Points to Remember Before Buying Under-Construction Properties

Buying a property also requires a long financial obligation and involves lifetime savings as well and if you have decided to go for a property that is under construction then it is time to think about the risks involved in the process and to take a wise decision.

Let us take some of the hazards involved in the under-construction property:

• In under-construction property chances of builder violating the building plan are there.
• The builder may also build illegitimate floors due to which the BBMP may not provide Occupancy Certificate (OC).
• The buyer should make sure that the builder has got all approvals from the BBMP and Akrama-Sakrama.
• Builders usually collect 90 per cent of the property cost before the Sale Deed registration and completion of amenities, car parking, etc.
• Most of the builder facility for Sewage Treatment Plant (STP) that is compulsory as per KSPCB from 2010 for all the new apartments with more than 50 flats and more than 20,000 sq. ft.
• Builders show negligence in the quality of construction and it would be too late if you have already paid for it.
• Completion of construction period would be around 18 to 24 months and within this period many changes could happen that the buyers may unnoticed.
• In under-construction property a buyer has pay an additional amount of Rs.6 lakh to Rs.8 lakh as pre-EMI to the bank.
• Agreements are commonly in builders favor in under-construction property.
• Also the fine on builders for delay in completion of project is less compared to the pre-EMI interest which a buyer will pay.
• As you would have already paid 90 per cent of the property cost before the sale agreement, so it is buyers responsible to keep their eyes and ears wide open to know what is happening during the construction period and how well the builder has kept his promise.
• Since it is under-construction property and due to some flaw in the construction or builder if you think to cancel your booking, it is a loss for you as you would have paid 90 per cent of the property cost and you will be paid around 80 per cent of the paid amount which you may get in 3-6 months.
• In under-construction property, clear detail about carpet area isnot given; hence sometime the buyer may get less carpet area than what has been promised.
• Most of the time, builder would have not got NOC from BESCOM, BWSSB, BBMP,BDA, KSPCB, for which the buyer will not get occupancy certificate.

There are many other risks that are involved in the under-construction property for which the buyers has to face the consequences.

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