Dear members, I came across an interesting article on what should a buyer check before taking the possession of a under construction property.
Buyer’s checklist
If you are about to get possession of an apartment that you had booked years ago, thoroughly check what you are getting against what you have paid for. If it appears that the building and apartment has all the amenities, size of rooms is as per approval provided, fittings are as per agreement, and other details are in order, go ahead and take possession. But if things don’t match, raise all issues with the developer. “The buyer should make a list of the deviations, short-falls and flaws. If these can be corrected, the buyer should demand that this be done immediately,” said Santosh Kumar, chief executive officer, operations and international director, JLL India. Developers are bound to rectify or repair the defects. “There is usually a gestation period of 3-6 months for rectifying problem areas, which varies from developer to developer,” said A.S. Sivaramakrishnan, head-residential services India, CBRE South Asia Pvt. Ltd.
Most homebuyers don’t cross-check details. The relief of getting possession is so much that even if they see flaws, they let the issue go. “Tendency is to get busy with moving in. By doing so, they are missing the optimal window of opportunity to get any problems and deviations in a ‘bare shell’ sorted before they get obscured,” said Kumar.
It is important to check the details because if the apartment or project is not handed over in the required manner, it can lead to problems. “There could be larger security issues. In addition, such projects are usually not properly habitable, nor is it possible to maintain them properly when some construction is still going on,” said Sivaramakrishnan.
If the amenities are not in proper shape, maintenance cost can go up. “The average cost (per sq. ft. per month) of maintaining a residential housing complex can be in the range of Rs.2-3. Substandard construction and lack of proper amenities affects maintenance charges significantly, as repair and replacement can lead to high and frequent costs,” said Kumar.
A developer is liable to provide a project as per the agreement or as described. For any deviation or irregularities, it has to compensate appropriately. “If there are gross deviations in terms of size and dimensions, which cannot be corrected by remedial measures, it will probably become a case for the consumer court,” said Kumar.
Legal experts also suggest that in such cases homebuyers should stop any further or final payment(s) and insist that changes be made. “If on inspection, the buyer identifies shortfalls on the terms agreed by the builder, she should abstain from, firstly paying the instalment due at possession, and then propose cancelling the booking of the apartment with the builder,” said Divakar Vijayasarathy, co-founder, MeetUrPro.com.
If the developer does not make any corrections, homebuyers should first send a legal notice. “It is also suggested to send a formal legal notice for deficiency in service and that the final instalment is kept on hold till such time the anomalies are rectified,” said Vijayasarathy.
Even after this if the developer does not initiate the required changes, homebuyers can approach a consumer court. “Serving legal notice to the builder for initiating legal action at the consumer forum may be the only effective recourse. Where the society or association is already formed, a joint effort in serving legal notice is more effective,” said Vijayasarathy.
Mint Money take
Taking possession at any cost, whatever be the condition of the project or house, will be detrimental to your interests. Not only would you have paid for features that are not available, your quality of life and lifestyle may be affected. Need for regular repairs will escalate the cost of living. And, if you were to sell the house later, the selling price may be affected. Therefore, try to take appropriate action before taking possession of the house. As there is strength in numbers, get other like-minded buyers together and put pressure on the builder to follow the agreement.
Ready and in place
Documents: Ensure that the developer is handing over all necessary documents. The buyer should receive the possession letter, no-objection certificate, commencement and completion certificates, allotment letter, receipts for all payments rendered by the buyer up to this point and the development agreement. Developer should provide sundry maintenance contracts and utilities documents, such as for water, electricity and gas supply.
Final layout: Check the final size of the apartment. Measure the dimension of the rooms, living area, bathrooms, kitchen, balconies and others. The primary areas to focus on while doing a final check of the unit are the delivered carpet area, dimensions, windows, fittings and fixtures and the overall soundness of the construction.
Amenities: Amenities such as club, gym, park and swimming pool are difficult to have in an independent house but are a major attraction in bigger apartment projects. So, ensure that whatever was committed is in place.
Quality of construction: Construction quality plays a big role not only in future maintenance costs but also quality of living. Check if the flooring, tiles used and paint on walls are as per specification. A common problem area is fittings in bathrooms and kitchen. One should check for seepage of any kind; and all fittings including electrical and sanitaryware. Water and electricity supply should also be checked.
Source: Mint Money dated 29th July 2015