The apartment culture is of recent origin and has become very popular. This type of
group housing is not alien to the human culture. Earlier people used to live on riverbanks in
groups sharing common facilities.
In the
early twentieth century it was known for such group housing but in a different
manner. Group housing popularly known as “Vatara” was very common where small
dwelling units were constructed in a single compound and families lived in
perfect harmony and unison. The Vatara, used to be horizontal or L shaped with
single storey buildings whereas the apartments are vertical with multi-storied
buildings.
In
Bangalore, in the early seventies, the first Apartment constructed was Shalimar
Apartment. In the early eighties Apartment culture began to show its presence
in Malleshwaram. Apartment Culture is rapidly picking up.
Flats have certain advantages when compared to Independent Houses. Community living offers Security and certain amenities and facilities,
which an individual cannot afford and which can be shared with other Occupants
as common facilities at minimal cost. Facilities like gym, recreational center,
swimming pool, sauna; Jacuzzi, full-fledged security, clubhouses, sports and
games come at nominal cost. Generally Apartments have Owners Residents Association, which attend to the problems of the Residents and carryout
repairs.
The Purchaser of a flat need not worry about issues
like obtaining plan sanctions, finding a Contractor, supervising the
construction, getting water, power, sanitary connection and other related
formalities, which the Developer takes care. Purchaser may have the interior
done according to his needs on payment of some additional fee.
With respect to sanctioning of plans, various
approving Authorities have powers with some restrictions. The Village Panchayat
cannot approve a plan of a multistoried building; High Rise Building Complex or
a Building more than 8000 sq.ft of land and any building plan exceeding the
prescribed height have to be approved by Town Planning Authority. It must be
kept in mind that any massive violation of the sanction plan will face the
threat of demolition of the building at the future date.
It is also necessary to ascertain whether the
building has complied with the Floor Area Ratio (FAR), i.e., total built up
area permitted on the plot with prescribed setbacks vacant space that is to be left around the
building.
Financial Institutions are currently offering
long-term loans at a very low interest rate. Housing finance companies and
banks also prefer financing the flats as multiple beneficiaries live in a
single compound and it would be easy for them to follow up and they need not
spend much on legal formalities.
Any high rise structure should have clearance from
BWSSB, BESCOM, Fire force, Telephone Department, Pollution Control Board and
also from the Airport Authority of India.
No doubt, there are certain disadvantages
also. Most important is the lack of
privacy which is available in independent houses where the resident is the king
of the house and has unlimited freedom. The Owner of a flat cannot have
additional construction and alteration. Even in order to repair a leak on the ceiling one has to obtain
permission of the Association and the person living on the upper floor. Whereas, in the case of an independent house,
the Owner may add additional construction as per his requirements and let out
the same to supplement his income without any hindrance.
Generally local people prefer independent houses.
The resale value of flats is less, since the building gets depreciated and
demolishing a flat and reconstructing it is also not possible. In case of
independent house, though the building gets depreciated, the land value
appreciates. If necessary the old building may be demolished for new construction. Then the resale value of an independent house is always more.
Flat Owners have to pay monthly maintenance charges, which at times will be
equal to or quarter or half the value of rents paid to a house, depending upon
the amenities provided.
The Purchaser of a flat has to take into account
the location of the flat, its proximity to civic amenities and also select the
Builder according to his track record. It is always advisable to visit some of
the projects completed by the builder before booking a flat.
Verification of the title of the property is one of
the important aspects of purchase of property. Though the Builder provides
Legal Certificate from their Advocate, the Purchaser should always
independently get the title verified by his own Advocate. Only Advocates with a
minimum of 7 years of experience are eligible to issue legal opinion for the
apartment to the Developer as per the Karnataka Apartment Act.
If the property is sold by a General Power of Attorney
(GPA) holder, verify the terms of GPA and whether the Owner who has given the
GPA is surviving or not, should also be checked.
Validity of the GPA, Joint Venture and other Title
deeds are most important factors that should be kept in mind. Agreement with
the Developer should contain the Ownership details, sale price, payment
schedule, Specifications of the construction, car parking details, undivided
share of land, common amenities, Penalty clause for both parties, what are the
other deposit charges to be deposited, Registration charges, whether Sales Tax
is applicable or not, any other expenses etc., should be mentioned in the Agreement. Further, it must also contain the layout plan, sketch of your
portion of the apartment, with specifications, date of commencement of
construction work, date of handing over of the apartment, penalty for delayed
construction and payment defaults, no escalation clause, guarantee for the
quality of construction and construction materials used.
After completion of the apartment construction the
Sale Deed should be executed by the Vendor of the land and the Promoters
jointly as per the understanding. The Sale Deed must also mention the duties
and responsibilities of the Buyer and the Seller, the Purchaser has to pay the
required Stamp Duty and complete the Registration formalities. Registered Sale
Deed is the main document that confers on you the Ownership of the flat. On the
basis of the Sale Deed the Revenue Authority issues documents of title like the
Khatha Certificate, Khatha Extract and Tax paid receipts.
Price of a flat is determined, based on the various
factors like location, specification of the work, carpet area and percentage of
Super Built up Area.
When you purchase an apartment you are entitled to
an undivided share in the total land area. The undivided share depends upon the
built up area of the apartment and the land area. As the total built up area
increases the undivided share decreases and vice versa.
Purchase of the flat by Share Certificate Method is
very popular in Maharashtra. A
Registered Cooperation Society acquires land, constructs flats which are
allotted to its members; whereas in Karnataka, the Share Certificate Method is
not accepted by General Public, Financial Institutions, State Government, etc.
Karnataka Government is of the view that individual flats should be Registered
by regular conveyance. When tracing the
title of this type of Share Certificate Method, verification of the Society
Record, its Byelaws and Share Certificates is very important.
You must also know what certain areas are called
with reference to a building. From the Floor Area Ratio and Site Area, we can work
out the Total Constructed Area. Plinth Area is the total area of construction.
This includes all the floors as well as the wall thickness. Carpet Area is the
area inside the constructed building between the walls and the area actually
usable. Super Built up Area is the saleable area generally applicable to
apartments. This includes the wall thickness, projected common areas and the
set back area. Some Promoters will adopt
certain methods to arrive at more Super Built up Area to reduce the sale
price. The Purchaser should be very
cautious about the Super Built up Area, on which the price of flat isdetermined. Super Built up Area consists of actual flat area plus proportionate
area of common areas like staircase cum verandah, balcony and other common
areas etc. Carpet Area is the area available for actual residing. Generally
super built up area should not be more than 25% of the carpet area.
After the construction and handing over of flats,
the Owners of apartments form an Association to take care of the needs of the Residents
and to upkeep of the common areas. The Builder must hand over detailed drawings
of electrical wiring, piping and drainage system to the Association. The Builder
must also hand over to the Association all the Original Documents of Title and
Sale Deed including plan, drawings etc., as without proper drawings, it would
be difficult for the Association to maintain the apartment building.
The building should have lift facility. One has to
examine the provision for water supply and sanitary connection. In many cases,
though bore wells are drilled, the yield is much less. So the Residents have to
purchase water from Outside Agencies at Exorbitant Costs.
The apartment must strictly adhere to the building byelaws. It must comply with all Rules and Regulations laid down by the Pollution
Control Board, Corporation or Municipality, Housing Development Board and other
Authorities. Violation of laws will create great problems for the Occupants of
the apartment block.
At the time of commencement, the Builder should
obtain Work Commencement Certificate and Occupation Certificate, at the end of
the completion of construction, from the Authority which sanctioned the plan.
These are
the general important points one should look into before purchasing a flat.
Right choice of the Builder is very important. Do not go by glossy
advertisements and tall claims. There are many reputed Builders in the field
with impressive track records. Choose one of the good Developers to satisfy
your needs.
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