- Banking
 - Cards
 - General
 - Insurance
 - Lifestyle
 - Loans
 - NRI
 - Real Estate
 - Taxation
 - Travel

A checklist before you buy property

Larissa Fernand

Buying land? It can turn out to be quite problematic if you don't tread carefully. For starters, make sure that the title is clear or else claims on your land will result in years of litigation. The moment the land is yours, fence the entire area to prevent encroachment. Simultaneously arrange for security to prevent any illegal occupation.

Once you start developing your property, you may be faced with a whole new range of issues. Getting hold of basic amenities like plumbing, water and electricity may prove problematic. Of course, if you have purchased agricultural land, the government may not permit any construction on it.

In fact, extreme care should be taken when buying agricultural land since the terminology is different and so are the local laws. For example, one person may own the land while another the crops. This will cause a problem regarding possession of land. Always ask for a copy of the plan approval by the Town and Country Planning Board or any other similar authority before buying vacant land.

That brings us to an apartment under construction. This one will be cheaper than an out-right purchase of one ready for occupation. But do check for the commencement certificate for full work and make sure that all the titles are clear. Construction should have commenced with at least two slabs completed. Make sure that there is sufficient work going on at the site.

As far as a readymade apartment is concerned, you have to check the finish of the flat: flooring, painting, amenities, switches, windows, doors, permanent fixtures, plumbing and common area finishes. If you take a housing loan, then the actual repayment of the loan commences after the housing finance company makes the final disbursement. Until the final disbursement is made from the housing finance company to the real estate developer, the consumer has to pay a pre-EMI rate of interest.

So if construction is delayed, then the final disbursement too is delayed and the buyer loses out by paying more pre-EMI. This problem will not arise in the case of a ready apartment where repayment starts immediately.

If nostalgia and sentiment are pushing you towards buying an old home characterized with its Gothic architecture, hold on. Chances are that the government might have categorised it as a heritage property.

Grade I constructions are those that have a historical value and no changes in construction are permitted on the structure. These are usually held by the government and not available to the general public. You might be eyeing a Grade II or III structure. Under these categories, repairs and modifications are permitted with the approval of the authorities. Limited interior changes and repairs are permitted under Grade II while alterations (including design and reconstruction) are permitted under III though they have to match the original plan.

Tell us what you think of this information