Essential Questions to Ask Before Buying a Property in an Under-Construction Project

Buying a home is one of the most significant financial decisions one makes in life, which calls for extra caution and thorough research. It is important to ask the right questions to the developer and get clarity on various aspects before making a purchase in an under-construction project.

Ready-to-Move vs. Under-Construction Homes

Many homebuyers are often confused between opting for a ready-to-move-in property or an under-construction one. With both options available, buyers tend to be concerned about under-construction properties due to the uncertainty of completion timelines.

However, under-construction properties offer several advantages, such as lower prices compared to ready-to-move-in homes, flexible customization options like floor choices, vastu alignment, and flooring preferences. Despite some drawbacks, under-construction properties remain attractive due to these benefits.

Safety Net of RERA Compliance

Although there is some level of risk in purchasing under-construction properties, experts believe that due diligence can minimize this risk. The Real Estate (Regulation and Development) Act (RERA) has made the task easier for buyers by identifying reliable developers and projects. This regulation has significantly boosted the confidence of buyers in real estate investments, as developers are required to register their projects with the respective state RERA authorities.

Transparency Through RERA Websites

State RERA websites provide detailed information about various projects, including the current construction stage, approvals obtained, and pending permits. Buyers can also verify if any penalties have been imposed on developers for non-compliance, ensuring protection against project delays or substandard construction.

Key Questions to Ask the Developer:

1. Is the Project in a Rapidly Developing Location?

It is crucial to inspect the neighborhood, floor plan, and surrounding areas of the project. For NRI buyers unable to visit in person, appointing a trusted individual for site visits is advisable. Additionally, researching the project's proximity to essential facilities like schools, hospitals, and markets can provide a better understanding of its value.

2. What is the Actual Cost?

Purchasing property involves more than just the price of the home. Hidden charges such as development fees, GST, parking charges, and government fees should be clarified with the developer to get a true picture of the total cost.

3. How is the Quality of Construction?

Visiting the project site during construction is essential to assess the quality of materials being used. Inquire about the materials used from foundation to fittings, and ensure everything is up to standard.

4. Will the Possession be on Time?

Before committing to a purchase, ask the developer about the expected possession date and ensure it is guaranteed in writing. The RERA Act mandates developers to adhere to promised timelines, providing buyers with legal backing in case of delays.

5. What is the Carpet Area?

As per RERA regulations, property prices should be based on the carpet area, not the built-up area. Make sure the developer follows this rule before finalizing the deal.

6. Are Legal Documents Available?

Verify the availability of essential legal documents like the Title Deed, Loan Certificate, Property Tax Receipts, Completion Certificate (CC), and RERA registration number to avoid future legal complications.

7. What Amenities Will Be Provided?

Ensure that promised amenities such as fire alarms, waste management systems, parking, lifts, and power backup are included in the final project delivery. A site visit can help confirm the availability of these features.

8. How Has the Property Appreciated Over Time?

Understanding the appreciation rate of the property and the surrounding area can provide insights into future returns. Ask the developer about recent trends in property value.

9. What Percentage of Homes Have Been Sold?

Although developers may inflate numbers, it is vital to ask about the sales progress in the project. A slow sales rate could indicate underlying issues, which should be investigated further.

10. Are There Plans to Install Billboards or Mobile Towers?

Be aware that developers often lease the roof space for mobile towers or billboards, which can impact the value of top-floor apartments. It is important to review the developer’s past projects to understand their practices.

Important Facts and Figures

Price Advantage:

Under-construction properties are priced lower than ready-to-move-in homes.

Customization Options:

Buyers can choose the floor, vastu direction, flooring, and more.

RERA Compliance:

Protects buyers from delays and ensures construction quality.

Possession:

Ensure possession date is confirmed in writing as per RERA guidelines.

Carpet Area Pricing:

Property prices should be calculated based on carpet area, not built-up area.