Running around both within the Bengaluru city inskirts and the Bruhat Bengaluru areas, let us assume you have zeroed in on the dream villa in Bangalore you wish to buy. You have carefully made your considerations about the property, by strategically running through the location, cost, the brand reputation, accessibility, etc.
Most of the time, consumers get carried away with a glossy, sassed up brochure of the project and fair amount of chances are- you too were taken for a ride by the sales managers who pitched high of their products. Now, every prospective buyer needs to have that eye (read insight) to distinguish between actual photographs on the brochures and 3D renderings. No matter how alluring your dream home may look to be, you must always check certain facts about the property you plan on buying.
The property builder will set his terms and conditions for the payment- you would first pay an upfront booking fees (20%), 70% of the payments to be given in instalments (usually based on your CIBIL scores decided by the bank or third-party loan provider) and rest 10% after the sale deed is made on registration. However, you have to take every care before you plan to register with any of the property dealers (reputed or otherwise). 4 strict caveats about registering on a property that is still under construction, no matter how much running around you have done before you decided on the authenticity of the builders you have zeroed in on:
#1- Construction work won’t be complete on time
Even though the builder will have convinced you to pay the entire 70% within 2 to 3 month time, convincing your bank to sanction and release the loan within that time, his construction work would not be complete before 2 to 3 years of the time he mentioned, before you signed the papers.
Most of the time, the builders will have built the edifice, but the fine works, like the fittings, electricity connections, wood works, etc. will definitely be delayed on excuses of weather, unavailability of labour and the list is on.
#2- The builder may ask you to move in without the Occupancy Certificate (OC)
The moment you’ll have done your sale deed agreement, your dealer will hand you over the house keys asking you to move in. However, he will, in most of the cases, not provide you with the OC. This is when you would have realised that you are actually in a thick soup. Your electricity connection may be temporary, meaning you don’t have enough watts to run your electrical appliances like the geyser, microwave, mixer grinder, washing machine, etc.
So, after making full payment for your dream villas in Bangalore, you now understand you are left in the lurch. You may be living in a gated community where there are no security guards, your community park and sports stadium never got built, and you actually never saw the picture perfect gated community you were lured into buying.
#3- No OC means no Khata
The strict ruling with BBMP (Bruhut Bengaluru Mahanagar Palike) is- you would be provided with your A-Khata only if your building is constructed under the construction rules set down by the BBMP. If your plan deviates more than 5% of the BBMP sanctions, you will not be allowed the OC. Most of the builders assure that deviating from plans is quite common, but in actual situation you would be left with neither the option of selling your property nor receive the approval for mortgage from bank for a loan.
Hence, you are left with a property that you can neither enjoy, owing to lack of basic facilities nor sell as you do not possess valid legal documents. So, with all your dreams of owning a villa in Bangalore, you are actually poor by nearly a crore and have a house you can neither enjoy nor sell.
#4- Don’t pay 90% of your property amount before sales deed
Most builders are so well connected with the banks that they can easily get your loan sanctions within no time. In Bangalore, 80% of the bank’s business comes from property loans, so they sanction loans easily without checking the Khata details. However, the same bank won’t approve of a mortgage loan if your property does not fall under an A-Khata.
Hence, you have to remember not to pay the builder all the money until they have shown you an A-Khata for the property you have bought. The best option is not to go for registration for those builders whose 75% of the project has been completed.
We all live with some basic dreams, and if you are a Bangalorean- owning a villa in Bangalore would certainly be one. Hence, you need to take every protection to ensure you are not robbed of your dreams.