The happiest moment during property purchase is when a buyer receives a letter from builder to receive possession of property. A buyer is so enthusiastic that he receives possession of property without going through the basic checklist. These days due to the slowdown in the real estate market, almost all the projects are getting delayed. I highlighted the reasons for delay in my post, Why under construction projects gets delayed?. A buyer is so frustrated over a delay that he accepts possession of property on as is where is basis and what is there is basis. This approach may land a buyer in ... Read More
Builder NOC – 11 Important Points to Check
Builder NOC is one of the must crucial document for direct transfer of under construction property. Normally, Builder NOC is a standard format by a builder. As i keep highlighting that there is no concept of standard format except for legal and govt issued forms/documents. As i promised in my previous post, Direct Transfer of Under Construction Property to dedicate a post on Builder NOC. This NOC is also referred as a Resale NOC. As i explained in my previous post that buyers should prefer tri-party agreement instead of bi-party agreement with the seller based on builder NOC. If the situation ... Read More
Direct Transfer of Under Construction Property
Transfer of Under Construction Property is one of the most complex topics in real estate. It is situational and there are no right or wrong answers. Transfer of Under Construction Property depends on multiple factors like Construction Status, Home Loan of a Seller, Builder or Landowner share etc. The buyer is in a dilemma on how to make payment and what is the right procedure to execute the deal. The situation is complex if the occupancy or completion certificate is issued, but the property is yet to be registered. Another confusion is who will bear the cost of VAT and Service Tax i.e. buyer ... Read More
Project Delay – What a Buyer Should Do?
Due to the slowdown in Real Estate Market, Project Delay is very common these days. Completing a project on time is a big achievement. I saw one of the builders in Pune advertising heavily that he completed one of the projects on time. Project delay has huge financial implication for the buyer both in terms of Home Loan Interest Outflow and Opportunity Loss. Opportunity loss is potential rent received/saved in case of let out/self-occupation of a property. On an average, a project delay may cost you Rs 25,000 per month. In my post, Why Under Construction Projects get Delayed? i highlighted the ... Read More
Buy Resale Under Construction Property
Resale Under Construction Property is most beneficial but least preferred option for a buyer. This is true for buyers who only want to buy Under Construction Property. Recently, one of my clients bought a property from leading builder of Mumbai. Price quoted by the builder was Rs 5999/- psf. Whereas Resale Under Construction Property in the same complex of same unit size was available for Rs 5350/- psf. Despite the direct monetary benefit of approx 9 lakh, my client decided against it. Honestly, i failed to understand the logic. As i keep highlighting that Rate card of a builder is always ... Read More
Property Search – Do it Yourself to Save Money
Property Search is one of the most painful exercise while finalizing a property. Its very tiring and mentally exhaustive if done properly. At the same time proper Property Search can help to save not few thousand but few lakh rupees. You will not believe that i saw 50+ properties before finalizing my dream home and saved approx 20% after thorough research. Many people outsource Property Search activity to 3rd party like Friends, Agents / Brokers or Online Search. I am not saying that we should not discuss, search or take opinion of others but decision should be ours. Property Search is 360 ... Read More