5 Things to know before you buy a house or flat

Ramalingam K- Director & Chief Financial Planner

More about the Expert...
Ramalingam K
www.holisticinvestment.in
Are you planning to buy your ream hou!e" #a$e you mae the final choice for your ieal home
an %u!t left &ith !igning of the hou!e agreement" '! your home loan appro$e" Are you al!o
one &ith all the other ma%or formalitie!"
'f the an!&er to the abo$e (ue!tion! i! a ye!) &hich ma*e! you thin* that half of your buren i!
gone an the thing! ahea &ill go on in a !mooth an orerly fa!hion) then you actually nee to
rethin*.
' !ay thi! becau!e) e$en &ith the ma%or &or* one) one !till ha! the big ta!* of protecting hi!+ her
ream coming true) from the legal trap! of the builer. 'n !uch a !cenario) !ome point! that nee
to be remembere an certain mea!ure! that !houl be ta*en again!t tho!e tric*!.
Actual selling price of the house: Accoring to the property agreement) the buyer i! re(uire
to bear the purcha!e price of the hou!e. ,hi! co!t inclue! the utility expen!e! !uch a! &ater)
electricity) par*ing) $ariou! taxe! le$ie) an regi!tration co!t! too) at time!. ,he builer might
al!o impo!e certain extra charge! on any of the!e thereafter.
Alert ,ip!-
.ne !houl rea the agreement thoroughly an chec* for all etail! in the agreement
incluing all the charge! applicable.
/et the agreement $erifie by a la&yer for any hien charge!) an get the !ame rectifie
0if any1.
'n ca!e of builer a!*ing for altering the original plan) a!* for the appro$al from the
go$ernment authoritie! in the form of a !anction letter.
Actual size of house: 'n your hou!e agreement) the !i2e of the hou!e i! clearly !tate) but it
&ill al!o contain a clau!e !tating that the plan!) e!ign an !pecification! to be temporary) &ith
the e$eloper re!er$ing the !ole right to ma*e any change!. 3o) you ne$er *no& if you &ill
actually get the !ame !i2e for &hich you agree upon.
Watchful Tips:
't i! !ugge!te to o !ome re!earch on the builer4! earlier pro%ect!) before going further
&ith any *in of eal.
't &ill al!o be beneficial to ha$e a i!cu!!ion &ith other buyer!) &ho ha$e alreay got the
po!!e!!ion) about the *in of problem! face by them.
.ne can al!o try to inclue a clau!e from hi! !ie in the agreement about the minimum
an maximum !i2e beyon &hich the !i2e cannot be increa!e or ecrea!e by the
builer.
The Carpet Area- ,he area of an apartment excluing the &all area i! terme a! the carpet
area. ,hi! i! the area &here the carpet can be lai. ,hen) there i! the built-up area &hich inclue!
area of &all! an the balcony) an the carpet area. ,hi! built-up area) along &ith common area!
!uch a! lift!) lobby) !tairca!e) garen!) pool) etc. i! terme a! the !uper built-up area.
Tips:
Al&ay! buy a property ba!e on it! carpet area.
Al&ay! en!ure that area i! mentione in the agreement paper!.
,ry an inclue a clau!e for contract termination) in ca!e builer pro$ie! a hou!e &ith a
le!!er carpet area than mentione in the contract.
Possession Date: ,he agreement &ill generally ha$e a tentati$e ate of hou!e po!!e!!ion.
Although) there ha$e been in!tance! &here the po!!e!!ion ate mentione ha! been elaye for
more than a year.
Tips:
Chec* the con!truction progre!! often) an in per!on.
'f you fin the progre!! !lo& compare to &hat it !houl ha$e been) &hich might elay
your po!!e!!ion ate) one can al&ay! pre!!uri2e the builer.
Al!o) forming a !ociety &ith other buyer! might al!o help in getting the thing! !pee up
at the builer4! en.
Certificate of Completion: ,he builer i! al!o !uppo!e to pro$ie a completion certificate)
&hile hanling the hou!e to you. ,hi! certificate i! i!!ue by the municipal authoritie!) &hich i!
an e!tabli!hment of the compliance &ith the appro$e plan. ,hi! certificate i! re(uire for hou!e
regi!tration an other legal formalitie!.
Tips-
Al&ay! en!ure that the agreement either !tate! about the certificate or ha! a clau!e !tating
the builer4! liability to pro$ie the certificate.
'f the builer elay! in the proce!! of pro$iing the certificate) o pre!!uri2e him &ith
other buyer!.
Apart from the abo$e mentione) there are al!o certain other thing! that nee! to be ta*en care
of) !uch a!- management of !ociety) con!truction material (uality an urability) etc. &hich
!houl be clarifie &ith the builer before ma*ing any agreement.
For thi! purpo!e) one can e$en try aing certain clau!e! in the agreement for the builer to agree
to your eman!. Al!o) becau!e there i! no inu!try regulator for !uch con!traint!) the be!t &ay
to hanle !uch i!!ue! i! to remain alert an a&are of your re(uirement! an ac(ui!ition!.
The author is Ramalingam K, CFP CM is the Chief Financial Planner at
holisticinvestment.in, a leading Financial Planning and Wealth Management company.
!"!# $5%&'()* 556.78 9 "+,T- .5'*($* 8:.87
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