Important Things To Remember Before Buying A Flat

You don’t buy flats every day. Do you? Investing in real estate is one of the most important decisions of your life. It is the result of years of saving and planning. Hence, you shouldn’t let all this go waste. Proper research, planning and wise decision making is what is required at each and every step; right from selecting the location to deciding the monthly installments to be paid, you need to be aware of some key pointers ahead of buying a new flat.

Important Things to Remember Before Buying a Flat

Budget & Property Price
First and foremost, you need to fix a budget prior to selecting a house or a flat. When you know how much you are willing to spend, it becomes easier for you to shortlist a house. Don’t forget to compare the price of the property in question with the ones surrounding it from various builders to get an idea if the builder has offered you a genuine quotation or not. Portal listings, brokers of the area or newspaper listings are some of the sources from which you can get a comparison of properties in the area you are looking for.

Carpet Area of the Flat
Carpet area is the area within the walls of the flat. But many times the property’s area or the super built-up area i.e. the entire area including shafts, elevator space, stairs, the thickness of walls, etc. is listed. Sometimes, when a floor is shared between two owners, the prices of the common spaces are also shared between the two.

Land Record
You should always research the soil quality and topography of the land on which the house is constructed. Also, you must see to it that the plot should be clear of all dues.

Legal Check of Property
You need to confirm that the property is legally authorized to be constructed on the plot it stands on. The developer should have approvals and NOCs from Area Development authorities, Water Supply and Sewage Boards, Electricity Boards and the Municipal Corporation.
 
Apartment Possession
Delays in commercial and residential plans lead to delayed possessions of flats. As a buyer, you should have a clear calculation of the timeline for possession. Usually, a developer asks for a six-month grace period. However, it should be backed by a valid explanation.

Financing Banks
You should always know about the banks that are willing or unwilling to finance certain builders. Some banks do not offer loans to certain builders on account of their bad reputation. So, it becomes all the more important that you check with the banks that are willing to fund the project you are planning to invest on.

Builder-Buyer Agreement
You can book the flat or house of your choice by giving a token amount, in return of which you get an allotment letter. The buyer, bank and the builder then enter upon a tripartite agreement for the rest of the amount. This agreement needs to be read and understood in detail before signing it.

Location of the Flat
It is a mandatory thing to scan the area where you are going to be residing in. You need to check whether your flat is in a safe and secure place. You must also look for the important amenities, physical infrastructure and reach.

Additional Charges
Make sure that you read all the clauses of the documents in detail and understand the penalty clauses as well. In case you do not receive the flat’s possession within the grace period, the builder is supposed to pay you a monthly penalty. Additional expenses such as GST, home loan processing fee, stamp duty, registration charges, and all other charges should also be kept in mind.