Builders in India sell their flats primarily as RERA registered projects.
They advertise their projects through various sites, hoardings and advertisement in newspapers. They make advertisement for pre-launch of their projects where initially rate for period prior to launch is lesser than the normal rate per sq ft of carpet area / built up area. They also invite their Real estate agents or brokers and make them available all the flats for booking prior to public. These agents book the Builders flats either in their own name or in the name of their Investors and resell them later at a premium at the time of formal launch or later when the prices go up. So, the NRI Investor who is sitting at a distant location has the following ways to book a flat
1 Direct with Builder at pre-launch/ launch either in builder’s website, other housing portals or at site office or builder office.
2 Through Real estate agents, brokers or Chanel parters at their office or their portals. Always make the booking payment in the name of Builders company and in the name of Agents.
3 At various property exhibitions or Road show at various locations.
At the time of booking Builder make a formal booking application and normally you have to pay 5% or 10% of the total cost of the flat subject to variation as per actual size that is measured at the time of competition or handover. Once the amount is encashed the Builder issue a Allotment letter in your name.
NRI has to note that the booking amount is paid through cheque or draft in the Builders company name. This amount should not be released in the name of Brokers company. Also to note that Allotment letter is issued by the Builders company.
Once you have paid the booking amount and allotment letter is issued then this is followed by builder’s buyer agreement which outlines the payment schedules and possession timeliness The payment is either construction link plan, time link plan or down payment plan. Buyer has to opt the plan as per his convenience.
Buyers need to check the RERA website for project authenticity, Builders decryption, past projects, Time promised and handover time. They need to check the land title, occupancy certificate or competition certificate. They also need to check the data recorded on site when they are asked for release of part progressive payments as per construction linked programme. Also, they need to see time to time the project progress from RERA site
The essential documents required for buyer is
Allotment letter
Builder Buyer agreement
Payment receipts in original
Occupation certificate for Final handover
Sale deed for final registration
The buyer must make the payments as per agreement to avoid penalty and late payment charges / interest. The buyer must know enter into a agreement of maintenance at the time of handover and pay the maintain ace charges to the association of maintain ace company to avoid late fees / interest.
The buyer must read the RERA site and know that if the Project has more facilities, their maintenance charges will be higher. If the Buyer is taking the flats for Investment purpose, the prelaunch period is good provided we carefully analyse the Builders record. Normally every property gives a good return on Investment .