In the previous blogs we had explored ‘what’, ‘when’ and ‘where’ to buy or rent real estate properties from among 8 major cities in India. With the help of detailed statistics and infographics, courtesy of Economic Times, we gained some useful insights into the current real estate market scenario, which  helped us judge and make informed decisions about making an investment in the residential real estate sector.

In this last part we will consider the checklist and various options of ‘how’ to go about making an investment in residential real estate industry. So, let us begin with the checklist to make sure that the experience of buying your dream home goes as smoothly as possible.

For many average home buyers, buying a home is about making their dream come true backed by an investment with a life-time of saving for which they have worked day and night. While looking for a residential real estate, everything boils down to the price, location and amenities that comes with the residential real estate. But one of the most important aspect that skips the mind of most buyers is the legal issues attached with the documentation and to verify the credentials of the builder/developer.

Experts believe that most of the problems that people face while buying a home can be minimized if they take a few precautionary steps, which will go a long way in making the experience of owning their dream home worthwhile. It is advisable to bring in a lawyer to help in dealing with all the legal matters, but staying in the loop is vital to make the transaction as transparent and smooth as possible.

For Ready for Possession Flats

When buying a home from a real estate developer, you must always check two things. One is the ‘title’, to ascertain that the developer is actually the owner. To do this, one must check the title of the seller, which include

1. The sales deed
2. The deed of conveyance
3. The development agreement, &
4. The Power of Attorney (POA), if the developer happens to be the seller

It is also advisable to check the title transfers from the last 20-30 years, to ascertain how the transaction happened from between the first and the last seller. But there are chances that the builder/developer does not part this information, in which case you should ask for the last three documents listed above.

To ensure that the property is free from any litigation and any kind of associated debt, you have the right to ask for the following information from the builder/developer,

1. The approved drawing from the developer
2. Copy of the intimation of disapproval, and
3. Completion certificate
4. Occupation Certificate

Apart from the documents listed above, if the building has been completed for quite some time, you must ask for the details of the property taxes paid to the municipal corporation. And, finally if you are buying a flat in a co-operative society, then you need to ask for the following three documents,

1. The seller’s share certificate
2. No objection certificate, and
3. A letter from the society stating that the developer/builder is indeed the owner of the society, and that there are no liens against the flat and it is free from any encumbrances

If the Property is Under-Construction

When buying a property which is under construction, it is of utmost importance that the builder has the clear ownership of the land undergoing construction. One must go through the approved sanction plan, IOD and the commencement certificate issued by the municipal corporation. It is vital to establish the credibility and trustworthiness of the builder/developer, especially in terms of this track record for meeting deadlines, transparency and compliance with legal formalities associated with construction.

How to Pay for Your Dream Home

Following are the types of payment options one can opt for while buying your dream home.

Down payment

Making a full down payment can get you the maximum discount, if you can afford it. But this option might not be prudent if you think you may save more than the amount you will have to pay as interest for the loan of the same amount.

A word of caution, once you make the down payment of the entire amount, you will be at the mercy of the developer if there are any delays.

Construction linked

This is the best option if you cannot make the down payment. Instalments will only have to be paid on reaching certain construction milestones, and thus reduces the risks of any delays and keeps the developer/builder on their toes.

But the downside to this is that if you miss an instalment then you will be liable to pay specifies penalty.

Flexi Plan

This is a great option If you can pull enough cash to pay 50 per cent of the total amount. It is also cheaper by 6% than the amount to be paid in a construction-linked plan.

But if you want to opt out of this plan down the line than most builders will levy a hefty penalty.

EMI Sharing Scheme

This option is chosen by most average home buyers. This plan is best if you cannot afford to pay both rent and EMI at the same time and would want to make the payments only when you get the possession.

Under this scheme, the builder recovers the cost of interest payment from you by adding extra premium to the cost of the flat.

This brings us to the end, and I hope that this blog will help you make an informed decision when you go out looking for the home of your dreams. For information regarding our latest residential real estate ventures, and our special payments schemes and options when buying a home with Vatika Group, please visit our website @ www.vatikagroup.com