A Due Diligence Guide to follow, when buying property in India.POST RERA.
As per the guidelines of RERA, the very reason for the establishment of the Act was lack of transparency in the Real Estate Industry. After, RERA the registration process itself will bring almost every proposed project in line. However, it is very important for the buyer to still know what to expect as many developers are giving different commitments to the RERA authorities and the buyer, still leaving a Gap for ambiguity and confusion.
Here is a crash course guide, on what documents to expect at what stage.
- A detailed brochure or offer document: Look out for details about Built up Area and Carpet Area. Some projects have carpet area a.k.a usable area which is upto 50% less then the built up area shown on promotional documents.
During the Purchase:
- Partnership deed/Company Registration & Company Resolution of the Developer.
- Sale/Purchase Deed of the Proposed land accompanied with 7/12 form ,Ownership Card of the proposed project in the Name of the Developer.
- Title Deed accompanied with Form No. 6 and 8/A with Clear indications of no arbitration possibilities from a registered Legal Advisor for the Proposed project.
- Agreement of Sale, which includes but not limited to important details about Project RERA Registration number, date of completion, proposed amenities etc.
- Plan Pass Documents attached with approved and stamped plans from local authorities incharge of development and appointed architect.
- Environment Clearance Certificate.
- Encumbrance Certificate attached with Form 15 or 16.
- Non Agricultural conversion certificate attached with registered attorneys report which should mention no liabilities in outstanding fees or charges.
- Zoning Certificate from appropriate department of zone development.
- Part Plan of proposed project on T.P or D.P.
- Amendment Letter a.k.a Supplementary Agreement: This document is often ignored but is very important, whenever there are changes in the project from the original proposal, legally it should be amended and informed to the buyer and It is almost inevitable that changes will occur no matter who the developer is so it is also important for the buyer to understand and support unless the change is unreasonable.
Post Completion & Before Handover:
- Building Use Certificate: This is a certificate from the regulating authorities who gave building construction permission, mentioning the construction is done as per the approved plan, it can be risky to take handovers without BUC being issued for the proposed projects.
- NOC from the developer to begin interior works inside your property.
- Defects Liability Agreement of service oriented items which is covered under third party warranties like Air condition, electrical switches, etc. & Structural Safety and Service Guarantees from the developer.
- No Liability Certificates on your property from financing institutions if the project underwent external financing.
Providing, these documents will be inevitable after RERA. However, it is important for you to know what to ask, in the REAL ESTATE 2.0 , Due Diligence compliance will define how people look at the goodwill of your brand.
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Published On: December 28, 2017