Bengaluru market is vibrant now with numerous new projects added to it coupled with the renewed interest of the buyers. The realty market of Bangalore has flats for sale in almost all the upcoming areas of the city and the as the demand of the market is second to none, it had the least number of unsold stock.

 

Needless to say that the real estate market of Bengaluru caters to all sections of the society with construction of different category of buildings like row houses, apartments, villas and others. Thus there are different categories of builders, small and large as well as reputed and ill reputed ones in and around Bengaluru. Whether the buyer buys through own funds or through financed options, one should be cautious as home buying involves many complicated issues and there is no dearth of litigation in the real estate industry.

Must do Checks for the Home Buyers

Must do Checks for the Home Buyers

Project Selection

The builder’s credentials have to be verified and it’s better to see the earlier projects of the builder and talk with the residents regarding the construction and the builder’s record. The prices of similar projects in the area has also to be cross verified and evaluated for whether you are being priced fairly or not. One must also check the zoning clearances, water supply connections, provision of parking space, and litigation display boards if there is any.


Title Clearance

Most of the projects which do not get completed or lay incomplete due to litigation are mostly related to title issues. The prospective buyer can pay a token advance to the developer and procure the master file consisting of the copies of the entire land documents and then the search for the title should be done independently and the Title Search Report (TSR) should be brought. One can also procure a detailed encumbrance certificate (EC) from the sub-registrar’s office.

Approval of the building plans

No matter where the project is located, whether it’s inside Bengaluru or at the outskirts, the project has to be duly approved by the Bengaluru Development Authority (BDA) and not by any Panchayat or CMC. The approvals should have A Khata only of the entire land and the individual flats. The most prudent approach is to check the approved plans and the A Khata in the BDA office as there are many fabricated plans in the market.

License to construct, CC and Govt. clearances

 

The builder’s license from the BBMP or BDA has also to be checked to see whether the builder is a licentiate holder. The floor plan has to be checked to see the adherence of the construction with the approved plan. The buyer should verify the Commencement Certificate (CC) issued by the BBMP and also check whether clearances from Bescom, BWSSB, pollution Board, fire services and other approvals have been taken from the competent authorities.

Any loans procured by the builder  

It is fair to find out if the builder has any loan from the bank and has submitted the original documents to the bank as a mortgage on the basis of which the bank would have issued a letter of “No Objection” for the release of the undivided share of Interest (UDS) of the constructed area on the land. It should also be ensured that such mortgage transactions are registered and reflects in the encumbrance certificate (Form 15). Or else there is a probability of the builder procuring multiple funding from other banks who can claim and take possession of the apartments.

Flats in Bangalore

Flats in Bangalore

 

Periodic visits

The purchaser should visit the construction project periodically to oversee that the construction of the project is as per the plan, quality fittings are provided, and are according to the time lines prescribed in the agreement. The buyer should insist that the builder provides a copy of the CC to the purchasers issued by the BBMP. The builder is supposed to obtain the OC (Occupancy Certificate) from the BBMP within three months of the completion of the project without which the builder would not be allowed for the water and electricity connections as per the BBMP by laws.

The Builder’s Indemnity

The builder is supposed to give an indemnity bond and a “letter of undertaking and affidavit” which affirms that the builder will construct as per the approved plans and the Completion Certificate (CC) would be obtained within three months of the completion of the project.

MOE in case of joint construction with Owner

If the developer constructs the buildings jointly on a loan for construction it is right on the part of the developer to make the landlord a part of the Memorandum of Entry (MOE) so that they can’t deny the liability of the loan later.

Do the checks

It is prudent to get the document of MOU with the builder to be vetted by a lawyer as the terms and conditions are mostly in favour of the builder. Do not forget to check the carpet area which should be according to the agreement and should be duly checked and verified.

Key Takeaways of Checklist for Home Buyers

  • Whether the buyer buys through own funds or through financed options, one should be cautious as home buying involves many complicated issues and there is no dearth of litigation in the real estate industry.
  • The builder’s credentials have to be verified and it’s better to see the earlier projects of the builder and talk with the residents regarding the construction and the builder’s record.
  • The buyer should verify the Commencement Certificate (CC) issued by the BBMP and also check whether clearances from Bescom, BWSSB, pollution Board, fire services and other approvals have been taken from the competent authorities.
  • If the developer constructs the buildings jointly on a loan for construction it is right on the part of the developer to make the landlord a part of the Memorandum of Entry (MOE) so that they can’t deny the liability of the loan later.

 

Home buying is indeed an arduous and a lifetime affair and if it is also true that real estate is full of litigation and hassles. To make your home buying hassle free and make you first-time right when you buy your home, we have the eBook Comprehensive Guide for the Home Buyers absolutely free.

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