Risks while buying a home

Q: What are the risk I might have to face while buying a home in Bangalore?

Kailesh, Bangalore

26th February 2015

Buying property in Bangalore

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buying property in bangalore

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The list given by Mr. Chandrachur is comprehensive.I would like to add few points to it.
1. Going for a builder who is not honest. How can you know. Just check how he constructs the house/apt - if there are no offsets, uses very cheap material, vialotes bylaws building 2 or 3 floors extra and thinks that he could violate and bribe the authorities in every damn thing.
2. Go for already built apartment than booking an apartment. Basically, you see what you get. Now it is a buyers market, there are lot of apartments which have be built and not selling. So take the opportunity and get a good home.
3. If you are buying a site, go for a BDA site. Though the premium might be 20-40% more. You won't have any legal hassales.
4. Most of the big builders get you the OC - Prestige, Bridage, Sobha, but the price of the property is much higher. It is always advisable to get the OC as it would help you in reselling the apartment.
5. Get a loan from SBI
Please research before buying any home

vishnu sr, Bangalore

2nd March 2015

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Thanks for the elaborate reply... It is really informative... What if the project I am interested in is a joint development between the builder and land owner?

Kailesh, Bangalore

26th February 2015

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If the project is under joint development and the builder has taken a loan, it is desirable that the landlords are made part of the Memorandum of entry, so that they cannot say later that they were not aware of the loan.

Darshan Shetty, Bangalore

26th February 2015

I second you Mr Darshan, there are few more thing a purchaser should look into 1) Title clearance: Once you short list the builder and the project make sure that the title of the land is clear -most litigation are on account of title issues resulting in incomplete projects.

2) Building plan approval: In general, the layout plan and the building plan of all apartment projects has to be approved by the BDA and not by any panchayat or CMC even though the project may be coming up on the outskirts of Bengaluru. The approvals will have A khata only (entire land and individual flats). Check if the construction is as per the approved plan as builders tend to violate Floor Area Ratio (FAR).

3) Licence to construct : Check whether the builder has obtained proper licence from the BBMP or BDA to construct the property. Check the original plan approval with the floor plan approval of the apartment to ensure there are no deviations violations.

4) Verify if the builder has obtained proper CC

Chandrachur, Bangalore

26th February 2015

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To be continued:

5) Govt clearances: Obtain copies of clearances from Bescom, BWSSB, the pollution board, and fire service besides approvals for digging bore wells from competent authorities.

6) Loans taken by builder : Check if the builder has got any loan.The original documents of the land would be mortgaged to the banks who will have to issue a "letter NOC" for release of the undivided share of interest (UDS) of the land constructed area.

7) Periodic visits: Purchaser should visit the site periodically to ensure that the construction is as per plan, time schedule based on the agreement, and quality fittings & fixtures are used.

8) Legal documentation: Be cautious while executing the agreement with the builder.

9) Flat area: Get the apartment measured to verify the carpet area. Builders sell on the basis of super built up area, which includes balconies, common utilities such as swimming pool, gym and staircases, due to which the carpet area gets reduced drastically

Chandrachur, Bangalore

26th February 2015

Things you should look for before buying a property are: verify the credentials and track record/ past record of the builder, the quality of construction, facilities offered and prices of similar apartments in the area. Keep in mind about water supply, parking space zoning clearances and litigation display boards.

Darshan Shetty, Bangalore

26th February 2015

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