Commencement Certificate (CC)
Verify if the builder has obtained proper CC from the BBMP.
Govt clearances
Obtain copies of clearances from Bescom, BWSSB, the pollution board, and fire service besides approvals for digging bore wells from competent authorities.
Loans taken by builder
Find out whether the builder has got any loan. The original documents of the land would be mortgaged to the banks who will have to issue a "letter NOC" for release of the undivided share of interest (UDS) of the land constructed area.
Also ensure that such mortgage transactions are registered and reflected in the encumbrance certificate (Form 15). Otherwise, there is a possibility of the builder getting multiple funding from banks which can take possession of the flats.
Don’t Miss!
Periodic visits: Purchaser should visit the project site periodically to ensure that the construction is as per plan, time schedule based on the agreement, and quality fittings & fixtures are used. Completion Certificate: The purchaser should insist and ensure that the builder provides a copy of the CC issued by the BBMP. Occupancy Certificate (OC): The builder has to obtain OC from the BBMP within three months of completion of the project obtainment of completion certificate. Buildings without OC are not entitled to power and water connections.
Indemnity of the builder
Since the project takes 24 months to 48 months for completion, an "indemnity bond" and "letter of undertaking and affidavit" should be taken from the builder confirming that construction will be as per the approved plan and the completion certificate will be obtained within 3 months of the completion of the project.
Land owner to execute MOE
If the project is under joint development and the builder has taken a loan, it is desirable that the landlords are made part of the Memorandum of entry, so that they cannot say later that they were not aware of the loan.
Legal documentation
Be cautious while executing the agreement with the builder. Read and understand the implications of conditions in the agreements since they are normally in favour of the builder with very little scope for legal recourse. It is prudent to have a legal consultant to vet the documents.
The buyer cannot go wrong if he/she follows the above safeguards, and thus prove the proverb "fools build houses and wise men live in them", wrong.
Don’t pay more for less
Flat area: Get the apartment measured to verify the carpet area. Builders sell on the basis of super built up area, which includes balconies, common utilities such as swimming pool, gym and staircases, due to which the carpet area gets reduced drastically. Normally, the difference is around 15-20 %: an apartment with a super built up area of 2,000 sqft generally has a carpet area (actual usable area) of only 1600sqft.
Keep a record
Master File: Maintain a "master file" consisting of all documents such as copies of receipts of installments paid, title search report of the project flat, plan approval copy, agreement of sale and construction, commencement certificate, and the "Occupancy Certificate".