10 Question Before You Buy A Property

Question 1

Is the TITLE of land clear?

Projects promoted by Modi Properties Other Builders What should you do? The land is registered in the name of the company. Link documents of 30+ years are available upon request. Most Builders generally operate on a series of GPA’s or development agreements involving several parties unknown to the Buyer. The title of the land is compromised to save registration charges. Buyer suffers in case of dispute between Builder and Original Owner. Sometimes the title itself is in dispute. Even lands auctioned by the Govt. are at times litigated. Insist for a copy of title documents, link documents, development agreements & GPA’s (if any), tax receipts, etc. Ensure that link documents are available for at least 20 years.

Question 2 (a)

Are the necessary APPROVALS obtained?

Projects promoted by Modi Properties Other Builders What should you do? Bookings for projects are not opened until all necessary approvals are obtained from GHMC/HMDA. Approved plans are available for inspection upon request. Most local builders have no sanction. The so called ‘Grampanchayat’ approvals are not valid as Grampanchayats have no authority to grant approvals. Such constructions are absolutely illegal. Several organized sector builders start bookings before receipt of approvals. Such approvals may be delayed for years or plans may be changed to meet building bye-laws. Project may be indefinitely delayed and sometimes may never come up. Insist on seeing & understanding the approved plans from HMDA/GHMC before paying the booking amount. Stay away from ‘Grampanchayat’ approved projects.

Question 2 (b)

Is the construction as per the APPROVED PLANS of HMDA/GHMC?

Projects promoted by Modi Properties Other Builders What should you do? Projects of Modi Properties are being built exactly as per sanction plan – no more, no less. No illegal constructions are made. Most Local Builders generally deviate by about 30 to 70% from the sanction plan to reduce the cost per sft of constructed area. Deviation is made by addition of extra floors, covering the parking area and building extra area on each floor. Most organized sector builders also deviate from the approved plans. The Buyer ends up buying illegal construction, which is subject to demolition or penalty on a later date Make sure that there is no more construction than mentioned in the approved plans. Avoid projects with deviations

Question 3

What is the QUALITY of material, equipment & manpower used for construction?

Projects promoted by Modi Properties Other Builders What should you do? Projects of Modi Properties are built to the highest standards of quality. Materials used are of well known brands with ISI certification. Quality is enforced by qualified engineers at site. An idependent Quality Control Team cross checks and certifies quality at several different stages. Good quality construction ensures long life of the building. Most Local Builders use substandard material from local unregistered suppliers, without any supervision, thereby severely compromising the quality of construction. This saves cost for the Builder but in the long run proves very costly for the Buyer. Problems like water leakage, cracked walls, short circuit, etc. are very common. Spot-check the quality of materials used. Insist on meeting the site engineers/ supervisors & check their qualifications.

Question 4

Will the flats /villas be COMPLETED on time?

Projects promoted by Modi Properties Other Builders What should you do? The delivery dates of flats/villas are clearly mentioned in our brochure, website and all agreements. Till date we have a near 100% track record of on time completion across all our projects. On time completion is almost unheard off in the twin cities. Most projects are delayed by months if not by years. Large projects and Govt. sponsored projects are in most cases delayed by years.. Insist on a written commitment for the date of completion.

Question 5

Will the COMMON AMENITIES be provided?

Projects promoted by Modi Properties Other Builders What should you do? In most projects of Modi Properties infrastructure work for the common amenities like roads, drains, power supply, water, etc., is completed within the first year of construction. Other amenities like clubhouse, parks, etc., are generally completed within 18 to 24 months from start of construction, i.e., well before the entire project is completed. Most Local Builders do not provide even the basic amenities like drainage, paved roads, lighting, etc. as required by law. Even those that are provided are delayed by months after handing over possession. In several large projects some amenities promised remain only on paper and are never provided. Commitments to develop 5 star hotels, lake fronts, malls, etc., in large projects are almost never kept. Be wary of such promises. Make sure that the work on the common amenities is under taken along with the rest of the construction. Insist on list of amenities being provided in writing along with time frame of construction.

Question 6

What is the WRITTEN PROOF of allotment, payment terms & payments made?

Projects promoted by Modi Properties Other Builders What should you do? On payment of the first installment a Sale Agreement is executed in the buyers favour clearly stating their rights & obligations. A ‘Pakka’ receipt is issued for every payment made. Formats of all agreements and deeds are available on our website. Most Local Builders avoid agreements & written commitments. Loose receipts are given. The Buyer is at the mercy of the Builder, as he has no proof of allotment or of payments made. Several organized builders confirm allotment or enter into an agreement only on payment of substantial amounts. Till such time the buyer does not have any rights. Insist on a sale agreement and receipts for each payment made.

Question 7

What is the Builder’s TRACK RECORD?

Projects promoted by Modi Properties Other Builders What should you do? Modi Properties are in the field for over 4 decades with over a dozen projects to their credit. Most Builders are 1 or 2 project wonders! Beware of such Builders (even if close friends or relatives recommend them). Most such projects end up in a mess. Several large constructions are being promoted by builders having no experience of executing such large projects. Buy only from Builders who have an experience & track record of atleast 5 years. For large projects check the builders experience and capability to execute it.

Question 8

Are there any other HIDDEN COSTS?

Projects promoted by Modi Properties Other Builders What should you do? There are no Hidden Costs. All costs are mentioned up front. Hidden Costs like amenity charges, water & electricity charges, incidental expenses for registration, charges for escalation in cost of building materials, etc. are invariably added later. Make sure that all costs are declared upfront and given to you in writing by the Builder.

Question 9

How will adequate WATER SUPPLY be ensured?

Projects promoted by Modi Properties Other Builders What should you do? Every effort will be made to conserve water by implementing rainwater harvesting, recycling water for gardening, etc. A separate bore well water & drinking water connection will be provided to each unit. In most buildings borewells regularly run dry. Adequate Municipal water is rarely provided. Most Builders leave it to the society to deal with the water problem. No prior planning is done to tackle the water problem. Make sure that the application for municipal water connection is made well in advance. Ensure that rainwater harvesting is implemented.

Question 10

Who will MAINTAIN the common amenities & at what cost?

Projects promoted by Modi Properties Other Builders What should you do? A professional maintenance setup with a supervisor, security, electrician, plumber, sweepers, gardeners, lift-men etc. will be provided to the Owners Association (a non profit organization). Maintenance Charges have been fixed at reasonable rates. The Owners Association will be managed by duly elected members. Modi Properties continues to provide service to its customers in all its projects even after several years of completing the project. The clubhouse is for the exclusive use of the residents of the project free of cost. Most Builders collect maintenance charges but do not provide any service. Without regular maintenance the building depreciates very quickly. In some cases corpus fund collected is used by the builder as working capital. At times maintenance becomes a profit centre for the builder. In several large projects the Clubhouse is owned by the builder and residents are charged commercial rates for its use. Check with Builder about maintenance setup & maintenance charges. Check about the ownership and exclusive use of the club house.