To safeguard against
malpractices and irregularities to be found in the system of construction of flats for
sale on ownership basis, every non-resident Indian wishing to book a flat with a builder /
promoter in India is expected to keep in mind following few basic points before deciding
to book a flat on ownership basis.
I.
About the builder / promoter:
Good
Average
Bad
(i)
How is the reputation of the promoter
/ builder?
(ii)
Examine the number of
buildings/projects that the builder has completed in the past.
(iii)
How is the quality of the
construction in respect of buildings completed by the builder / promoter?
(iv)
What is the financial standing of
the builder/promoter?
(v)
Adequacy of the technical staff
employed with the builder.
(vi)
How are his past dealings with the
customers?
II.
About the title deeds
Yes
No
(i)
Has the builder shown to the flat
purchaser relevant documents regarding title of plot on which the building is proposed to
be constructed?
(ii)
Is the title certificate from a
reputed Solicitor / Advocate attached to the agreement?
(iii)
Has the builder annexed the
description of land in detail in the form of schedule in the agreement?
(iv)
Whether all information regarding
the encumbrances is brought out clearly or is there vague reference to the encumbrances?
(v)
Is the extract of property register
card or other revenue record of the land/plot on which the flats are going to be
constructed attached to the agreement for sale?
III.
Inspection of
Plans/Drawings
(i)
Has the builder got the approval of
plans / drawings from the Municipal Authorities / Local Authority?
(ii)
Has the builder shown to the flat
purchaser the approved plans/drawings to the flat purchaser?
(iii)
Has the builder shown to the flat
purchaser the copy of commencement certificate (C.C.) and Intimation of disapproval
(I.O.D.)?
IV.
Area, number of
flat etc.
(i)
Is the serial number of flat, floor
at which it is located, name of building/wing distinctly indicated in the body of
agreement?
(ii)
Is the carpet area/built-up area
of flat distinctly indicated in the body of agreement?
(iii)
Is the dimensioned floor plan
marking the subject flat annexed to the agreement?
(iv)
Is the plan referred to in (iii)
above duly signed by builder at the time of execution of the agreement?
V.
Amenities/specifications
(i)
Has the builder annexed with
agreement a schedule of amenities/specifications (type of construction, flooring, doors,
windows, sanitary and water supply, electrical fittings)?
(ii)
Is the sale agreement in
accordance with the conditions laid down by the Urban Land (Ceilings & Regulations)
Authorities?
VI.
Nature, extent and
description of common areas and facilities etc.
(i)
Does the agreement for sale
describe distinctly the common areas and facilities (such as entrance hall, foyer of
building, compound wall etc.) and limited common areas and facilities (landing in front of
staircase etc.), percentage/interest of flat purchaser in common areas and limited common
areas / facilities?
VII.
Possession
(i)
Is the date by which possession of
the flat is to given specified in the agreement for sale?
(ii)
Is there provision in the
agreement for refund of the amounts due by the builder alongwith simple interest @ 9% per
annum from the date of receipt by builder till the date of refund in the event of failure
of the builder to give possession of the flat by stipulated date or mutually agreed
extended date?
VIII.
Mode of payment
(i)
Is the mode of payment of
instalments distinctly mentioned in the agreement for sale?
IX.
Permissions under
Urban Land Ceiling and Regulation Act 1976.
(i)
Has the builder obtained permission
of the competent authority under Urban Land Ceiling and Regulation Act 1976 for developing
the land/plot on which proposed building is to be constructed?
(ii)
Is the sale agreement in
accordance with the conditions laid down by the Urban Land (Ceiling & Regulation)
Authorities?
X.
Out goings
(i)
Has the builder mentioned in the
agreement the amounts payable by flat purchaser on taking possession in respect of legal
charges, share money, application entrance fee of society, charges for formation and
registration of the society and proportionate share of taxes and other charges?
XI.
Stamp duty and
registration
(i)
Is the flat purchaser aware about
the quantum of stamp duty payable by him at the time of execution of agreement?
(ii)
Is the flat purchaser aware that
the registration of agreement in respect of flat purchased from the builder is compulsory?
(iii)
Is the flat purchaser aware of
the amount of registration charges payable by him?
(iv)
Is the flat purchaser aware of the
fact that the time limit for registering agreement for sale is 4 months from the date of
its execution?
XII.
Form No. 37-I
(i)
Whether filing of form no. 37-I
under chapter XX-C of Income Tax is to be filed in respect of transaction of subject flat?
(ii)
If answer to
i) above is in
affirmative, is the flat purchaser informed about the procedure for filing form no. 37-I?
(iii)
Is the flat purchaser aware of
the implications of filing form no. 37-I?
