Home BuyingThe real estate market in Bangalore is quite vibrant. The builders are developing villas and apartments of various categories to cater all sections of the society.  The built up area ranges from 650 sqft to 10,000 sqft with a price range of Rs 30 lakh to Rs 10 crore plus. There are about 5oo upcoming residential projects in Bangalore, leading to addition of around 60,000 units.

The buyers have a large range to choose from once he narrows down his budget and location. But along with an array of choices one needs to exercise a lot of caution since buying a house involves many issues and legalities that one should take care of.

Please find steps mentioned below which you need to keep in mind before buying a house in Bengaluru:

Project Selection

Verify credibility and credentials of builder, construction quality, apartment facilities and prices offered by similar apartment in your chosen area. Make a note to check about zoning clearance, parking space, water supply and litigation display board if any.

Title Clearance of Land  

After identification of the project and the builder, ensure title clearance of land. Projects are left in an incomplete stage mostly due to litigations arising on the account of title issues. After paying a token advance to builder, demand for the master file that’s consists of all land documents and then independently get the `Title Search Report’ (TSR) done. You can also get a detailed encumbrance certificate (EC) from the sub registrar office (SRO).

Approval of Building Plan  

BDA needs to approve all layout plans in general and all apartment projects building plans. BDA approval is mandatory even if the project is in Bengaluru outskirts ad approval by CMC or panchayat is not enough. 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) and build extra flats without approvals. It’s prudent to check the copy of the approved plan, A khata at the BDA office, as many fabricated plans are in the market.

Construction License

BMPBDA needs to issue a proper license to the builders for constructing the property. Check for deviation violation by matching the original plan approval with the floor plan approval of the apartment. There have been instances where the approved plan shows the apartment on the first floor, whereas it is actually constructed on the second floor, which is unauthorized.

Commencement Certificate

Verify if the builder has obtained proper CC from the BBMP.

Government Clearances

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

Builder Loans  

Find out whether 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. Also ensure that such mortgage transactions are registered and reflected in the encumbrance certificate (Form 15). Otherwise, there is a possibility of the builder getting multiple funding from banks which can take possession of the flats.

Regular Visits

Purchaser should visit the project site periodically to ensure that the construction is as per plan, time schedule based on the agreement, and quality fittings & fixtures are used. The purchaser should insist and ensure that the builder provides a copy of the CC issued by the BBMP. Occupancy Certificate (OC): The builder has to obtain OC from the BBMP within three months of completion of the project obtainment of completion certificate. Buildings without OC are not entitled to power and water connections.

Builder Indemnity  

Since the project takes 24 months to 48 months for completion, an “indemnity bond” and “letter of undertaking and affidavit” should be taken from the builder confirming that construction will be as per the approved plan and the completion certificate will be obtained within 3 months of the completion of the project.

Execution of MOE by land owner

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.

Legal Documentation

Be cautious while executing the agreement with the builder. Read and understand the implications of conditions in the agreements since they are normally in favour of the builder with very little scope for legal recourse. It is prudent to have a legal consultant to vet the documents.

Pay the Right Price

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. Normally, the difference is around 15-20 %: an apartment with a super built up area of 2,000 sqft generally has a carpet area (actual usable area) of only 1600sqft.

Systematically Maintain all Records

Systematically maintain a “master file” consisting of all documents such as copies of receipts of instalments paid, title search report of the project flat, plan approval copy, agreement of sale and construction, commencement certificate, and the “Occupancy Certificate”.

Source: Times of India