Want to check out an under-construction home?

 Want to check out an under-construction home?

An under-construction property is enticing due to its many benefits like higher returns and customisation opportunities.  That being said, it comes with a fair bit of uncertainty as there’s a chance of possession delays which can lead to financial loss.  Follow these steps to avoid any such issues and ensure a satisfactory property acquisition.

Verify the developer’s background

With the real estate market booming, one can find various ongoing and upcoming housing projects all over the city.  As choosing the right developer is crucial for a low risk purchase, buyers must check the developer’s track record, financial statements, and credentials.  “On several real estate blogs and websites, buyers discuss and share their experience of dealing with different developers.  Such reviews help judge the developer’s capability.  With a developer who has a reputation for completing projects with quality materials in the specified time, homebuyers can mitigate potential risks and ensure they get what was promised.  If one intends to hire a realtor, “As many realtors work with developers and can offer biassed opinions, one must consult a trusted real estate agent.”

Perform the legal due diligence

Real estate dealings require multiple approvals from local authorities.  “One must conduct a few mandatory checks before purchasing a property, such as whether the project is approved by the Real Estate Regulatory Authority (RERA), to gauge the authenticity of the development.” Enquire about documents like the property title, commencement certificate (CC), and an approved layout.  Confirm if you will be provided with an occupancy certificate (OC) once the construction is complete.  Read all the agreements like the development agreement and the sale agreement to understand all the terms and conditions of the purchase.  Also, make sure that details such as the completion date, payment schedule, warranties or guarantees, and penalty clause in case of project delay are mentioned in the agreement.

Flexible payment plans

Under-construction homes come with several financial perks.  Buyers can opt for a construction-linked payment plan, which is spread across the duration of construction.  It limits one’s financial losses in case the project gets delayed or cancelled.  Some builders also offer discounts and options like zero EMI till possession. 

Survey the site frequently

Visit the construction site and evaluate the quality of materials to guarantee that the construction meets the promised standards.  “Examine the fixtures and fittings, electrical, mechanical, and plumbing work, cement quality, waterproofing, compliance with environmental and safety regulations, levelling of beams and columns, and state of the walls and tiles.”  Regular visits will also highlight the speed at which the construction is progressing.

Investing your hard earned money in a property that is not yet ready is risky.  But with planning and vigilance, you can make your investment in an under-construction home successful.