10 Essential Questions A Buyer Must Ask Real Estate Developers In Mumbai

Purchasing a home is a significant event in any individual's life. Owning a home is associated with financial security and social stature in Indian society. The Indian middle class places a high emotional emphasis on property ownership. Even in practical terms, purchasing a home entails long-term commitments. As a result, property purchases should be well-planned and thoroughly understood.

Thus, it is critical to be informed about the process and to compile a pre-possession checklist, particularly when it comes to selecting the appropriate property and, in the majority of situations these days, selecting the appropriate real estate builders in Mumbai.

Following is a comprehensive checklist for all property fanatics that tackles 10 key questions to ask your builder before purchasing properties in India.

1. The Builder's Credibility

Most commonly, real estate developers in Mumbai are required to section off a portion of the land parcel to the government or municipal authorities as open space reservation (OSR), which can later be developed as parks, recreation areas, hospital grounds, or other public facilities. However, if the developers later install parking or new units on this portion of the land, it may create complications for the inhabitants and the surrounding community.

This is as critical as the emotional decision to acquire property; to ensure that what you desire is genuinely yours, free of future ownership, registration, or other legal issues. Make sure the following documents are in check:

• RERA certificate

• Property Tax Receipts

• Building Approval Plan

• The Title Deed

• Commencement Certificate

• The Release Certificate

• Encumbrance Certificate

• Building Completion Certificate (BCC)

• Local Municipal Corporation approvals

Inquire about the developer to produce the documents establishing his ownership of the land. Each plot is identified by a unique khasra number. Inquire of the builder for that number and verify the name on which the site is registered. You could retain the services of a lawyer to conduct the title search for you. Additionally, he can evaluate whether there is a legal issue over the land.

2. Check The Previous Records Of The Builder

You may inquire about the specifics of the work executed by the builder. How long did it take him to complete the same? Whether or not he acquired certificates of completion or occupancy for finished projects. You can also look up finished projects on the internet. It will provide an accurate picture of the builder's track record. It is critical to ascertain that real estate builders are not a fly-by-night operator and that they have a track record of compliance.

3. The Payment Terms Of The Developer

A buyer must verify the developer's payment conditions. This is to ensure that he is not confronted with unforeseen/disadvantageous conditions that result in payment delays, if they occur at all. Additionally, before purchasing a property, a buyer should ascertain the circumstances under which he or she may be required to relinquish the unit selected or cancel the investment entirely.

To protect homebuyers, the Indian government enacted the Real Estate Regulation and Development Act, 2016 or RERA Act. It will address the varied concerns of potential buyers.

4. Future Prospects Of The Location's Neighbourhood

It is beneficial to evaluate real estate developers in Mumbai along with premises' blueprint, floor plans, location and general neighbourhood, road accessibility, and the distinction between a standard and a premium property. If you are an NRI investor who will be unable to visit the site or the surrounding environment immediately, ensure that you send a reputable source on your behalf. Indeed, you should inspect and verify the property's legal documentation as well.

Additionally, conduct extensive research on the site to verify that it is convenient to schools, universities, supermarkets, and retail establishments.

5. Check For An Escalation Clause

Builder-buyer agreements frequently include a cost-escalation clause. It states that if the cost of construction materials or other inputs increases, real estate developers in Mumbai retain the right to increase the project's cost. Inquire about the builder's track record: has he previously used the escalation clause? Was he justified in enforcing the clause? Alternatively, choose a developer whose builder-buyer agreement does not have an escalation provision.

6. A Certified Copy Of The Agreement

While most real estate developers in Mumbai are reluctant to disclose a copy of the agreement before payment is received, you have the legal right to do so before payment is received. Most of the construction contracts are biassed heavily in favour of the builder, and the buyer is required to sign them. The fact that the builder would not listen to you once you have paid the booking fee is another reason why you should acquire a copy of the agreement in advance. It will provide you a clear sense of the scope of the project.

7. Occupancy Certificate (OC) V/s Completion Certificate (CC)

Before you move into a fully constructed home, it is critical that you obtain an occupancy certificate. Builders who deviate from approved building plans may find themselves rejected occupancy certificates by state officials on a number of occasions. Municipal and state authorities have the authority to order property owners to vacate illegally occupied apartments or to impose steep fines. Only with an OC is legal possession established.

Real estate developers in Mumbai submit an application for a Building Completion Certificate, also known as a CC, after the project is completed, and the local authorities grant a BCC if there are no deviations from the approved designs. Even acquiring OC is not possible without this information.

8. Various Payment Plans & Financial Schemes

It is critical to verify the financial schemes provided by the real estate developers in Mumbai and any associated banks that will provide financing for the programmes they offer. Prospective purchasers also benefit from a positive track record between the two.

Examine the payment plan to determine whether it is a construction-linked payment (CLP) or a possession-linked payment (PLP). CLP requires payment upon completion of each level, whereas PLP requires payment of 20%-25% upon booking and the remaining amount upon taking possession.

9. The Completion Date Of The Project

Typically, the builder-buyer agreement specifies a completion date for the project, such as 36-42 months from the commencement of construction. However, there is no specific reference to a start date.

10. Inquire About The Future Planning Of The Project

It is essential to confirm that the plans developers demonstrate are finalised. This contains unit plans, floor plans, and building plans, as well as complete project designs that feature a clubhouse, swimming pool, gardens, children's play area, parking area, terrace used for a running track, and sky lounges, among other things. Occasionally, real estate developers in Mumbai may alter these plans without notifying consumers; for example, a new skyscraper may be built in the space designated for a garden. As a result, these must be confirmed throughout construction and prior to ultimate possession.

Conclusion: Final Thoughts!

When it comes to purchasing a home, there are a number of factors to take into consideration. Everything matters: the location, the finance, the social infrastructure, the quality of the construction, the title deed, and the resale value. Before making a buying decision, it is vital to take the necessary time to thoroughly evaluate real estate developers in Mumbai with all of these factors listed above.

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