Buying a home is one of the largest investments made by people in their lifetime. Any wrong decision, particularly in case of under construction properties, may lead to sizable troubles in the future. Several home buyers are still awaiting possession of their homes even after a decade or more, with numerous projects being junked or stalled, even after major payments were made dutifully by prospective buyers. Refunds are yet to turn up even after several years of legal battles. For lowering risks, there are some sources that buyers should always turn to.
The Co-Founder and Head-NRI Sales, Square Yards, Anupam Rastogi, states that home buyers should login to the RERA website and check the details of a promoter including the name, project details over the last 5 years and contact information. This will help buyers understand the builder’s overall competency. The RERA Act makes it mandatory for developers, projects and agents to get registration numbers. Every project should have its own registration number, mentioned in all communication and advertisements. Buyers should verify the RERA registration aspect on the website itself.
Rastogi states that buyers can also access details like project type, name, address, area, parking area, estimated construction cost, approving authority, project status, completion year and total project cost. Buyers should be careful about verifying construction work details in the project status section. Information like development pending, total amount collected from all allottees, amount invested in the project, delay in the project, reason for delay and expected date of completion will indicate the credibility of the developer according to him.
Buyers should also check the permissions and approvals obtained for any particular project. Developers also have to report details of cases filed against them. Other experts also feel that buyers should check the financial status of developers which is difficult in case of unlisted market players. Rastogi states that home buyers should verify aspects like whether developers have defaulted on payments to banks for loans, legality of a project and balance sheet. If it is an unlisted player, buyers may get information from the MCA (Ministry of Corporate Affairs) website courtesy the view public documents section according to him. He also states that they can check the CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) for checking whether the property is mortgaged with any housing finance company or bank.
Home buyers should also get feedback on after-sales service and construction quality from people living in properties developed by any particular builder. Home buyers can get an idea about the material quality, fittings and electrical equipment, amenities offered, whether they are separately charged or whether the cost is included in the total apartment cost as per Rastogi. He adds that home buyer feedback will help in taking the right decisions. Social media sites are ideal places to read about testimonials of fellow home buyers and clients as per Rastogi. Other experts also agree on newspapers and social media platforms like Twitter, Facebook and LinkedIn being helpful for getting information first-hand.
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Published Date: June 29, 2021
