Developers are usually reluctant to give out property details that may raise doubts in a buyer’s mind. Hence, you must be careful before zeroing-in on that property.

The real estate sector is crippled with lack of crucial information. While you, as a buyer, may want in-depth information about the property, developers may not be willing to share many details. As a result, there have been instances in the past where buyers either felt cheated or regretted their decision of not making sufficient enquiries about the property beforehand.

Owing to the huge amount of investment required, a buyer is bound to have multiple questions about the property. These can include details about the area, amenities, locality infrastructure, location, accessibility and neighbourhood, among others.

Transparency of information is a crucial factor in real estate transactions. Developers usually give out those details that work in their advantage and help sell the property fast. They may not be willing to share other information that may make the buyer re-consider his decision of buying that property. However, you must dig deep to find details about these things to make the most secure real estate investment.

1. Land issues: Check that the land on which the property is built is free from any disputes or reservations. Ensure that there are no legal titles associated with the land. A dispute on the land can be the biggest problem for your property. At times, the developer may not have got the project approval from the authorities.

2. Actual size of the flat: Developers are quick to take advantage as buyers are confused by terms such as super area, carpet area and built up area. Besides, the sample flat at the construction site is designed in such a manner that it appears bigger. The design, lighting and furniture placed in the sample flat are sufficient to create an illusion in the buyer’s mind. Buyers must not make the mistake of assuming that the sample flat is a true indication of their actual flat.

3. Possession time: Project delays are extremely common these days. The date of possession remains a mystery for a buyer, who keeps waiting till the developer’s promised delivery time of the project. Although the builder may promise compensation for a delay in possession, this is something you cannot trust. This is the reason that construction-based payments have become popular among buyers.

4. Actual prices: The prices will soon be revised is the favourite trick of a developer to entice buyers. Buyers are also taken in by the developer’s offers of discount and freebies.

The recently approved Real Estate Regulation Bill emphasizes measures that will help in identifying and booking errant developers and builders. Among other things, the bill seeks to enhance transparency and imposes a payment of 5 per cent of the project cost in case of wrong disclosure of information or not complying with the disclosure and requirements.

By Nitin Puri