The Government of India launched The Real Estate (Regulation and Development) Act (RERA) on May 1st 2017, to protect the interest of home buyers and increase investments in the real estate sector. Under RERA, all builders have to register their projects with a real estate regulator. RERA has set some rules which should be followed by builders, otherwise, strict action will be taken against them.
Before buying any under-construction property, make sure it is RERA registered. The main advantage of buying a RERA registered property is, it helps you to know all the details about the project and the developer.
Strict action will be taken against the developer, if he does not deliver your flat on time and he is also liable to pay 2% interest above the SBI lending rate.
2. Take a look at the buyers track record
Before investing your hard earned money to buy a property, it is very important to check a builders track record. Many of the builders are going bankrupt these days.
Check the builder’s website to get an idea of how long he has been in the construction business. Also go through the list of his completed and ongoing projects.
Don't just fall for attractive advertisements and schemes. Instead, take a look at reports and articles under the builder's name. This will help you find out, if he is involved in any legal or financial issues.
3. Select a bank approved project
Nowadays, banks do a lot of due diligence, before financing any projects of builders. Banks check all the necessary documents of the builders. So, if the project is financed by leading banks, it is considered to be safe. Many banks are financing RERA approved projects.
4. Avail a home loan and buy your property
Availing a home loan gives you safety, while buying a property. Before sanctioning your home loan, the bank does strict document verification called due diligence. Even though the bank checks all the property documents, it is advisable to examine the documents by yourself, before making your purchase.