Why buyers face delay in getting apartments?
With an increased number of high-end apartment users, there are various problems which the apartment buyers are facing these days. One of the major problems is the delay in getting an apartment. Reasons like slow construction process, shortage of labour, costlier building materials, lack of liquidity and others are affecting the users especially those who have purchased residences in cities like Noida and so on.
Impact of project delays on the buyers:
Apart from just the above issues, a project can be delayed due to land acquisition controversies, wherein the developer has to pay a higher compensation to the farmers in most cities. There are various developers who keep their investors in dark by not revealing them the completion dates of projects, possession or compensation for delay. This in turn causes a lot of chaos midst people who have paid a large sum of money upfront by borrowing. There are also people who move in rented houses only with a hope that they can accommodate sooner in their new apartments. Perhaps, things do not happen the way they have planned.
Seemingly, when buyers face project delays, they experience a payment increase based on the regulatory policies. Also the service tax policy which was imposed by the government on the home buyers along with higher interest rates is another major problem. Also the rise in the property prices and the shift of the payment of property tax from the developers to the buyer are also to be considered. While the projects are still under construction and are delayed, the buyer still has to pay the service tax.
All these problems of a buyer have led to a situation wherein they have demanded the government for a fair compensation for the delays. However, the compensation which will be given to the buyer will be compensated with the last payable installment.
Ways to check project delays:
The authentication:
It is very important that a property buyer should check the relevant documents and the authentication of the project from the builder. The buyer can visit the developer’s office to check for the authenticity. Documents like the land ownership detail, land being approved for residential development, project clearance and layout approval, environmental clearance and others should be checked thoroughly. The most important documents are the sanctioned plans. If the sanction plan is tested while signing the deal, the buyer can confidently go ahead with the builder. All of these documents should be scrutinized well before choosing a developer and signing a deal. Also the property buyer can file an application to the PRO of the authority in order to verify the land title, approved building plan and the completion certificate of the property. All these procedures should be carried out in the earlier stages.
Opt for an online group:
It is always better that home buyers should be a part of an online group. In case if the regulator is absent, being a part of the online group will safeguard the interest of the home buyers. There are various online groups like Yahoo, Google and many more wherein one can either state a group or join an existing one. Doing this will help the home buyer to share his/her concern among members and get the right deals.
Go in for a construction linked payment plan:
One of the most important steps to minimize the risks attached with a delayed project is to go in for a construction linked payment plan. It is advisable for the home buyer that he/she should opt for a CLP at the time of signing a document. Although this plan is a little expensive, but is best suited for the property buyers.
