Features: Magazine | Literary Review | Life | Metro Plus | Open Page | Education Plus | Book Review | Business | SciTech | NXg | Friday Review | Cinema Plus | Young World | Property Plus | Quest | Folio |

Photo: S. RAMESH KURUP

IN DEMAND: Builders woo customers with facilities such as children's play areas.

The rising levels of income of the younger generation prompt them to invest in real estate. Salaries of those in their late 40s and early 50s are also shooting up.

One of the factors that is said to be kindling buyer interest in property is the announcement of the Sixth Pay Commission recommendations for Union government employees.

Many employees now want to invest the additional income that may come their way in acquiring homes. Some of them may go for second homes, as they have already completed paying the equated monthly instalments of previous housing loans. Others may foreclose old loans and borrow afresh. Housing loan is a major head that helps the salaried class get income tax rebates.

Private companies give their employees annual raises that touch even 50 per cent. Most of them belong to the banking, insurance, telecommunications and retail sectors.

So, one option, many believe, is to get invested in housing.

And this is going to prop up the markets in the banking, financial and real estate markets, though many economic experts fear a downside in corporate earnings this financial year.

Many builders lure customers with world-class facilities. But value-added packages of builders may not be genuine. Several new developers have started businesses taking a cue from reputable companies. They target all types of clients, including the Union and the State government employees, professionals and non-resident Indians, with fabulous offers. Customers should not fall prey to unscrupulous methods adopted by the property builders.

Those planning to buy new apartments need to check for some key points. Always go for reputable builders. Verify their credentials with organisations such as the Kerala Builders’ Forum.

Usually, reputable companies adhere to guidelines of the National Building Code of India and other rules prescribed by the government and the local bodies. Besides, they outsource work to qualified architects and engineers and they may also have their own wings to supervise construction.

Visit the site and check for documents before signing agreements. Check whether the area is polluted or not. Apartments or villas in the heart of the city or in the suburbs can meet with environmental problems.

Make sure the private roads leading to the apartments are wide as well as owned by the builder.

Otherwise, it can lead to complicated problems such as a recent incident in the city resulting in skirmishes between a landowner and the builder. A Corporation councillor, who was caught in the crossfire, was injured in the clash.

Today, homebuilders give importance to specifications of foundation, flooring, plumbing and electrification. Some companies boast providing facilities such as telephone and cable television conduits in the living room, upper living room and bedrooms. Others offer generator back-up and Wi-Fi Internet.

Other amenities offered are 24-hour security, play area for children, lifts, common area, rooftop party area, landscape garden and ample parking spaces. Some builders insist on additional pay for parking.

Confirm if the builder has secured clearance for construction from the Corporation. Ensure that the company is constructing the apartments on its own site.

Normally, agreements are loaded in favour of the developers.

Delay in delivery of flats and villas is one of the biggest problems confronted by customers. Poor quality of construction and builders demanding more money from the clients than that agreed upon are other issues.

Clients should insist on the builders to include in the agreement the date of delivery of their flat. Try to add a clause in the agreement that the builder will have to pay a penalty for delaying the project.

A certificate of completion is a must for every building. The Corporation issues such a certificate stating that the building has been completed on the approved plan. The certificate will not be issued if the builder deviates from the plan. Certificates should also be obtained for fire safety measures, earthquake proofing and disaster management.

Only a certificate of completion entitles the buyer of the flat to get an ownership certificate. Without the ownership certificate, one cannot sell or mortgage the flat.

Customers, if they feel cheated, can initiate legal action against builders. Section 418 (cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect); Section 420 (cheating and dishonestly inducing delivery of property); and Section 405 (criminal breach of trust) of the Indian Penal Code can be invoked. Moreover, house construction has been brought under the purview of the Consumer Protection Act.

Printer friendly page  
Send this article to Friends by E-Mail