Questions to Ask a Sales Representative Before Booking a Flat
Buying a new flat can be a very tedious affair. At every level you will face several questions that need to be asked and understood. Often, with first time property buyers, the right questions that need to be asked can remain elusive.
Below you will find important questions that will help you make an informed decision. Knowing answers to these will also prevent any complicated legal and financial hassles that you may face in the long run.
If you are planning to invest in a new flat, here are some important questions that you must ask the sales representative:
The first question you should ask is which banks have lent their approval to this project? It is important that you check which all banks have come on board in terms of approvals for this project. This information will make approaching financial institutions for a home loan easier for you in terms of paperwork. Getting a APF number which refers to the Approved Project Financial number or code given by the respective bank after the approval of the project stands testimony to the quality of the project as banks will have done their due diligence.
Asking details for legal title clarity of the project? Ask for the passed license of the project which will tell you whether that land has been rightly converted for residential or commercial kind of use. It is important to know whether the land acquisition is complete before you actually book or invest in a new flat that is under construction. It is often seen that builders or developers acquire 80% of the land but end up with legal issues when trying to acquire the last 20%. Also have a look at the Commencement Certificate.
The third thing would be to ask for a detailed breakup of the all inclusive price offered to you. Their all inclusive price should include the cost of utilities such as water connection and supply and electricity connection as well as lift services and parking space whether covered or not, the quantity and besides, of course the registration costs. All the taxes applicable must be included in it including the legal charges that may be necessary. With this breakup of cost in hand you can be sure that the builder does not spring any surprises in terms of costs at a later stage. You can also ask a receipt to the builder for the above spending.
Try to know the actual size in sq.ft. of your flat. A clear understanding of the built-up area, the carpet area and the super built up area including the loading charges will help you interpret the actual size of your flat. Actual habitable portion of the space in your flat, without the thickness of the walls included is the Carpet area of your flat. Built-up area takes into consideration, thickness of the walls and the balcony as well. The super built-up area includes all of this as well as the area shared as common space, this common cost is beard or charged in the name of loading which is usually 25% to 40% depending on the quantity and quality of common facilities provided by the builder.
Inquire and know about the construction agreement terms. Ideally stick to an arrangement where you have a strictly construction progress linked payment plan. This ensures that you pay only the full amount of money closer to possession or after it. This places the onus on the builder or developer to complete the project on time.
Know the tentative completion date of the project. This information will help you ascertain when your flat will be ready for you to move in. This will also help you plan your loans or finances. An important aspect to check is what kind of penalties that may be in place if the builder not is able to complete the project in time, since every builder adds a penalty clause for you, for delaying the payment as scheduled in the agreement.
Inquire about the remedial measures if the builder decides to change the plan of the project. There are times when a builder or developer may change a plan to suit a particular need in-between the ongoing construction. This may cause to increase your flat size or may even decrease it. Amenities you may have been promised may change in terms of positioning and quantity. You have to make yourself clear beforehand on the remedial measures and how the builder will handle the change in financial obligations in such case should arise.
You may also want to ask the sales person questions related to:
Extra charges that may be levied for preferential location or amenities, development charges and the like
What penalties may be involved should you not be able to pay on time.
Escalation clauses if any and the means or reasons the builder will use to assure you that the rise in cost was a legitimate one.
Of course during the course of your interaction you may also find several additional questions that may spring up in your mind. Do remember that no question is trivial and that you should have all your doubts cleared before you book your flat.
And last but not the least, ensure the floor that you are buying is approved by Municipal Corporation and check the blue print of the approval plan for that floor.
Important Takeaways are:
It is important that you have all your questions listed down to ask the sales person.
Your questions should cover clear title of land, size of flat, loans or finances, important clauses among other subjects and penalties.
No question of yours is unimportant here, try to get satisfying answers, clear all your doubts during your interaction with the sales person before you book a flat.