8 Common Mistakes To Avoid When Buying Under-Construction Property

An under-construction property offers multiple benefits, but it is important to be aware of the risks as well

People often choose under-construction property, as it is generally available at lower prices and has good potential for appreciation. However, the benefits will be accessible only when the necessary guidelines are followed. Let us take a look at some common mistakes that people need to avoid when purchasing an under-construction property.

Ignoring RERA registration – The Real Estate Regulatory Authority (RERA) has benefitted many property buyers, who were facing challenges such as delayed delivery. It is important to ensure that the project you are investing in is registered with RERA. Some people may ignore RERA either due to lack of proper awareness or the promise of special benefits offered by the builder. Such decisions can lead to problems at a later stage. RERA ensures greater transparency and protects property from frauds and project delays.

Not checking builder’s past record – Some people tend to focus solely on the project, while ignoring the past record of the builder. They may think that they have found a favorable deal and may not be aware of future risks. It is important to check a builder’s reputation and get details about the quality and completion timelines of earlier projects. For builders executing their first project, it becomes even more important to ensure they are RERA registered.

Overlooking legal documentation – Many people do not care much about the legality of the project. This can be due to lack of awareness or inability to understand the complex legal requirements. This can lead to disputes or financial losses at a later stage. Property buyers should look at all the relevant legal documents such as title deed, building approvals and encumbrance certificate.

Not checking hidden costs – People often get misled by the attractive deals offered by the real estate agent. However, such offers may hide the hidden costs and fees. For example, there could be high maintenance fees or parking space charges, which could be disclosed at a later stage. Property buyers should demand a full disclosure of all the charges before signing the deal.

Choosing the builder’s loan offer – Many builders partner with home loan service providers and present attractive offers to property buyers. Agents might promise things like quick approval and low interest rates. However, such promises may not always be true. A property buyer has the right to select the home loan of their choice.

Not checking amenity completion timelines – A builder can offer many amenities and most people believe in such promises. But it has been noticed in many cases that the builder may fail to build the amenities. Especially if the flats are sold out. In such cases, amenities like pools, gyms and clubhouses may become unavailable. Property buyers should make sure they have written confirmation from the builder.

Not having an exit strategy – A lot can happen in life, which can force a property buyer to change their plans. People should choose projects that have easy exit options. They should scan the sales agreement for clauses like lock-in periods, exit charges or property transfer limitations. Investment should be made only if the project has easy exit plans.

Not exploring the neighborhood – The project may be good, but what about the neighborhood? There can be various issues such as slums, polluting industries, lack of public transport, high crime rate, etc. These adverse factors can ruin the living experience. Before buying a property, it is better to check the neighborhood and also explore how it may develop in the future.