Sound Agreement Between Buyer & Builder

After all the running around you have finally made up your mind and chosen your dream home. Do you think it is the end of your worries and it’s just a matter of time and you’ll soon sign the ‘sales agreement’ to become a proud home owner?

In reality post selection procedure is more crucial than the selection procedure. Are you wondering why and how? This is the stage where one actually has to pay and get away with his life savings.

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Rather than reading and analyzing the impact of each and every clause in the agreement or consulting a property lawyer, most of the time buyers simply sign it. They usually think it’s too long or they simply ignore it as the language is too technical or at times are overwhelmed about owning a house, and hence, fall in the trap. Developers take advantage of buyers’ ignorance and draft agreements which are highly developed based.

Here is a list of checkpoints that a buyer must keep a check before signing the sales agreement with the developer:

Firstly a sales agreement is a legal document which lists the terms and conditions of the transaction. These are agreed upon by the parties involved and bind the parties to fulfil their part of the commitment.

Most of the contracts have a clause stating that the given plans are tentative and therefore, there can be alterations in the final product. Also, the final price of the house is adjusted accordingly. There should always be a mention of the permissible extent of such changes.

Usually the builders sell on super built up area which includes the actual area of the house along with an unaccountable addition for common spaces. One should be careful and should make the developer include the details of carpet area and super area in the agreement. This also gives the buyer an account of the extra charges demanded with respect to alterations in the plans at a later stage.

Details of all the charges starting from the basic cost of the house to all the extra charges the buyer has to bear should be clearly mentioned. All the levied charges like utility charges, maintenance fees, club house membership charges, parking charges should be included in the agreement. There have been cases especially in Mumbai where developers have sold the parking to external parties even when as per the contract they belong to a resident of the society.

Another critical and must do point is registering the sales agreement to avoid litigation at a later stage. Being a legal document it helps in case of a fraud and creates a public record of your property. In case of any discrepancy a buyer should always go to the consumer court as they favor buyers. Also, buyers facing similar problems should collectively work on the issue to build up pressure on the developer and other concerned parties. Consumer forums and other social networking mediums are also strong in today’s time.

In the end, with the absence of any regulation defining real estate practices in India, it is a buyer’s duty to check the agreement before signing it. It is advisable to consult a lawyer and demand alterations in the agreement if required before formally signing it. It’s always best to do a check on builder’s track record. Above all, a sales agreement should always be registered.

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Delhi metro and its influence on real estate

Delhi Metro Railways, generally referred to as “Metro” was launched in the year 2002 to fulfill the demand of traffic congestion in the city. Metro although being conceptualized as a social profit compared to being an economic one, has clad to be vastly to blame for the economic process of the region and therefore the town especially. Over the last 5-7 years, the land costs round the Metro railway areas have raised as developers flocked in to speculate in those areas, and patrons notice it a profitable possibility due to easy accessibility and development in those areas. 

Delhi Metro influence on real estate

Metro has a direct influence on the real estate business in NCR. Within the time of the land boom, localities wherever metro is operational (or close to start), tend to appreciate better that different localities. These localities are conjointly expertise a lower cost correction throughout the slowdown period. Major infrastructure projects are launched keeping proximity to Metro as the sole deciding factor. The “Metro Walk mall” close to Rithala station and “Delhi Hatt” at Kohat district are cases in point. Retail shopping areas have conjointly come back up at Netaji Subhash Place and Indralok stations. This is often simply the beginning and one would see metro become the attentiveness for major infrastructure projects in the town.

Ever since metro’s enlargement plans for NCR was declared, folks that were earlier unwilling to maneuver out of the city have started staring at NCR as a viable living possibility. The comfort of an air-conditioned, pollution free ride and therefore the associated time & price advantage are the main factor behind this alteration in heart.

Today, proximity to metro has become one in all the foremost necessary decisive factors for a property seeker. One can see this impact within the real estate prices, for instance localities like Dilshand Garden, Sastri Nagar, Mansarover, Indralok, Rohini, Pitam Pura, & Rithala wherever the metro has been useful, saw an appreciation of 18% – 40% per annum in capital values from 2008 - mid 2012. These areas were conjointly comparatively unaffected throughout the slowdown from August 2008 forwards. A similar trend is visible in Uttam Nagar, Dwarka, Janakpuri, Tilak Nagar, Vikaspuri, Patel Nagar, Subhash Nagar and Karol Bagh.

With metro extending its wings to Noida, Ghaziabad, Gurgaon, and Faridabad, property seekers would be suggested to stay this at the middle stage of their property buying method. If past data is cipher, the areas within 1 km radius of metro ought to step up upwards of 15% compared to different areas within the neighborhood. This positive impact would be felt in localities on all the metro routes.

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RRTS- Connectivity and Infrastructural Development

Infrastructural Development

Whenever you talk about Delhi, NCR that is the National Capital Region, is automatically associated closely. Also, places like Meerut, Alwar and Panipat are very close to the capital. There are a huge population that travels to the capital for work everyday. It is a daily hectic up and down business for them. 

Now, Daily commuters from satellite towns can look forward to a hassle-free ride into the Capital with the urban development ministry "in-principle" okaying the rail-based Regional Rapid Transit System (RRTS) to provide fast connectivity from places like Meerut, Alwar and Panipat. The integrated system - involving new railway lines, Metros, bus clusters and terminals, provide a smooth travelling experience to lakhs of people who commute to Delhi every day for work.

The hub-and-spoke distribution model or network is a system of connections arranged like a chariot wheel, in which all traffic moves along spokes connected to the hub at the centre. The small number of routes generally leads to more efficient use of resources. As it is a major need of the hour, Faster connectivity will reduce pressure on both the commuters and the infrastructure.
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The long-pending transport system, to be built over the next 25 years, will come up on three corridors - Delhi-Ghaziabad-Meerut, Delhi-Gurgaon-Alwar and Delhi-Sonepat-Panipat. An agreement is signed with Delhi, Rajasthan, Haryana and UP to set up a separate body -- NCR Transport Corporation (NCRTC) -- to improve transport interconnectivity in the NCR. The NCRTC will be responsible for overall development of integrated multi-modal transport system, including rapid rail transit system (suburban rail system) and feeder bus services in the NCR.

In most cities infrastructure development has not kept pace with urbanization and population growth. Infrastructure development drives real estate development in every city. This development specifically gives huge opportunities to the Real estate industry in and around Delhi. Here in this case, growth and development in terms of better connectivity and real estate growth go hand in hand, and therefore lies opportunities for growth and development.

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