How to Choose the Right Builder When Buying an Apartment or Property?

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The real estate sector is hardly regulated in India. The number of builders that you have in India is almost countless. There have been instances when projects of builders are either stuck in a litigation or the project is incomplete and in some cases it is even abandoned.

How to Choose the Right Builder When Buying an Apartment or Property?
Investors have lost a lot of money in real estate, because of the above problems.

It's therefore extremely important that you choose the right builder, because it is not like shopping for groceries. You could loose your life savings in chasing the wrong builder.

Here are a few things you should keep in mind before choosing the right builder.

1) Track Record of Projects Executed

Do some preliminary enquiry about the builder. Visit some of the projects he has completed and talk to residents there. Just see if he has delivered what he has promised. Some builders promise a lot and are not able to meet expectations. In some cases they promise a beautiful landscape but just abandon the place. Make sure you talk to residents or the secretary of the association where the project has been completed.

2) Accredited Builder

As mentioned earlier there is a need for a regulator for the sector. In the absence of a regulator there seems to be no way to ensure that a builder is registered. The best way to is to select a builder is to look for one who has accreditation from Confederation of Real Estate Developers' Associations of India (CREDAI)

3) Proper Approvals from the Sanctioning Authority

Do check if the property is approved from all the relevant authorities. For example, in Bengaluru, the BBMP grants approval. If the builder does not have BBMP approval there's no way he can construct. Talk to various people in the know of the approvals needed for the purpose of buying the property. Apart from this there are a number of other things that you must check with the builder, including whether he would give you an occupancy certificate.

4) Comparison of Prices

Make sure that you compare the property prices in the area once you have finalised on the builder. This maybe to ensure that you are not charged relatively higher prices then what is prevailing in the area.

5) Banks that have Approved the Project for Home Loans

Also ask the builder about the banks that have approved the project. If many reputed government banks have approved the project, the property papers could be clear. But remember, that there is no guarantee of the same. Do not rely on the bank and seek the legal opinion of a lawyer before you venture into buying a place.

Read more about: real estate
Story first published: Saturday, January 24, 2015, 9:42 [IST]
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