While Buying

Clear Title

Before buying, check whether the title is clear. The flow of document should be continuous and there should be no encumbrance for atleast 30 years. All the document should be registered documents. If any minor’s property is involved the seller should have taken the court permission. If it is a city property and being sold on the basis of will, the will should have been probated. If the property is being transacted on the basis of general power of attorney, the general power of attorney should be a valid registered document and is in force and not cancelled.

Uniform Agreement Clause

The sale and the construction agreements between the builder and the flat buyers should have the same classes for everybody. If things are being altered to suit individual requirements then agreements of the different buyers will be contradicting and needs to be verified on one’s claim. No individual can have an exclusive rights in the common area. Also make sure the agreement binds on the tenants and successive buyers.

Calculation of Common Area

One has to check whether the common area and amenities area are charged on actuals and not as in most of the cases where it is charged on the percentage of the construction area. Common area is generally the area covered by stair case, Lift room, head room and watch man room etc., Amenities area are gymnasium, indoor courts and community hall etc..

Undivided Share of Land

Your purchase price consist of the following components:
Land cost + Construction cost + }
Development/Overhead charges + } = Purchase price.
Margin }

On the investment you make on a residential property the land price appreciates and the building price depreciates over a period of time. Normally the life of a concrete structure is around 40 years. Once the property is going for redevelopment like today’s housing board apartments, you get your flat area in the redeveloped property or the sale price depending upon your undivided share of land only. The table below gives the rough idea about the quantum of land area you get for the type of building you buy.

Land Appreciates.. Building Appreciates
Land Share Statement on different type of constructions
	Allowed F.S.I. (maximum)	Achievable F.S.I. (No. of times .of construction area to the land area)	Undivided share of land area for every 1000 Sft. of constructed area	Advantages	Dis Advantages
Independent house	1.5	1.25 (due to restriction on plot coverage, set back restrictions)	800 Sft.	i) Better appreciations, ii) open space availability, iii) Privacy.	i) More investment, ii) Problems in locating the property, iii) Legal issues, iv) safety, v) Attending the maintenance problem, vi) And more maintenance charges
Gruond + one building	1.5	1.35 to 1.45 (reduction due to restriction on plot coverage, set back space, No. of Kitchen and carpark restrictions)	710 Sft.	i) Lesser maintenance, ii) Safety	i) Lesser open space, ii) Parking restriction, iii) Lack of extra facilities, like Gym, playground etc, iv) Smaller roads.
Gruond + 3 storied building (or) stilt + 4 storied	1.5	1.6 (increase due to non F.S.I. area like headroom, lumber room areas )	625 Sft.	i) More open space, ii) Better land share, iii) Good ventilation.	i) Higher maintenance charges
Gruond + 4 floors and above	2.5	2.6 (increase due to non F.S.I. area like headroom, lumber room and associate room areas etc.)	385 Sft.	i) Better ventilation, ii) More of open space, iii) More amenities, iv) Wider approach road.	i) Lesser land share, ii) Very highmaintenance charges, iii) More crowd.
The land share is calculated on the basis of construction without any deviation from CMDA rules.

Who is doing the constructions?

You have to ascertain whether the builder has his own set of people to under take the construction or it is subcontractor who is doing the job. Mostly the sub contract is awarded to the lowest bidder then the quality of material used and workman ship suffers and also the instructions on some modifications and corrections will take a long route to reach the person doing the job. The contractor will not be accountable for his mistakes. So it is always better to choose somebody who involves both in promotion and construction.

No Deviation

Always check the construction is as per the CMDA approved plan. There should not be any extension in the set back area or construction in the terrace area. Any deviation will lead to reduction of your land share and demolition notices from the authority.

Terrace right

Ensure that the builder doesn’t retain any undivided share of land or retain the rights to develop the terrace in future if the CMDA amends some of their rules and regulations.

Payment for the work done

Always make your payment according to the progress of construction or pre agreed terms between the builder and you. Even if the funding is from the bank i.e from your loan, make sure the payment is made only to the extent of the work done. If more money is drawn from the loan account you have to pay more of pre EMI interest.

Resident welfare association

The agreement between the builder and the buyer should have a clause thereby the buyer undertakes to become the member of the residents welfare society and contributes all his payments and dues to the association, towards the spending on maintenance, water charges common electricity charges etc., The rules formed by the association of all members will be binding on all of them and also the tenants and the successive buyers.