With so many real estate projects coming up in Mumbai, the city has become a hub for investors and buyers. And the good thing is there are ample options for homebuyers as far as ready-to-move-in properties and under-construction properties are concerned.
Many buyers may be cautious about purchasing under-construction properties because there could be concerns on the delivery timelines, the accuracy of the construction design, etc. However, keeping the below pointers in mind, you can safely purchase an under-construction property:
Check if the Land has the Necessary Approvals
Some mandatory approvals for a residential property in Mumbai would include an environmental clearance, a document to show that the land is not agricultural, registration under Statesâ€™ RERA (Real Estate Regulatory Authority), etc.
Before you finalise a property, make sure that the builder has all the required legal permissions and documents in place. If you find anything missing, talk to the builder about it and try to get answers. It is also recommended to read through the builder-buyer agreement and get it verified by a legal expert.
Ideally, the terms of delivery, construction, layout, etc., should be mentioned in absolute and definite terms instead of vague and ambiguous terms. If anything seems fishy or if the documents are not in place yet, it may be advised to wait a while longer or look for another property in Mumbai that you can invest in.
Visit the Site to be Sure
Visiting a property under construction is crucial. Even if the construction is ongoing, you can have a look at the basic structure and layout. You can also visit the nearby locality and see if it offers all the essential amenities like schools, colleges, hospitals, etc.
Check the connectivity to other parts of the city, proximity to the metro or railway station as well as the airport. You can also conduct in-depth research online to find out about traffic congestion, the availability of power supply and water, and if the property has security arrangements.
Be Aware of Your Rights
According to the RERA mandate, a builder is required to update the layout of the plan, all the specifications as well as the sanctioned plans on the official MahaRERA website. These specifications and plans, once approved by the authority (RERA) will also have to be displayed on the site of the project.
If a builder wants to alter parts of the construction or any of the common areas on the sanctioned plan of the property, the written consent of two-thirds of all the allottees or home buyers is necessary. Without consent, the developer cannot proceed with any changes to the buildingâ€™s plan. In case home buyers are coerced or forced into submitting the consent, this action will be considered Void under Section 19 of the Indian Contract Act, 1872. Such a move can be challenged by the home buyer who can have the consent declared null and void under this Act.
Things to Check Before Buying an Under Construction Property from a New Realtor
The above points indicate how you should proceed when seeking out an under-construction property for purchase. However, here are some more ways in which you can safeguard your interests while purchasing an under-construction property from a new real-estate developer:
Carry out a legal check :
If you have found reputed real-estate developer whose under-construction property you want to purchase but are still skeptical, you may want to rope in a legal expert. Such a lawyer will help you understand all the legal terms involved when it comes to checking the government approvals, the projectâ€™s title deeds and approvals from the authorities as well. Even if there are no legal disputes on the under-construction property, a lawyerâ€™s perspective will assure you of the developerâ€™s authenticity.
Check the developerâ€™s credibility :
In case the real-estate developer of your preference does not have any past projects to check with, there are other ways to know their credibility. You can take a look at their project timelines and how close they are to the expectations. Good developers ensure that the expected timelines and the actual timelines sync as closely as possible. Similarly, you can also take a look at their quarterly and annual financials to know if they are financial equipped to complete the projects they have committed to.
Check for RERA compliance :
Checking for RERA compliance can be crucial if you are concerned about delayed timelines. Under the RERA, you can keep track of the guidelines given on the website to understand if the developer is successful at maintaining a transparent relationship with its buyers. And if you want to protect yourself against any issues with the under-construction property, RERA also facilitates accountability from the developers within 5 years of purchasing the house.
To Sum it Up
If you wish to buy a residential property in Mumbai that is under construction, one of the key points to note is to look for a real estate developer that is trustworthy and reliable, like Piramal Realty.
Piramal Realty is a renowned real estate developer with some stellar properties across Mumbai. With a reputable builder, owning a house can be a hassle-free process.
Disclaimer – This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.