In order not to walk into the trap of some nefarious builders who collect full cost of the property upfront on the pretext of pre-launch sales of the project and while away their time spending the hard earned money of buyers on foreign shores and lead luxurious life, here are three golden rules for the prospective buyers to follow before buying any property. The precautions, though minor, go a long way to save the buyers from nefarious buyers.
For the past several years, the realty sector is facing challenges after challenge like demonetization, imposing of the GST, Covid-19 and so on. Many developers have been facing cash crunch. In spite of it, some of them are working hard to overcome the arduous challenges. There is no doubt about it. There is no problem with such developers.
The million-dollar question is: How to detect the unscrupulous builders? The Centre introduced the RERA Act understanding the risk of the buyers. Accordingly, the developers are prohibited from siphoning off the amount, collected from buyers for one project, to another project. Moreover, 70 per cent of the proceeds of the sale of the properties should be utilized for the purpose of the construction alone.
The developers would have no problem if he or she is able to sell the properties. The developers encounter problems when the sales are dull. How can the project progress if the sale of properties is so poor? In case of delay in the execution of the project, the buyers will get compensation at any cost. Is there any point in making rounds to courts giving every penny that the buyer has to the developer? How agnoising it would be! The buyers should act with tact in the absence of the law promising no remedy to it. It will be very clear whether one should buy property in a project or not. The following is the way forward in such cases:
Before zeroing in on any flat in a project, one should enquire with the sales executive about the sales record. If the sales are good, it is clear that the project is facing no shortage of funds. Therefore, the question of the project getting stalled does not arise. Further, the buyers should enquire about how the builder conducts himself or herself towards the buyers. In case, the builder does not value the buyers, it is always advisable to jettison the builder.
* In case of doubt whether to buy a property in a new project in your choicest place, it is better to speak with the builder directly to find out how the builder mobilizes funds for the project. In fact, banks advance term loans to projects.
* In case the project of your choice progressed up to a certain level, the buyers should ask the realtors to send photos indicating progress of the property or any other web link. Upon careful examination, one can easily find out the progress in the project if it is not facing any cash crunch.
* Besides these golden rules, observing some other aspects also enables the prospective buyers to zero in on a good project without depending on the glib-tongued sales talk of the sales representatives.
