How to buy a Property

Buyers Guide
How to choose a Property

Anybody wishing to book a flat with a builder / promoter in India is expected to keep in mind following few basic points before deciding to book a flat on ownership basis.

- About the builder / promoter
- About the title deeds
- Inspection of Plans/Drawings
- Area, number of flat etc.
- Amenities/specifications
- Nature, extent and description of common areas and facilities etc.
- Possession
- Mode of payment
- Permissions under Urban Land Ceiling and Regulation Act 1976
- Out goings
- Stamp duty and registration
- Form No. 37-I

About the builder / promoter:

• The reputation of the promoter / builder
• The number of buildings/projects that the builder has completed in the past.
• The quality of the construction in respect of buildings completed by the builder/promoter
• The financial standing of the builder/promoter
• Adequacy of the technical staff employed with the builder.
• His past dealings with the customers
• How are his past dealings with the customers?

About the title deeds

• The flat purchaser should be shown the relevant documents regarding title of plot on which the building is proposed to be constructed
• The title certificate should be from a reputed Solicitor / Advocate attached to the agreement
• The builder should have annexed the description of land in detail in the form of schedule in the agreement
• All information regarding the encumbrances should be brought out clearly
• The extract of property register card or other revenue record of the land/plot on which the flats are going to be constructed should be attached to the agreement for sale.

Inspection of Plans/ Drawings

• The builder should have got the approval of plans / drawings from the Municipal Authorities / Local Authority
• The builder should have shown to the flat purchaser the approved plans/drawings to the flat purchaser
• The builder should show to the flat purchaser the copy of commencement certificate (C.C.) and Intimation of disapproval (I.O.D.)

Area, number of flat etc.

• The serial number of flat, floor at which it is located, name of building/wing should be distinctly indicated in the body of agreement
• The carpet area/built-up area of flat should be distinctly indicated in the body of agreement?
• The dimensioned floor plan marking the subject flat should be annexed to the agreement
• The plan referred to in (iii) above should be duly signed by builder at the time of execution of the agreement.

Amenities/ specifications

• The builder should annex with agreement a schedule of amenities/specifications (type of construction, flooring, doors, windows, sanitary and water supply, electrical fittings)
• The sale agreement in accordance with the conditions laid down by the Urban Land (Ceilings & Regulations) Authorities

Nature, extent and description of common areas and facilities etc.

• The agreement for sale should describe distinctly the common areas and facilities (such as entrance hall, foyer of building, compound wall etc.) and limited common areas and facilities (landing in front of staircase etc.), percentage/interest of flat purchaser in common areas and limited common areas/facilities.

Possession

• The date by which possession of the flat is to be given specified in the agreement for sale
• Provision in the agreement for refund of the amounts due by the builder alongwith simple interest @ 9% per annum from the date of receipt by builder till the date of refund in the event of failure of the builder to give possession of the flat by stipulated date or mutually agreed extended date.

Mode of payment

• The mode of payment of instalments should be distinctly mentioned in the agreement for sale

Permissions under Urban Land Ceiling and Regulation Act 1976.

• The builder should have obtained permission of the competent authority under Urban Land Ceiling and Regulation Act 1976 for developing the land/plot on which proposed building is to be constructed
• The sale agreement should be in accordance with the conditions laid down by the Urban Land (Ceiling & Regulation) Authorities

Outgoings

• The builder should mention in the agreement the amounts payable by flat purchaser on taking possession in respect of legal charges, share money, application entrance fee of society, charges for formation and registration of the society and proportionate share of taxes and other charges

Stamp duty and registration

• The flat purchaser should be aware about the quantum of stamp duty payable by him at the time of execution of agreement
• The flat purchaser should be aware that the registration of agreement in respect of flat purchased from the builder is compulsory
• The flat purchaser should be aware of the amount of registration charges payable by him
• The flat purchaser should be aware of the fact that the time limit for registering agreement for sale is 4 months from the date of its execution.

Form No. 37-I

• Filing of form no. 37-I under chapter XX-C of Income Tax is to be filed in respect of transaction of subject flat?
• If answer to i) above is in affirmative, is the flat purchaser informed about the procedure for filing form no. 37-I?
• Is the flat purchaser aware of the implications of filing form no. 37-I?