Fear of losing property clouds residents of Mumbai

Owning a property in land-starved Mumbai is always on the off-chance. To make matters worse for the home buyers, authorities further announced demolition of certain buildings for violation of rules and norms the residents were not aware of.

Trouble clouded most of the residents of Mumbai, as BMC issued the orders for demolition of certain buildings in the city which violated the regulations of the government. Such violation of rules generally impact the beleaguered residents of the residential compounds.  The Campa Cola compound in Worli, Mumbai has a similar story to tell.

In this regard, property consultants suggest that home buyers should not rush while going through the agreement before investing in a particular property. This is due to the reason that there are a number of critical areas which a purchaser must be familiar with before investing money in the project.

Permission to construct building

The first step before signing an agreement for a particular property is to find out whether the developer is equipped with a permit to construct buildings or not. If a particular land is not registered for residential use, then the builder needs to get the required permission from the authorities to turn the industrial land into a residential property. Executing the project without government approval is illegal.

Clearances

Before starting a project in Mumbai, a builder needs to acquire not less than 50 clearances such as procuring a clear title land, air traffic approvals, environmental clearance etc. Prior to buying an apartment, a buyer is required to find out if the local planning body has given the requisite approvals to the builder or not, such as the all-important Commencement Certificate.

Bank support

According to property consultants, one of the best ways to avoid investing in an illegal project is to be backed by banks. This is due to the reason that banks do not remit loans to projects, which display impending approvals, after a background check. Furthermore, banks do an extensive check on the land title for the last 30 years, before sanctioning the loan to any developer. Hence, all the possible fears of the home buyers in regard to irregularities can come to an end, if they are backed by banks.

Ownership

Before signing an agreement for the property, a buyer must find out whether the particular developer holds the right to transfer undivided shares of the land to every flat owner or not. According to property consultants like JLL, a buyer  must make sure that the particular developer does not hold any specific right of any part of the building (such as balconies or terraces).

Unseen costs

Sale agreement for a property is the most important document, to be taken care of during the transaction. To avoid getting trapped under any kind of irregularity, a buyer must read the sale of agreement properly. In most of the cases, developers charge an additional price for added features like designer furniture, swimming pool etc.

Realty experts suggest that investors looking to buy a residential apartment must conduct an extensive check on the property. Buyers must ensure that the particular builder has not flouted rules and is having all the required approvals from the concerned authorities.