Young buyers are loosing trust and apprehensive about investing money in good properties, because they fear a delay in the project or worse losing their entire investment. But, little education, awareness and precaution can protect you from loosing money, and can guarantee the expectations for your investment.
PROTECTING YOUR MONEY
- Always take a Receipt of the payment that you make. Prefer if you can get it signed by top management.
- Make sure the duplicate copy is same as original and taken with carbon paper. Otherwise sign the hand written duplicate copy again.
- Read, understand and get a signed copy of return policy. Insist that no deduction should take place in the event of cancellation.
- In the case of pre-launch property, insist on return of money with high interest rate in the event of cancellation by builder. Get this done on stamp paper signed by top management.
- Keep the copy of booking form and payment cheques signed by top management.
- The agreement money, along with Sale Agreement, serves the purpose of securing the transaction between the seller and the buyer. Read it carefully and make sure all the commitments made by builders are mentioned in this document. It is a binding document, specifically enforceable in a court of law in terms of the mutual promises of the parties recorded therein.
- Propose and agree upon the penalty clause in case of delay and get it documented in sale agreement.
- Make sure all the advertised specification with fine details are listed in construction agreement.
- In the event of resale of under construction property, most builders allow endorsement of their Sale Agreement with the first buyer - now seller - in favour of subsequent buyers subject to a transfer fee being paid to the builder. Be aware of TRANSFER FEE and get this written in agreement if you agree to it.
- In case of pre-launch property, a sale agreement can not be made, insist on an Investors agreement that records the usual terms of an sale agreement, such as the total consideration, the time period for payment of balance consideration, description of the property, etc.