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Important Things to Remember Before Buying a Home

Investing in a new home or apartment is a monumental decision, likely nurtured from a young age. The years of saving and planning cannot be overlooked when you reach the pivotal moment of making your final choice.

Therefore, it's crucial to consider all potential factors before taking the leap and selecting. Purchasing a house may also entail acquiring a substantial loan, followed by monthly installments drawn from your income, necessitating extra caution.

While location, possession date, and price are among the key factors to contemplate when selecting a new flat or house, additional parameters warrant consideration.

9 Important Things to Remember Before Buying Flats

1. Property Price

The initial step in choosing a house or flat is to establish a budget. Having a predetermined budget simplifies the process of shortlisting properties, as it provides clarity on the amount you are willing to invest. To ensure the quoted price for the property is fair, compare it with similar ones in the vicinity offered by different builders. Various sources, such as online portal listings, local brokers, or newspaper advertisements, can provide comparative insights into the property prices in the desired area.

2. Flat's Carpet Area

Typically, the listed area of a property, known as the super built-up area, encompasses the entire space, including shafts, elevator space, stairs, wall thickness, and other components. Conversely, the carpet area represents the actual space enclosed by the walls within the flat. This area can be around 30 percent less than the built-up area, which is the basis for calculating the property's price. In situations where a floor is shared between two owners, the cost of common spaces is distributed between the two parties.

3. Land Record

The land on which your flat stands holds significant importance. It is imperative to research the soil quality and topography of the land where the house is erected. The plot should be free of any outstanding dues and properly registered. Before purchasing a house, thorough verification and scrutiny of the title deed are essential. The deed provides comprehensive information on rights, ownership, and obligations associated with the property.

4. Legal Check of Property

Confirm that the property is legally authorized for construction on its current plot. The developer must possess approvals and NOCs from area development authorities, water supply and sewage boards, electricity boards, and the Municipal Corporation. In the case of obtaining a home loan, the respective bank will conduct a validation of your property documents before approving the loan.

5. Apartment Possession

The trend of delayed possession of flats has become prevalent due to setbacks in both commercial and residential projects. As a buyer, it is crucial to have a well-defined estimate of the possession timeline. While developers typically request a six-month grace period, there should be a valid and transparent explanation for any such delays.

6. Financing Banks

Be aware of the banks that are willing or unwilling to finance specific builders. Due to a tarnished reputation, some banks refrain from providing loans to certain builders. Therefore, it is essential to verify with the banks that are willing to fund the project you intend to invest in.

7. Builder-Buyer Agreement

Upon selecting a flat or house, you can secure it by providing a token amount, resulting in the issuance of an allotment letter. Subsequently, a tripartite agreement is executed among the buyer, the bank, and the builder for the remaining amount. It is imperative to thoroughly read and comprehend this agreement before signing. All clauses should be clearly understood, and any uncertainties should be addressed at this stage.

8. Location of the Flat

It is crucial not to overlook the importance of surveying the area where you will ultimately reside. Analyzing amenities, physical infrastructure, and accessibility to essential places is vital. Considering these factors ensures a peaceful living experience in the house. It is essential for the flat to be located in a safe and secure area, providing a sense of security for families residing in it.

9. Hidden and Additional Charges

Ensure a thorough reading of all document clauses, with a specific focus on understanding penalty clauses. In the event of a delay beyond the grace period, the builder is obligated to pay a monthly penalty. Additionally, consider ancillary expenses like GST, stamp duty, home loan processing fees, registration charges, and other associated costs. Keep these factors in mind during the purchasing process.

Buying a house is one of the biggest steps in your life, however you must remember each of these points before you seal the deal.


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