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Check-list for buying a flat /appartment in Mangalore- India

Check-list for buying a flat


This check list is based on our own experience of buying flat in KARNATAKA.

Sr.no 1

Check List Visit few previously completed projects constructed by the builder and talk to the flat owners who has occupied the flat. See for your self the quality of t the construction. Also find out whether they finished the work in time. Verify original land documents, construction plan and tax paid receipts for at-least last 15 years. Consult a lawyer. It is necessary to get them verified.

Also know the pitfalls If builder takes you to meet some one, he is likely to say what builder wants to hear.

This requires the help of a good lawyer. Find a lawyer who is not a friend / well known to the builder. Otherwise lawyer is likely say what builder wants him to say. If you purchase a flat when it is in the initial stages of From the uncertain delivery point of view it is better construction, than you can ask for modifications in the to buy a flat which is ready for occupation and likely plan like removal particular wall separating drawing room to get occupancy certificate. This needs to be and dinning room, shift the entrance of any room / checked with Municipal authority. bathroom to another place, have separate pooja room, store room, etc. You can not alter the position of Pillars There should be a separate agreement with price and Beam. for the alterations of wall and additional work to be carried out. If the price is not finalised, you are likely to get exaggerated bill for this work. While buying a flat, you have to sign and get following documents from the developer/builder: Some builders in India do not provide draft agreement before receiving the advance for the flat. It is better to get the written opinion from trustworthy lawyer. Meet few 1. A registered agreement for the sale of non-agriculture lawyers and try to assess trustworthiness. Can the buyer Land.:This is for the undivided share of Land. Buyer succeed in changing any clause in the agreement? must ask the details for the calculation of this. It should be in terms of Sq.ft or Sq.m. But in Karnataka undivided Verify the figures like land area, total super built-up area share of Land is expressed as percentage of total land. It remains same in documents like Approved Plan, Building is better if it is expressed in terms of Sq.ft as well as licence, Agreement for undivided share in Land, percentage. This document is signed by land owners and Construction agreement and DoD. Verify the Calculation the buyer. It describes the property (Land in terms of details for undivided share of land for each flats. Builders cents) and confirms the undivided share land in terms of may retain some undivided share of land to build percentage. Land area in terms of Sq.m is found in additional illegal flats over the terrace. approved PLAN. Normally, builders occupy illegally the common areas 2. An agreement for the construction of the multithereby denying the access to other legitimate flat apartment building. This includes the Price of the flat and owners. Therefore, we must understand what are the car park and the advance payment made while booking common areas. the flat. Payment schedule for the balance amount is mentioned. Other terms & condition of Sale and Remember, No agreement can contradict (go against) specification of the apartment is written in this agreement. the Rules & Laws of the Land. Therefore, ownership of Terrace can not be claimed by the developer/ builder 3. Other Agreements like, Amenities Agreement, Car- even if it is written in the agreement. Park Agreement, Common Area Allotment Agreement should also be entered. (to be described in DoD).

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Check-list for buying a flat /appartment in Mangalore- India

4. Separate agreement for additions/deletions ie. Alterations with prices should be entered.(to be described in DoD). 5. Registered Deed of Declaration. Power of Attorney document if you sign should be for specific purpose for restricted period. It can not be for General Purpose. 5 Approach 2 to 3 banks at-least with the details and ask Banks who offer HOME LOAN should declare their for the terms and conditions for getting loan. Find out method of evaluation of the builder for the correctness of whether they have scrutinized / evaluated the legal papers the documents pertaining to land and other documents pertaining to this building project. Get a copy of the pertaining to the construction activities from proper Bank's legal opinion. authorities in the city. Just because the BANKS are ready to sanction loan, do not assume that they have verified all the legally correctness of the documents. But discuss with them to verify that they have obtained all the statutory clearances. Banks are flooded with funds to lend the money to flat buyers. Therefore they are more eager to lend, than the builder to sell the flat. Therefore, Bank may not be interested in detailed verification. Hence from buyers point of view banks verification may not be reliable. 6 Insist that the quality, brand or make of the materials Preserve the 2 copies of the broacher. What ever is (cement, Wood, Plumbing, Bathroom fittings, Electrical written in it needs to be followed by the builder. fittings, paint etc,)being used is included in the agreement. Otherwise, builder is violating the unfair trade practice Demand good & superior quality plumbing materials that laws. This is punishable as per the old judgments. is concealed in the walls. Demand Schematic drawing for plumbing -water & drainage lines for the building & your flat. Ask for Schematic drawing for electric wiring for the building and your flat. 7 Demand in writing Completion / Occupancy certificate and transfer of Khata, Water bill and Electricity bill to your name before handing over the flat. You must insist to include this in the agreement. It is the obligation on the part of the builder to secure a sanctioned plan and construct a building. It carries with it an implied obligation to comply with the requirements of municipal and building laws and secure the mandatory permissions / certificates.

Ensure that the electricity and water tariff for residential Ensure the electrical installations in the building is audited purpose is applicable to you. Commercial tariff may be by the relevant authorities for your city. application during the construction period. Draw attention of the builder to Karnataka Ownership flats (Regulation, Sale, Management and Transfer) Rules-1975. Remind through letters that the builder can not deviate from the approved/sanctioned original plan. Normally they build extra illegal flats on the terrace and make enormous illegal profit out of them. Ensure that the calculation of Undivided Share of Land is correct Builder has to provide notarized copies of the following : (1) Building License. (2) Approved/Sanctioned drawing PLAN. (3) Encumbrance Certificate, (3) Parent Documents of Land. (4) Correspondence with Authorities, (5) Khata,(original document) (6) Deed of Declaration -duly registered.(original document) Additional floors over the approved top floor can weaken the building structure, if it is not designed for additional load.

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Check-list for buying a flat /appartment in Mangalore- India

additional load.

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Ensure that the builder takes care of maintenance till association is formed.

This is the condition in Karnataka Ownership flats (Regulation, Sale, Management and Transfer) Rules1975.

Insist on election and you should take interest in the association. Take responsible post, otherwise builder will A Developer shall, pay all outgoings (including ground ensure, his yes men are in position of power in the rent, municipal and other local taxes, taxes on income, association. water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any), In every project builder's friends and business associates until he transfers the property to the persons taking over (who have vested interest in the real estate business of the flats, or to the organization of any such persons. the builder) buy flats. Such people are elevated to the post of President / Secretory / Treasurer. Association formation is the responsibility of the developer/builder. This should happen with in 4 months of obtaining completion certificate. Do not agree to pay electricity bills, water bills and maintenance charges before the association is formed by the builder and all parent documents municipal / electricity boards/ water boards / elevator license/ generator papers / completion /occupancy certificate are handed over to the association. Deed of Declaration has to include the bye-laws for the association. 11 It was in April 2008 that the Bombay High Court ruled that car parking did not fall under the floor space index (FSI)/ FAR granted to the builder, and therefore could not be sold. builders are obliged to provide parking space for all the flat owners in the buildings and cannot charge buyers for the same. Agreement should have reference of car park drawing and car-park number alloted to you. Ensure Car-park drawings (with alloted car-parked marked for your use) are to a scale and no pillars are omitted, it should be singed & stamped by the builder. And this drawing should also be part of the agreement. Car-park can not be alloted on setback area around the building. Car park should have adequate space for right/left turn to enter the alloted car-park area.

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Do not go by the name of the company that advertised There are laws to safeguard the interest of consumers, for the flats. They may be only marketing the project and but implementation of Law does not exist. Judiciary is some different builder may be doing the construction. very slow as frequent adjournment helps the wrong doors. Builder/Developers take full advantage of this. Find out who is the builder and the engineer taking care of construction. Unfortunately Municipal authorities have no system of blacklisting the Builders who habitually & repeatedly flout Laws in every building projects. And last but not the least, do not pay the entire amount for the flat before you take over possession of the flat. Keep at least 15% of the total money with you and pay only during handing over of keys. Demand Completion / Occupancy certificate and Door number when Developer ask you to occupy the flat. Builder does not give key till you have paid full amount. In many instances builder demands additional amount of Rs 100 per sq. ft in the excuse of prices escalation. Flat buyers have no time to fight out this type of frauds and are in a hurry to occupy the flat. With out Door number, Municipal authority demand enhance (double the actual amount) property tax as penalty for not complying to the Law. Hence, you have to pay every year more property tax. A reward for your sincerity.
Excerpts from SC judgment SC Judgment 1782 of 2009 Car-Park at APEKSHA Usefull links SC Judgment on car park SC Judgment 3302 of 2005 Reality Check News Reports HC judgment on carpark SC Judgment 12984 of 1996 Summary of Problems News Reports about

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HOME Car park can not be sold. Excerpts from KAOActs Judgment of

Check List for buyers of new flat Car Park - Types Overview of Problems at APEKSHA Tamperproof

Deed of Declaration Terrace Construction Deficiency at APEKSHA TIME LINE

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Judgment of DKD-CDRForum About us Tamperproof MCC documents. Diwali Celebration 2010

Check-list for buying a flat /appartment in Mangalore- India


TIME LINE Diwali Celebration 2009 Usefull links New year celebration on 31-12-2008 News Reports involving builders Diwali Celebration 2009 News Reports about Akrama Sakrama List of Members

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