Due dili­gence a must be­fore buy­ing a high-end prop­erty

Premium prop­er­ties should have a great lo­ca­tion and have re­sale po­ten­tial

HT Estates - - HTESTATES - Shveta Jain

The de­ci­sion t o buy a house is al­ways crit­i­cal. Ir­re­spec­tive of the cost of the house, some core fun­da­men­tals have to be con­sid­ered be­fore a fi­nal de­ci­sion is taken. Be­fore buy­ing a unit, buy­ers should do their due dili­gence while iden­ti­fy­ing, ne­go­ti­at­ing and pur­chas­ing a house. While buy­ers of­ten take into con­sid­er­a­tion as­pects like the pur­pose of buy­ing res­i­den­tial real es­tate, the price, lo­ca­tion, con­nec­tiv­ity, and the in­fras­truc­ture, there are many pa­ram­e­ters that are ig­nored while buy­ing a high-end unit in In­dia. Some im­por­tant fac­tors that need to be borne in mind are:

Pur­pose of pur­chase: The buyer of a high-end prop­erty has to de­cide whether the pur­pose of pur­chase is for self-use or in­vest­ment pur­pose. This is the most crit­i­cal part that helps de­cide which prop­erty, in what lo­ca­tion, and at what price does one wish to pur­chase.

Real value of prop­erty: The prospec­tive buyer must de­ter­mine whether the price of a prop­erty is com­men­su­rate with the ex­ist­ing mar­ket value.

Re­sale value: Whether for self-use or in­vest­ment pur­pose, the prop­erty should have the po­ten­tial of re­sale in mid to long term.

Project ap­provals: The buyer should re­ceive a list of ap­provals that the builder needs to ob­tain, in­clud­ing build­ing plans and ap­provals from var­i­ous reg­u­la­tory author­i­ties.

Spec­i­fi­ca­tions: Fre­quent vis­its to the site is rec­om­mended so that buy­ers can as­sess the qual­ity of fit­tings and fix­tures. Such vis­its will en­sure that the promised spec­i­fi­ca­tions, as shown in the sam­ple flats, are ad­hered to.

Le­gal as­pects of pur­chas­ing prop­erty: Buy­ing a prop­erty in In­dia in­volves a great amount of pa­per­work and dili­gence, and the lawyers should be well-equipped to han­dle the en­tire process. Lawyers should con­duct due dili­gence to ver­ify the own­er­ship of the ti­tle over the prop­erty, or any en­cum­brances.

Buyer ag ree­ments: One must pay great at­ten­tion to the buyer agree­ment as it holds all the clauses, terms and con­di­tions and le­gal im­pli­ca­tions, for all par­ties in­volved. Dur­ing the process of buy­ing and ne­go­ti­at­ing, a buyer should be aware of all the clauses which pro­tect the rights, in­ter­est charges, penalty, de­fault charges for a buyer and clauses of re­fund of pay­ments, in case the de­vel­op­ment is not com­pleted or is scrapped.

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