Due diligence vital when buying a house
Make sure you ask for the chain of documents and go through the builder-buyer agreement carefully
Considering the number of disputes pending before various forums concerning apartment allotments, delay in completion, missing amenities, substandard quality of construction, wrongful cancellation, inadequate compensation for delay in completion, escalation and hidden costs etc, it is all the more important that care is taken at the time of booking an apartment to avoid any disillusionment and mental agony in the long run.
Chain of documents: The apartment buyer should demand the chain of documents which includes the rights and title of the land and the building in which the apartment has been proposed. It is important to know about all encumbrances on such land or building or any right, title, interest or claim of any person over such land or building. A clear statement with respect to any pending legal proceedings or order involving the land and building is important. Building sanction: The certified copy of t he building layout plan and the floor plan of the apartment building sanctioned by the prescribed authority with the seal and date of approval are also important. Buyers should see that the promises or claims by promoters match the sanctioned plans. The layout plans handed to buyers along with the sales brochure is not an authenticated document and may vary from the actual sanctioned plan. The copy of the licence issued to the promoter and the no objection certificate (NOC) issued by the fire department, airport authority and environment department should also be collected.
Deed of declaration: The promoter is required to supply the copy of the deed of declaration which gives the details of all apartments, the common areas and facilities, besides giving the list of common assets l ike water pumps, water tanks, lifts, and elevators etc.
Builder- buyer agreement: It is important to go through the contents of the builder- buyer agreement and ensure that the time of completion of the project is set out clearly. It is important to verify whether the developer will adequately compensate the buyer in case of delay in completion of the project and the duration within which a buyer can demand full refund and compensation on grounds of delay. It is important to understand the terms of exiting the project and the earnest money