*"**What to ask the real estate developers?* *"*
*Like any another purchase, buying a property has its own confusions and
risks during decision making. A home buyer has to be sure that he/she
chooses the right builder and the right location within the right price.
From a personal point of view, every buyer does his/her best to verify the
property and have the best pick; however, we still see a lot of cases
wherein the buyer is duped and is eventually dissatisfied by the purchase.
Following the customer feedback, in this article, lists a few questions
that you can ask the real estate developers and then shortlist the
property.*
*Use of land*
*What is the use of the land on which the project is being developed? Is it
for residential or commercial property; floors or plots; how many floors
does it permit etc. It has been seen that often developers begin a project
and start to sell properties before land acquisition is over. A portion of
the land acquisition may be pending and might impact your apartment;
therefore, make sure to ask the developer and verify the land acquisition
documents. A home buyer should verify the papers demonstrating the
builder’s ownership of the land. You could also hire a lawyer to conduct
the title search and to find out whether there is a legal dispute over the
land.*
*What about the approvals?*
*A home buyer should check all the approval documents prior to finalizing
the deal. Check for the developer’s licence in order to check the
permission from the area’s town planning authority to develop the project
and approvals for building plan, water, environment and pollution, and
height clearance. If the approvals have not obtained, it is suggested that
a home buyer should not invest in that project as delay in approvals is of
the major causes of project delays. *
*Payment Plan*
*In the application form, pay attention to the payment plan. One should not
pay a large portion of the cost of the property at initial stages. It is
suggested that one should stick to a construction-linked payment plan or
one in which a portion of the cost has to be paid after possession. Another
area of concern is that the builders often include a cost-escalation clause
in the builder-buyer agreement, which states that the developer has the
right to increase the cost of the project in case the cost of building
materials goes up. Enquiries regarding the builder’s track record as to
whether he has implemented the escalation clause in the past can be made or
finalise a developer who does not include an escalation clause in the
agreement.*
*Delivery and its terms*
*Most of the agreements mention a time frame within which the developer
will give the possession of the property; however, the trick is that the
agreements do not mention the start date of the time frame. Enquire about
the start date and if possible get it documented. Also check whether the
agreement has a penalty clause under which in case of a delay in
possession, the developer will have to pay a penalty to the buyer. If the
clause is there, find out how much penalty he will pay and whether he has
paid it in the past.*
*Change in layout plan*
*Often builders bring about changes in the layout plan and show them as
beneficial for the buyer; however, the buyer should not be lured by the
increase in area of the property, instead at the time of booking, should
find out whether the builder has changed his plans in the past and what
were the terms of that. For example, if the area of the property increases,
the buyer will have to pay according to the original booking amount or the
current rate?*
*The extra charges*
*Check out the various heads under which the developer may ask the home
buyers to pay, for example, preferential location charges (PLCs), external
and internal development charges (EDC and IDC), advance maintenance fee
etc. Calculate what will be the purchase value after adding all these
charges and buy only if the sum falls within budget. There can also be a
case when the buyer falls behind in paying an installment; in that case the
buyer should be clear about whether the developer will give extra time to
pay up, what will be interest liability etc.*
*Record of the developer*
*The record of the developer includes his financial status and his
reputation as a developer. The buyer can verify a developer’s financial
status by asking for his company’s balance sheet. Do not invest in the
project if his company is over-leveraged because it increases the
probability of delay in project completion. Moreover, find out how many
projects the developer has completed, whether there were legal issues in
his past projects, whether the projects were delayed, are the current
occupants satisfied with the construction etc.*
*Source : Makaan Research Team*
Real estate bill is beneficial for home buyers !
*With the approval to the real estate bill, there was quite an emotional
upheaval in the real estate industry and most of the key players commented
on the update. Post the real estate regulation bill, the property players
hope to see a transparent and uniform environment. It was a debate on
whether the home buyers will have benefit from the step or the provisions
are very harsh on the developers. But what is the take of the home buyers?
Will now their property buying process be less time consuming and more
assuring? A survey conducted with the end users directly as to whether they
think that the real estate bill will be beneficial for them and the maximum
people voted in affirmation.*
*The following are the benefits that the home buyers can expect from the
real estate bill: *
*• Increased transparency and uniformity*
*• Strict guidelines on advertisement and prospectus will stop
misguiding the buyers*
*• Provisions for claiming compensation for loss caused by misleading
statements*
*• Selling based on carpet area*
*• A project cannot be launched until all the approvals from authorities
are achieved*
*• Developers will be required to put project-related information on
their websites*
*• Setting up of an appellate panel to take up disputes between buyers
and builders*
*• Speedy resolution of issues such as delays and change in
specifications*
*• Fewer possibilities of project delays being caused due to absence of
necessary approvals*
*• A buyer can claim refunds if a project is delayed*
*Buying a home is one of the most significant financial investments that
one ever makes; therefore, it is only advisable to do a proper market
research and survey prior to finalizing anything.*
*Source : Makaan Research Team*
Things to keep in mind after selling a home
*The present slow-moving real estate market has posed the maximum
competition for the sellers. Everyone who is in a need to sell his/her home
is in a race to attract buyers, follow the various advices given by experts
and do their best to extract the best deal. After listing the home,
following the best approach to sell the home fast, and handing over the
keys to the new owner, the seller takes a sigh of relief. However, there
are a few minor steps still left in the selling process. Even after selling
the home, the ex-homeowner should take a few steps to invest the money
safely and ultimately save money.*
*Once you sell the house, you should safely keep all the paperwork related
to selling and handing over of the property. The paperwork will help in any
issue that you might have in the future regarding the previous dues of the
property. The paperwork also helps in filing of the taxes and for producing
the documents in case the authorities demand them. Apart from the sale
documents, one should also keep proof of all the prior purchases, property
tax receipts and any major installments done in the house.*
*After collecting the money from the sale of the house, choose your next
home very safely. One should not be pressured and should take ample amount
of time while deciding the next purchase. As buying and selling require
different skills, a change in the agent can also be considered. Hiring the
right agent is very essential for making the right purchase. *
*One last calculation that one should make is regarding the down payment.
It is recommended that 20% should be kept for down payment of the next
house. In case the purchase of the house is on the basis of full and final
payment, one should consider the future income and financial stability.*
*Source : Makaan Researach Team*
*Commercial properties have a potential to give good returns; therefore, a
lot of investors prefer commercial investments. Shopping malls,
multiplexes, IT spaces and branded retail outlets are among the most
popular commercial properties in India. With the mention of acquisition of
a property comes about a requirement of a loan. This article talks about a
few facts surrounding commercial real estate loan.*
[image: Inline image 1]
*Qualification for commercial real estate loan: The sanction for a
commercial real estate loan is a tedious and more complicated procedure as
compared to a home loan sanction. Almost all banks ask for several years of
tax returns in order to give a go ahead for a commercial real estate loan.
Moreover, loans for commercial properties such as eating joints or
restaurants are more challenging than loans for office spaces or retail
buildings.*
*Higher rate of interest: The commercial real estate loan has higher rate
of interest as compared to the rate of a home loan; therefore, anyone
applying for the loan should before hand calculate the re-payment capacity.*
*Vast documentation: The document scanning during a commercial real estate
loan is vast and almost tedious. Every legal document of the organization
starting from income statements to profit and loss statements, balance
sheets to statements of cash flow are required. Other than the documents
relating to the business, there is also a requirement of the personal legal
documents to evaluate the background.*
*Loan sanction: As there are numerous phases involved in commercial real
estate loan, the sanction of it from bank takes several weeks. Therefore,
make sure that you are really transparent and organized in your approach to
avail a commercial real estate loan.*
*The more knowledge you acquire about commercial loans, the better decision
you can make about the commercial real estate investment and the process
would also be easier and speedy.*
*Source : Makaan Researach Team*
END TO INSPECTOR RAJ
*Building completion certificate goes online*
Source Times of India
*KMC Has To Issue Certificate In A Week Or Specify *
*The days of harassment by building department inspectors are over. The
completion certificate (CC) process for houses and apartment complexes has
gone online. *
*Now, you can expect a CC within seven days of applying for it. The
e-process could root out the notorious inspector raj that has thrived in
Kolkata Municipal Corporation for two decades. *
*Earlier, building department inspectors had the discretionary power to
withhold CC indefinitely. It gave them the leverage to manipulate and
extort a house **owner or developer because without the certificate you
cannot apply for water, drainage or power connection. *
*There are recent instances of people not having received CC for a year,
without being told where they erred. This is why very often promoters avoid
taking a completion certificate and hand over possession to home owners,
who are unaware of the trouble that lies ahead. They cannot move in without
water and power connection but have to fork out EMIs. *
*“The computerized system has been introduced to strengthen our own network
where building department officials often fail to track down cases of delay
and harassment. Now we can trace **files faster,” said a KMC official. It
will also ease the process for issuing building plan sanction. Mayor Sovan
Chatterjee told TOI that KMC started issuing online CCs on November 22,
addressing a major concern among citizens and developers. “We are committed
to improving citizens’ services. The new system will curb harassment and
ensure timely completion certificates,” Chatterjee said. *
*Under the new rules, an inspector has to issue a compliance report or give
reasons for rejecting a CC within seven days. “This will increase
transparency and curb opportunities to manipulate owners or builders,” an
official said. *
*Representatives of Credai’s Bengal chapter welcomed the move. “This will
usher in transparency, end harassment and ensure faster development. It is
an extremely encouraging step,” said Credai Bengal vice-president Sushil
Mohta. *
*During a bridge-building meeting on Wednesday with KMC commissioner and
heads of building, assessment, project management unit (heritage,
waterbody), civil and law, Credai Bengal officials led by chairman Harsh
Patodia discussed several points where processes can be streamlined. *
*They suggested that KMC streamline the building plan sanction process on
land where no workshop or factory exists, simplify rules and relax height
restrictions for theeka land. Patodia said the industry’s suggestion had
been well received. *
*What is a completion certificate? *
*It’s a document that enables a house owner to apply for water, drainage
and power connections. *
*What are the requirements? *
*KMC buildings inspector checks if the owner/developer has fl
outed any
construction rule or deviated from the sanctioned plan. If satisfied, he
sends a report to the executive engineer of the borough for issuing a CC *
*How is a house owner harassed? *
*Inspectors could withhold CC indefinitely without specifying a reason. It
gave them the leverage to extort a house owner or developer *
*How is the new system different? *
*All boroughs will be connected to the KMC HQ online. An inspector will
have to submit the report within three days of visit and executive engineer
will be asked to issue a CC within seven days if no major deviation is
detected*
*Source : Times of India*
