Are you planning to buy your dream house? Have you made the final choice for your ideal home? Is your home loan approved? Are you also done with all major formalities?
If the answer to the above questions is a yes and you think the things ahead will go on in a smooth and orderly fashion, you may need to rethink.
Even with the major work done, one still has the big task of protecting his/ her dream from the legal traps. In such a case, there are certain points that need to be remembered and certain measures that should be taken against those tensions.
- Actual selling price of the house: According to the property agreement, the buyer is required to bear the purchase price of the house. This cost includes the utility expenses such as water, parking, electricity , various taxes levied, and at times registration costs too.
Alert Tips:
- One should read the agreement thoroughly and check for all details in the agreement including all the charges applicable.
- Get the agreement verified by a lawyer for any hidden charges, and get the same rectified (if any).
- In case of altering the original plan, ask for a sanction letter from the government.
- Actual size of house: In your house agreement, the size of the house is clearly stated, but it will also contain a clause stating that the plans, design and specifications to be temporary. So, you never know if you will actually get the same size for which you agreed upon.
Watchful Tips:
- It is suggested to do some research beforehand.
- It will also be beneficial to have a discussion with other buyers about the kind of problems faced by them.
- One can also try to include a clause in the agreement about the minimum and maximum size beyond which the size cannot be increased or decreased.
- The Carpet Area: The area of an apartment excluding the wall area is termed as the carpet area. This is the area where the carpet can be laid. Then, there is the built-up area which includes area of walls and the balcony, and the carpet area. This built-up area, along with common areas such as lifts, lobby, staircase, gardens, pool, etc. is termed as the super built-up area.
Tips:
- Always buy a property based on its carpet area.
- Always ensure that area is mentioned in the agreement papers.
- Try and include a clause for contract termination.
- Possession Date: The agreement will generally have a tentative date of house possession. Although, there have been instances where the possession date mentioned has been delayed for more than a year.
Tip: Check the construction progress often, and in person.
- Certificate of Completion: This certificate is issued by the municipal authorities, which is an establishment of the compliance with the approved plan. This certificate is required for house registration and other legal formalities.
Tip: Always ensure that the agreement states about the certificate.
Apart from the above mentioned, there are also certain other things that needs to be taken care of, such as: management of society, construction material quality and durability, etc. which should be clarified before making any agreement.
Facts are gathered by Ramalingam K (Chief Financial Planner)