Your SlideShare is downloading. ×
Process to check for legalities, costs, penalty clauses, and financing of a real estate project in india
Process to check for legalities, costs, penalty clauses, and financing of a real estate project in india
Process to check for legalities, costs, penalty clauses, and financing of a real estate project in india
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Process to check for legalities, costs, penalty clauses, and financing of a real estate project in india

718

Published on

As a normal buyer, we pay attention to smallest of details when purchasing a smart phone, laptop, car, and many other commodities. For many buyers, buying a home is a lifelong commitment wherein one …

As a normal buyer, we pay attention to smallest of details when purchasing a smart phone, laptop, car, and many other commodities. For many buyers, buying a home is a lifelong commitment wherein one has to pay EMIs for several years. Therefore, conducting your own due-diligence should be paramount before making a final purchase for Property in India.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
718
On Slideshare
0
From Embeds
0
Number of Embeds
15
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. How to check for legalities, cost, penalty clauses, and financing of a real estate project in India As a normal buyer, we pay attention to smallest of details when purchasing a smart phone, laptop, car, and many other commodities. For many buyers, buying a home is a lifelong commitment wherein one has to pay EMIs for several years. Therefore, conducting your own due-diligence should be paramount before making a final purchase for Property in India. Legalities of the project:      Intimation of disapproval (IOD): Check if the builder has received the IOD from relevant authorities. IOD lists out the conditions based on which the building should be constructed. It is usually valid for one year and has to be revalidated thereafter. Commencement certificate (CC): A CC is issued by the local authorities, which gives the license to the builder to begin construction only after all terms and conditions have been satisfied. Check if the builder has received the CC from relevant authorities. Land title verification is crucial in a sense that land should be free of litigation and any kind of associated debt. Check for approved drawings for an under construction project, functional water connection, electricity connection, and occupation certificate for a completed project. Encumbrances: Check if the property to be bought is mortgaged with the lender (such as bank, or housing finance companies). If that is the case, ask for a NOC (no objection certificate) from the lender or relevant bodies. Verification for the cost of project:    Stamp duty verification: Check if the rates quoted by builder are on the super built up area or carpet area. Registration Fee: Check if the rates quoted by builder are on super built up area or carpet area. Check for following cost with the builder o Base Selling Price (BSP) o PLC (Preferential Location Charges) o Infrastructure development cost (IDC), External development charges (EDC) o Car parking charges, Society and club membership, Electricity and water connection charges, Power Backup charges, Lease Rent one time, Fire Fighting Charges (FFC) o Interest Free Maintenance Security (IFMS): IFMS is paid only at the time of possession o Monthly maintenance charges (applicable only after the project has been delivered) Note: Include all charges associated with the project in the sale agreement. Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page
  • 2. How to check for legalities, cost, penalty clauses, and financing of a real estate project in India Penalties to the builder: Ask what would be the penalties to the builder in case project is delayed or there are unexpected deviations in the structure of the house:       Ask for delivery date and what are the penalties if the project is delayed (include them in the sale agreement with the builder). What would be the compensation if there are unexpected changes in the project design (include them in the sale agreement with the builder) Ratio of carpet area to super area (include them in the sale agreement with the builder) Earnest money: If the project is cancelled or the developer backs due to some financial difficulty, find out how much of your earnest money will be refunded. Also check whether you will be entitled to any interest payment on the money that you have paid to the developer. Escalation cost: Confirm that the cost of an apartment is escalation free. This ensures that any increase in the cost of raw materials does not impact you and the costs are absorbed by the developer. Completion certificate: When would that is offered. It should be included in the agreement. Insist on the inclusion of a clause that you will be given the completion certificate when the flat is handed over to you. Financing of the project:   Check which banks have approved the project for financing and talk to them. Check for the loan sanctioning process (including the interest rate, tenure, processing fee, prepayment penalties, and type of loan). Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page
  • 3. How to check for legalities, cost, penalty clauses, and financing of a real estate project in India About NirrtiGo NirrtiGo is owned and founded by Green Realtech Projects Pvt. Ltd. NirrtiGo is an online real estate platform to find, discuss, review, rate, and track real estate & property in India. Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page

×