Wednesday, 19 August 2015


Every person desires to have a house of his/her own according to his or her financial position. It is the emotional bondage towards the house that over weighs than the concrete structure of the house. Normally, a person invests money to acquire immovable property either once or twice. Therefore, the purchaser has to put forth a lot of efforts to get the immovable property with good, clear and marketable title. When once a property in a good locality with marketable title is purchased, he can live peacefully and comfortably in the said property.

It is not easy either to buy a new house/apartment or to construct a house. A person intending to purchase an immovable property either for his occupation or for investment purpose, has to look into various aspects involved in the purchase of an immovable property. If the desire of a person is to buy an apartment, then it is necessary to identify the right location and a reputed builder and if the desire is to construct a house, then a reliable and competent person to undertake the construction work is very necessary.

Selection of location

Before acquiring any property, more impetus should be on the location since it plays a paramount role in almost all aspects of the real estate. However, the process of identifying the location for owning any property depends upon the purpose for which such person intends to invest, which could be either for residential or commercial, since the priorities differ according to the purpose for which the property is intended to be purchased. Selecting a property situated at a convenient and suitable location will result in appreciation of its value and this in turn satisfies you, for having invested in a profitable property.

The location of the property depends upon the purpose for which the property is purchased. In case the property is purchased for self-occupation, a residential locality not far away from the heart of the city is preferable and in case the property is purchased for commer­cial purpose, it is very important that the property is to be situated in a place which is easily accessible to the public. One should not yield to the pressure created for purchasing a property at a cheaper price. Instead, one should ensure proper verification and examination of documents with extraordinary care. It is advisable to select properties situated in the layouts approved by the competent authorities, which, in turn would enable you to avail all the facilities within the layout. It is also important that the area should have basic facilities and civic amenities to ensure better enjoyment of the property. The infrastructure facilities should be good in all respects. That apart, the size of the plot to suit your pocket and the permitted FAR (Floor Area Ratio) are necessarily to be considered.

The first and foremost thing that should be kept in mind at the time of identifying the property is that the property intended to be purchased should not be located within the close vicinity of a slum area or place of worship or of a drainage line.

• Generally, persons prefer to spend more time in their residences for rest, sleep and family interactions after they return from work. The location for residence should be free from air pollution and noise pollution. Good environments including natural light and good ventilation will be an added advantage from the health point of view. Added to this, an area inhabited by decent, educated and cultured people would be a gifted advantage.

• Civic amenities like park, school, police station, temples, community hall, hospitals, auditorium, should be available in the locality. Better road facilities will save more time to reach the place of work in time, though the location of the residence is little away. Apart from the above, it is also necessary that banking facility, ATMs, public conveyance, public telephone booths, Internet Centers and others are available within the vicinity of the property.

• Availability of water supply, power supply, ground water and sanitary line should be ensured and in case of bore-wells, then good ground water table is also necessary.

It is always good to purchase an apartment built in a layout approved by the competent authority, since it would ensure better amenities to occupants. The location must also be free of any kind of pollution or congestion. If the person wants to own a house or a flat for self occupation, it is advisable to prefer a purely residential area than a commercial one. It is also important that such layout should also comprise of well-laid roads with good sewerage system, along with regular garbage clearance. Care should also be taken to ensure that the location is not very far from the Work Place, Market Place, Educational Institutions, Hospitals, Bus Stand, Railway Station or other basic and important destinations.

For maintaining good health, it is necessary to inculcate the habit of jogging or walking regularly, for which Public Parks or Gardens with jogging track is necessary. Therefore, it is preferable to own a house or a flat wherein such parks or gardens are easily accessible. One thing that always concerns everyone is the parking of vehicle and other logistic issues, which we should ascertain before purchase.

Now, coming to the people residing in the vicinity, emphasis should be on an area inhabited by decent, educated and cultured people with a cosmopolitan outlook, which plays a major role in the personality develop­ment of an individual. One has to ensure that the area is not housed with anti­social elements who create social disharmony. In order to avoid noise pollution, it is necessary to verify whether any factory or workshop especially, the ones which work in night-shifts are situated in the immediate neighborhood. To ensure good sleep and less pollution, pick up an area, which is free from any factory or workshop (especially night working) in the precincts of your location. Further, the property located close to highways or heavy traffic areas are better avoided.

Value of the Property

Another important factor to be considered at the time of choosing a property is regarding the resale value. This naturally depends upon the location again. A developing area is preferable than a developed area, since the market value in the developing area is compara­tively low and value appreciation is more.

Non-availability of parking space and traffic congestion will have a negative impact on the value of the property. Accessibility to the rail­way/bus stations, airport, star hotels and availability of infrastructural facilities play an important role. The residential area should not be located on the main roads, highways, heavy traffic flow. It should not be near the area of high tension wire. It should be preferably away from the railway line to avoid noise, away from burial ground or cremation center. Besides, the location should not be in any low lying area to avoid water logging and inundation of water in case of torrential rains etc. Also, it should be away from lakes, water tanks, main drains and sewage water storing areas. The land should not be filled up with clay soil and not prone to land-sliding.

Vaastu Aspects

The concept of Vaastu plays an emotional role and solely depends upon the individual's belief and preference. Belief in Vaastu concept varies from person to person. It is seen that the concept of Vaastu has gained much momentum now a days. It is better to select an immovable property conform­ing to the Vaastu shastra which may yield good value upon resale. Equally important is the selection of a rectangle or square site and direction wise, it is better to select North and East, as generally people do so. It is suggested that instead of banking upon the Vaastu alone importance may be given to the size of the plot and the Floor Area Ratio along with the price tag.

Financial aspects

The property scene is similar to that of speculative industry; prices can either appreciate or depreciate, though the latter is rare. In fact, it is the difference in the amount of gain in value and the time taken to achieve such appreciation in value which is important. Slow and poor appreciation in value would be almost equal to depreciation while fast and large appreciation can give benefits like any other investment and that too without any effort on the part of the investor. A thorough study of title, location, develop­ments already in the area, the expected development in the area, other facilities already in place and surrounding places and a careful analysis of these factors before purchase can ensure great benefits and greater peace and prosperity to the purchaser.

In the sky-rocketing real estate price both in urban and suburban areas and mushroom growth of apartment culture in and around cities which are being sold at exorbitant price, nowa­days, a person may not be able to purchase a good property at a reasonable rate. It is always advisable to select a property to suit his budget, otherwise he will face a lot of problems and the income will go to repayment of the principal and the interest only. Nowadays, Bank finance/loan is easily available for long term i.e., 15 to 20 years subject to fulfilling their terms and conditions. Instead of purchasing 30 x 40' sitewith Ground + 2 upper floors, a person can purchase 60 ' x 40' site and construct only ground floor with further provisions to construct additional floors suiting to their requirement and budget at later stage.

Instead of purchasing an immov­able property in an isolated area, it is better to select it in an area having good road facility and public transport system which would be convenient for up and down traveling to work spot and back home and also helpful for the school going children. If you purchase a property in an isolated area, you are likely to encounter a lot of unforeseen problems.

Choosing a vendor

Conveyance of marketable title in favour of the intending purchaser is also one of the pivotal requirements which decide title of the purchaser over the property. Thus, while selecting a vendor/promoter, you need to undergo thorough investigation about the history of the Vendor or the Promoter and the title over the property. This can be done by scrutinising and verifying origin to trace the title, flow of title and the present status. In the case of Promoter, apart from the above, enquiry should also be made about the earlier projects undertaken by him.

Credibility of the vendor

Presently, the Real Estate is booming due to various factors viz. IT Boom, High salaried people, soaring share prices and the easy availability wide range of home loans. The Builders/promoters are having a field day, as the demand for properties is mounting. That being the situation, it is very important to opt for the purchase of a flat/apartment constructed by reputed Builders, because some builders, having no experience in the field of construction may take undue advantage of the mounting demand and may cause damage to the intending purchasers by making false assurance, with poor result and high prices. We hear a lot of stories about such bogus builders, whose motto is to cheat the people, collect the money and disappear with such money. At the outset, before making any kind of investment either in apartments or plots or in any type of property, it is very necessary to obtain the list of reputed builders who are involved in the real estate business from quite few years. Once such list is available, then it is necessary to make a thorough investiga­tion about the antecedents of the short listed builders. Invest your hard earned money in projects promoted by renowned developers having proven track record. Do not believe the words in the advertisement 'Financial Institutions approved Projects' 

Track record of the vendor

Purchasing a property is time-consuming process involving various factors discussed above. Do not simply believe in a Developer's project presented in a colorful brochure with glossy photographs and pictures with a lot of promises to be undertaken. It is advisable that before investing your money in flats or in an independent house property, choose a well known builder/developer/promoter and in cases where vendor is an individual, ascertain genuineness of the owner­ship. Thoroughly check up the track record of the developers and verify successful completion of their earlier projects. Investing in an independent house or flat built by any unknown builder is always a risky act. Before booking a flat, it is necessary to verify the track record of the builder for prompt delivery, construction standards, adhering to the agreed cost without escalation, providing basic amenities. Ensure that the construction is carried out in compliance with the municipal laws without any deviations from the approved plan and also check the post sales service.

It is advisable to try and meet the residents residing in the apartments constructed by such Builder.

If an offer to sell a flat/apartment is made for the price which is much lower than the prices prevailing in the market, then it is advisable to think it over than being carried away by the throw away price offer as such purchases may encounter some unknown problems.

The next important aspect after finalizing the builder from whom the property is intended to be purchased, other aspects such as promptness in delivery, construction standards, strict adherence to the agreed costs without any escalation, providing all the basic amenities as promised at the time of booking are important.

Any document substantiating the claims of having obtained BDA's no objection certificate or approval from the competent authority should be considered only after verification of the genuineness of such documents.

Legal aspects

Buying a property with unclear title is like 'paying the money and buying headache'. Generally, owner of property with unclear title, either himself or through his agents/brokers offer the property at cheap rate and pester upon the prospective purchaser to buy his property at short notice. It is not advisable to purchase any property in an hurried manner. It is always better to subject all the documents to rigorous scrutiny, verification and seeking expert's opinion to ensure marketable title of the immovable property. In the process, proper and reasonable time need to be given for legal scrutiny and opinion. Upon such advice by Advocates, further efforts should be made to verify various records in the concerned Government Departments

The origin of property, continuous flow of the title and present status of the property should be thor­oughly checked. Services of an Advocate who is having specialized knowl­edge and practical experience in the property matters should be utlised. It is advisable to check up history of the property at least for the past 50 years. It is also important to find out existence of minor claims, court litigations, Government acquisition proceeding, Zonal regulations and other subsisting charges on the property.

Before entering into an agreement, the purchaser has to verify all the original documents pertaining to the title deed personally to make sure that immovable property is free from mortgage by deposit of title deeds and other charges created thereon. The deposit of title deed will not be reflected in the Encumbrance certificate.

The purchaser should act according to the advice given by an experienced Advocate. If an Advocate insists on issue of Paper notification in a leading local News paper, the purchaser can do so. However, the Paper notifica­tion cannot guarantee any title over the property. If anyone has any objection to the sale transaction, such claims or objections will come to light before sale transaction which may render a great help in taking further decisions. It is the duty of the vendor of a property to settle such claims or objections if any before sale.

Further, a purchaser should make discrete inquiries and verify from the inhabitants of that location and also neighbours about ownership of the property to be purchased. Apart from verification of the main title deeds, scrutiny and verification of the support­ing documents like revenue records and other sanctioned plan/licenses etc., would help in ascertaining title of the property.

As far as residential property is concerned, it is safe to invest in those projects which are completed rather than those which are still under-construction.

For those who intend to invest on the property other than residential, for getting steady rental incomes, invest­ment on the ready to occupy properties may be a wise choice. Also, the possibil­ity of capital appreciation would be very great as ready possession property attracts premium market rates. Thus, purchasing an immovable property free from any kind of impedi­ments is a time-consuming affair and it requires selection and involvement of professionals such as Advocate, Architect, Structural Civil Engineers, Contractors and Real Estate Agents.

Tips in brief
1. Scrutinise the documents with an experienced Advocate. Ensure that the documents of title of the property you intend to purchase are clear. Defective title will create problems at any point of time.
2. Always go for a property, which has a resale value.
3. Ensure that the building has been constructed as per the sanctioned plan and if there are deviations they should be within the permissible limit. The property should not be in a low-lying area.
4. You may always rope in the services of a reputed real estate agent and fix his commission well in advance.
5. Purchase the property in a developing area. The value of land will appreciate.
6. If you prefer a ready-to-occupy flat, select a flat which is off the main road on a wide street with adequate water supply, away from cinema hall, marriage hall, open drain, factories and place of worship but not very far from school, college, commercial complex, temple and hospital.
8. You may not be a Vaastu believer, but purchase House or Flat or land that is Vaastu-friendly from resale point of view.
9. If anyone offers flats/sites at a cheaper rate than the prevailing market rate, there may be certain hidden problems. So you should be extra careful in finalising the deal of such a property.
10. Ensure that the developer has Clearance Certificates from government departments, viz., Electricity Board, Water and Sewerage Board, etc..
11. Commencement Certificate and Occupancy Certificate are other important documents that are necessary while buying the flats.
12. Check up the genuineness of the documents with the concerned authorities in person.
13. Ensure Agreement for Sale and Sale Deed, duly stamped, executed and registered are in your possession. Both should contain fair clauses for both the parties.
14. In case of flat purchase, specification of the building, including material used, difference between the carpet area and the super built-up area are the important factors to decide the rate. Other facilities like Club House, Swimming Pool etc., will also have to be considered.
15. Check up whether there is adequate water supply and sanitary line facility.
16. In case of GPA transaction ensure the validity of GPA.


  1. Mahidhara Fortune City’ project in Bangalore. This project comprises of over 200 housing units and is equipped with the latest ultra-modern amenities like Club House, Sports Zone, Swimming Pool, Library and Spa.
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  2. What you say is so very true. When inspecting any property for purchase, it is very important to check all amenities including the plumbing. When we were in the process of buying our home, we asked a local plumbing service to inspect the general plumbing in the property. No faults are found, but it gave us peace of mind.

    Lovella Cushman @ Perfection Plumbing