Actual

So you have identified the house that you want to buy, got the home loan approved and now are ready to own your house. Think its smooth sailing from here onwards? Think again.

Once you have completed these formalities, the next part is ensuring that the builder does not entangle you in any legal traps. There are some very important points to consider when you are about to enter into an agreement with the developer.

Let's take a look at 5 such points you need to remember and the measures you can take against them.

Point 1: Actual price of the house

The agreement you enter into with the builder details the various costs that you will need to bear for buying the house. This would include the cost for utilities like electricity and water, parking space, various taxes and in some cases even the registration charges.

However, the builder may then levy some extra charges for any of these.

Measures to take

Check the agreement very carefully for all the charges applicable.
If possible, get the agreement checked by a lawyer for any missing or hidden charges and get the anomalies (if any) rectified by the builder.
If the extra charges are for alterations made to the original plan, ask the builder for the sanction letter provided by government authorities for such alterations.

Point 2: Actual size of the house

The agreement would clearly mention the size of the house you are purchasing. However, there is a clause which states '. . . the plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications. . .'

Therefore, you may agree for a certain size, but the builder can give a different size.

Measures to take

Before freezing on your choice of a builder, do some research about the builder's past projects.
If possible, talk with other buyers who already have got possession about problems faced by them
Try and include a clause in the agreement stating the minimum