Checklist - Buying a Residential Apartment
(A)SUITABILITY OF LOCATIONS
1.Present and future road network (as per development plan)to connect markets/commercial centers, schools, hospitals and other localities of the city
2. Availability of educational institution, markets, convenience stores, medical facilities in the vicinity.
Proximity to existing railway station/metro stations/airport.
3. Availability of public transport (Bus, rickshaws/taxi, metro etc.)And connectivity to other areas.
4.Availability of NMT (Non motorized transport) and pedestrian facilities like footpaths/cycle/rickshaw tracks etc.
5. Existing and future planning of potable water supply, power supply, sewerage/drainage system.
6.Presence of high voltage electric line in the vicinity posing hazard
7.Presence of nala or water course in the vicinity potential health and flooding hazard
8.Noise pollution due to industrial activity or heavy traffic movement
9.Air pollution and ambient quality
Whether the area is low lying and prone to flooding
Is the area located in the flood plain of a river?
General security and law and order in the area
Presence of protected archaeological monuments in the vicinity restricting /development at site
Parks, green space and recreational facilities in the vicinity (Existing and planned)
Check land use as per master plan of the city
(B) VERIFICATION OF CREDIBILITY OF THE BUILDER / PROMOTER / DEVELOPER
Market Reputation ; Details of projects completed , quality, timely, delivering, area of operation , redressal of buyer’s complaints/ grievances
Experience in the Real Estate Sector
Organizational structure and management of the firm
Annual turnover and net worth
Time and cost overruns in completed projects
Post Completion track record ( Getting completion certificate, Rectification of defects, maintenance, arrangements for handing over)
Transparency in booking and allotment
Customer care set up
Terms of sale agreement – whether equitable or one sided
Property transfer and registration facility
Grading of Builder if any ( Given by a reliable grading agency)
(C ) PLANNING ASPECTS – Collect brochures of the projects in chosen localities / locality and check the following:
Layout plan of the project – check approach road / access to site, orientation of buildings, common facilities, open spaces, internal roads / parking etc.
Dimensioned plan of different types of apartments in the project- check the following from the plan
Whether the numbers and sizes of rooms meet the requirement.
General arrangement & layout of room’s accessibility and circulation.
Size and arrangement of kitchens and toilets.
Availability of built in space for cupboards modular kitchen and household appliances.
Size and number of balconies.
Natural lighting and ventilation
Availability of space for washing machines and drying clothes.
Ceiling height ( preferable not less than 9’-6”
Access from common areas – Lifts, Staircase, lobbies.
No. Of apartments served by one lift and capacity. Also the existence of service lifts in the apartment block.
Type of structure , walls, flooring, doors and windows, wall/ ceiling finishes, kitchen , sanitary / water supply fittings / fixtures (preferably with brand names)
Provision of services such as gas pipe, cable TV, access control. Broadband internet, arrangements if any for renewable energy source ( solar panels ) storm water recharge structures (water harvesting)
Areas- Built up area, plinth area, carpet area super built or saleable area with detailed breakup for each type of apartment.
Common areas and Amenities – Details of common areas and amenities ego community centre, clubs, swimming pool, Gymnasium, jogging track, parking ( including parking for visitors)
Basis of costing Based on carpet area / Built – up area
Availability of backup power supply
Compliance with codal requirements relating to earthquake resistant design etc.
Fire fighting and other safety or emergency arrangements.
(E) FINANCIAL ASPECTS
Rate per unit of built area / super built area / carpet area
Availability of carpet area per unit of saleable area Approval of the project by Financial institutions ( for sanction of housing loans)
Additional costs if any for items like parking, club membership deposit, Eternal / Internal development charges, service connection charges, registration costs, service tax etc.
Check the following financial aspects in the agreement
Cost as calculated ( Rate ,area)
Payment terms (instalments) - whether in proportion of the progress.
Interest on delayed payments –whether it is as per market rate
Penalty for delayed possession – whether it is nominal or in relation to the actual Anticipated losses due to delayed possession
Provision for depositing instalments received from the purchasers in and Escrow Account for the project.NOC from bank if the project is mortgaged with a bank.
(F)STATUTORY & LEGAL ASPECTS
Title search /Investigation of Title - Verification of absolute Ownership of a property ( land or building) free from liens, mortgages, encumbrances purchases, legal conflict ( Title search is carried out by verification of registered deeds and revenue records maintained in the offices of Revenue / Registration authorities for ascertaining the chain of ownership. Title search is usually Done through a legal professional appointed by the purchaser or bank or financial institution providing financial support for the project or housing loans.
License of the project ( If required under the Regulations of the state )
Land use as per master plan.
(G)AVAILABILITY OF STATUTORY APPROVAL
Approval of Building Plans and layout by the municipal authorities / development authority ( valid IOD - information of disapproval )
Clearance by Civil Aviation authority ( if required)
Clearance by Archaeological Survey of India (if located in the vicinity of a protected monument)
Environmental clearance (if required)
Clearance of forest Department ( if required)
Commencement certificate issued by
Development Authority / Municipal corporation
Occupation certificate (after completion )
NOC from Fire Fighting authorities -Fire clearance
Exemption under Urban Land Ceiling Act (ULC )
(H)Verification of the terms of the sale agreement – Important Terms to be checked
Description of the project ( Land / Property )
Names of parties.
Identity of the apartment (Flat no. floor no. building no etc.)
Financial Provisions –As listed in the paragraphs 4.5
Provision for substitution of name of allottee
Provision for registration and conveyance after completion
Existence of one sided clauses in the agreement safeguarding the interest of only the seller and not the purchaser.
Existence of ‘No Sale ‘ Clause for a specific period
Stipulated period of completion
Conditions relating to force majeure.
Schedule of maintenance ( post completion) Plans and specification ( Ail details as mentioned under “Planning aspects”)
Has the Builder reserved the right to construct beyond originally approved plans? ( A clause unfavorable to the purchaser)
Has the builder reserved the right to modify or alter the plans and specifications? ( A clause unfavorable to the purchaser)
NOTE - For second or subsequent sale, it is important to verify the chain of previous agreements/sale – deeds and other documents relating to transfer of property under Transfer of Property Act including wills/gift deeds/Relinquishment deeds.(To be done through a legal professional)