Purchasing a property is a high risk deal. It sometimes involves people’s life-savings of money. Every now and then we get to hear of property scams where a buyer was duped of their money. When purchasing a property a buyer needs to do thorough research at every step before making the investment. Thanks to the stringent property rules in metropolitan cities, buying properties in Delhi, Mumbai, Bangalore, Chennai, Coimbatore etc, has become less risky over the years. Still a buyer needs to be very careful to prevent any losses. If you are looking for house for rent in Coimbatore, you can read the following rules.
In case of Under-Construction properties
If the property you are interested in is under construction, get an accurate idea of the property’s progress. Especially in the case when you are buying the property directly from the developer. When no broker/ real estate agent/ property consultant is involved, the chances of the developer giving you inaccurate information are higher.
Firstly make sure that the developer has clear ownership of the land in which the construction is happening. Just an agreement between the original owner of the land and the builder is not sufficient. The project also needs to have an ‘Intimation of Disapproval (IOD)’. IOD is a set of instruction the developer has to abide by in order to legally construct the building. The IOD is usually valid only for a year and needs to be reissued if the project is not complete within a year. Additionally the project also needs to have a commencement certificate.
Especially when you are opting for a under construction property, make sure your builder is reputed. Do a check of his past records and see if he is known to comply with legal formalities and is transparent in his dealings. This cannot be taken lightly at any cost.
In case of ready- to- move-in properties
Your risk is greatly reduced when you purchase a ready-to-move in property, but there are still some things one should be careful about.
In this case ask the developer for approved drawings of the project, a copy of the IOD, completion certificate and clear land title. Ensure that the project is free of any debt and litigation. Also ensure there is a proper society body.
If you are buying a second hand property, then property transfer and re-registration should be done before handing over.
In case of redeveloped properties
Irrespective of the history of the place, the procedure for a re-developed property is the same as the one for a new property.
Now there are two scenarios
- Discussions regarding redevelopment are going on between the society and the developer, but no papers have been signed yet. In such a case buying into the project is as good as buying into a normal resale property.
- In the second scenario, there is an agreement between the society and the developer. Buy if one of the members wishes to sell his/her property and has found a buyer, then there are three parties involved in the transaction- the buyer, the seller and the developer. In this case the developer should be informed so that all the rights are smoothly transferred to the buyer.
If the building has been demolished before the buyer signing the papers, then again the permission of both the developer and the society is required, since even though the money has been paid to the previous owner, the transaction is still incomplete till the property has been built and the house is registered in the new owners name.
So a lot of caution should be exercised before buying a property. Consult an expert if required to prevent irreparable damage.