrace, common spaces etc. The builder should be charging less for everything else other than carpet area.
10) If you are creative and have your own architect/interior designer it is possible to get the builder to give you a raw flat at a lower rate i.e. it is the purchaser who will get his own guys to get plastering, tiling etc done as per his customised requirements. The advantage is that the builder will sell the flat to you at a lower rate and you can do the interiors as per your quality and design requirements and possible even earlier.
11) After getting the completion certificate, ask the builder to execute the deed of conveyance without which you cannot resell the flat.


I hope the above helps any potential buyers. Cheerio.