19 Things To Check Before You Buy A Property In KeralaPosted on July 23, 2019
In recent times, the number of investments in land properties is increasing rapidly. Often people like to invest in land areas as they are less insecure and chances of a better return are higher. Following this trend, residential projects are developing almost everywhere in Kerala. People are choosing apartments to live in as these apartments come with more amenities, increased security, and less maintenance responsibility. While it is very easy to buy an apartment, there are chances too of getting trapped and cheated by thugs.
- 1 Here are the Common Concerns You Should Consider
- 2 1. Approval and Licenses
- 3 2. Title Deed
- 4 3. Check Release and Encumbrance Certificate
- 5 4. Check Land Use
- 6 5. Details of Banks Funding the Project
- 7 6. Find the Entire Cost
- 8 7. Check the Builder
- 9 8. The Size of Property
- 10 9. Buy or Rent
- 11 10. The Right Program
- 12 11. Verify the Infrastructure Programs
- 13 12. Explore the Site
- 14 13. Register the Plot
- 15 14. Buy Agreement
- 16 15. Professional Services
- 17 16. Construction Review by an Expert
- 18 17. In the Case of Multiple Holders
- 19 18. Gaining of Taxation Process!
- 20 19. Measurement of the Land
Here are the Common Concerns You Should Consider
What are the documents to be verified before buying a flat?
You must check all the paperwork of builder including Commencement certificate, Approval certificate of the building and Environmental clearance. Ensure that the entire project has been approved by the local body and development corporation of the city. Also check the Title Act of the property to ensure that builder owns it fully. One can also go to a lawyer to gain the details of the act.
What are the things need to check before buying flat?
There are chances that the apartment is acquired on bank loan, in that case, you need to gain a release certificate from bank ensuring the loan repayment is done. You must check the property doesn’t comprise any legal dues, with the help of the Encumbrance Certificate. If the builder are funded by bank, you must get the details of the banks that agreed to finance the project, before you buy the property.Builders gives the super built-up area which usually comprises the common areas. Whereas the core area of the flat can be thirty percent lesser than the area mentioned. It is always advised to go for the core area, defined as the area enclosed by walls and you should first explore.
So when you take the first step in order to buy property in Kerala, you should have a list prepared of Documents to be checked before buying a flat from builder to get a legal and healthy deal.
1. Approval and Licenses
It is very vital to check the paperwork of builder including commencement certificate, approval certificate of the building and environmental clearance. Ensure that the entire project has been approved by the local body and development corporation of the city.
2. Title Deed
Get the details of the owner of the land. While choosing an apartment to buy in Kerala, check the title act of the property to ensure that builder owns it fully. One can also go to a lawyer to gain the details of the act. Also get the information about the land status and check if the builder owns the land or he just owns rights for development of apartment.
3. Check Release and Encumbrance Certificate
While going to buy an apartment for resale, there are chances that it is pledged to acquire a bank loan. In such cases, one will have to gain a release certificate from bank to ensure that the loan is repaid now. It is also vital to clarify that the property doesn’t comprise any legal dues, an Encumbrance Certificate ensures you about it.
4. Check Land Use
Get the information about land use zone defined in city plan related to property. One can easily find the plan at the local body office in the respective city. Ensure that the property comes with your desired land-use plan.
5. Details of Banks Funding the Project
When Kerala real estate developers don’t have enough money to build their projects, banks assist them by funding the project. Many builders are not eligible to get bank loans at all. So, before you buy the property get the details of banks which are agreed to finance the project.
6. Find the Entire Cost
Do not believe blindly on costs the real estate agent or broker explains you. Many times he just mentions the initial primary cost and no other factors like preferential location charges, internal and external development charges, service taxes, parking/club fees. Verify the final total cost of the apartment.
7. Check the Builder
The land property in question can be under legal disputes. So, it is advised that you go for a detailed verification of the manufacturer. You can verify its on-going or ready to occupy projects and even ask queries through various online forums.
8. The Size of Property
Builders advertise the property as a super built-up area. This comprises common areas as the lobby, staircases, and so on. The core area of the flat can be thirty percent lesser than the area mentioned. For an example, buy property in Kerala; a two-BHK 1,200 square feet apartment could be just 900-950 square feet. It is always advised to go for the core area, defined as the area enclosed by walls. If you are going to buy a residential property, it is suggested to first explore your need. You should verify the land amount that will be required to build your home. Soil quality and Topography are also the other major factors.
9. Buy or Rent
People go to buy property in Kerala assuming their rent can be used to pay EMIs. It’s completely wrong approach, one should not leverage much assuming that rental savings can be paid as EMI. The rental gain on residential apartments is generally very low.
10. The Right Program
There are different payment methods available in the market such as flexi payment plan, down payment plan, possession linked plan and construction linked plan. One must choose the payment method carefully as there would be certainly a cost for every convenience you get. As in subvention schemes, the cost is at least ten percent higher than the total charge under regular plans. Any delay in payment or problem with the builder in schemes can affect your property. There are guaranteed programs also under which the builder pays you rental money for a fixed time at the time of construction or a particular period after the possession of buying property in Kerala. In the first scheme, you gain payments from the builder during construction of the house, which helps him offset rent costs or a fraction of EMI. In the second scheme, mostly used for properties established outside the city, the builder offers rental money after giving possession of the property. Still, there is no certainty of following terms and conditions that make it less attractive.
11. Verify the Infrastructure Programs
Big attractions for real estate like nearby to established railway stations, airports or building in future in the area of the target property can increase the return while investing. One should also check that any hazardous or unsafe industry is not established in the same locality in which the property exists.
12. Explore the Site
The developed area shown in the brochure can be entirely different from real circumstances. So, go for a site visit prior buying the property. Explore the location, Interact with persons living in the neighborhood as they could have better information about an illegal activity or any litigation related to the desired property.
13. Register the Plot
After choosing a property, one should register it with the respective authority concerned to become land’s owner legally. By following this process, you will be able to gain the property’s rights. One should go for research about the record of the developer in form of total projects those are developed, project delays and market feedback. You should check the quality and sustainability of its completed projects in past. You should search for controversies which may create problems during the development of property. In this process, you can go through real estate forums.
14. Buy Agreement
You should thoroughly review this document to ensure that it contains all of the promises made. The only legal responsibility for what is in the purchase agreement is that you can hold a builder or promoter, not what is verbally promised. The contract should include all vital building project information such as specifications for the project, the accommodation, payment conditions, deadlines for completion and type and amount of punishment in case of default by any party. The contract should also include a provision for the transfer to society of the common spaces. Infact if you buy property in Kerala will gives you a great relief that every agreement is provided with detailed information!
15. Professional Services
Try to gain professional services even though online forums provide home listings and unprecedented access. If you don’t have any experience, it would be better for you to hire a professional agent.
16. Construction Review by an Expert
It is always advised to get services from an expert civil engineer to find the real condition of the building. It will provide you the details of construction quality, strength, and repair required and so on.
17. In the Case of Multiple Holders
One should gain a release certificate from each and every owner before buying the land. Otherwise, it can create trouble in form of legal issues. Getting a release certificate will help you to avoid unnecessary legal disputes.
18. Gaining of Taxation Process!
When the price is appreciated, consider capital benefits and the tax that can be incurred if you buy property in Kerala to sell it. Within 3 years if you sell the propety, short-term capital gains will be generated. If you will make long-term capital gains if you sell them after three years or more. Short-term profits are imposed following your tax burden, and long-term benefits are taxed to a maximum . You can avoid tax by purchasing land or building a house within two years, or investing in bonds for capital gains.
19. Measurement of the Land
It is always advised to precisely measure the area before getting the land registered. You should ensure that the taken measurements are accurate and precise. A recognized surveyor will help you in this process.
These are must check things while buying a property in Kerala. One can easily acquire a legally qualified and desired property following these tasks.
PVS Builders & Developers is one of the leading builders in Calicut that provides top-notch flats and apartments in Calicut,Kannur and Aluva. For booking your apartment, contact us today or visit our website for more information.