What Should You Check When Buying a Property Under Construction

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Buying a house or an apartment is easily the costliest purchase in your lifetime. You need to make sure that you buy a genuine property, without any potential for disputes, and represents good value for money. Some of the top things you should check out before putting your money down to buy a property under construction:

Title to the Land 

The first thing on your buying a house checklist should be an inspection of the land title of the property. Verifying the land title protects you from entering into a deal with the potential of a dispute that can arise when another person claims that the land on which the houses under construction are built belongs to him and not the person to whom you paid your money. Typical records you can inspect include government survey records, property tax documents, and registered sale deeds.

Land Use Certificate 

You must also check if the sites for buying property on which your apartment building is being constructed lies in a residential zone. There have been many cases where developers construct residential buildings illegally on land earmarked for commercial, agricultural, and industrial use. You must avoid any investment in an apartment not in a residential zone despite assurances from the builder that everything will be sorted out before handing over the flat to you. If the proper land certificate is not available, the work of under-construction projects in Mulund East may be interrupted or even stopped permanently leaving you high and dry.

Construction Clearances 

A certificate of commencement issued by the development authority should be high on your checklist for home buying since it is a compulsory document for the builder to start the project. Since the certificate is issued after strict inspection and verification, it also means that the developer has done all the necessary paperwork and complied with all applicable regulations. Also, make it a point to get a copy of the layout plan so that you can keep tabs on the construction as it takes place. Check out the regional planning development master plan to see if the project complies with the land use. When buying an under-construction property, you must also find out if the project has received the various NOCs from the pollution board and fire department.

Verify the Sale Documents –

If you decide to buy a flat, you will need to enter into an agreement of sale with the property developer. You may also be issued a booking form to complete and submit. You will generally receive copies of the allotment letter and the sale agreement once the booking process is complete and you have paid the booking amount. It is a good idea to put copies of all the documents on your home purchase checklist so that you can have them checked by your lawyer and prevent last-minute disputes.

Once the builder informs you that the project is complete and you may take possession of your apartment, you should ask for a copy of the completion certificate issued by the local municipality. It certifies that the project complies with all the plans and regulations and is officially complete. You should also ask for the occupancy certificate that certifies that the project has adhered to all plans for power supply, sewage, drainage, water supply, etc. Obtain a possession certificate from the builder, inspect the premises to establish you have got what you have been promised, and register your apartment with the revenue department.

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