Buying a home is not only the biggest investment for any home buyer but also is the most cherished dream for them. But there comes an unpleasant blow when buyers don’t get their possession on time.
This delay in possession affects both the sides of the business likewise. Here is a thorough analysis on the story apart from the most visible side of the highly talked about and a genuinely sensitive concern of the real estate. Here are few points which would open the story from the developer’s point of view as well. Alongside, there are a certain major investigations which as a buyer should be your homework prior to handing over your life’s savings to just anyone.
Delay in Possession: Developers speak up why?
1) No Approval received from the authority
If the developer has not started the construction, it may be possible he has not obtained the construction permit or approval from the authorities. Or it might happen so that the contractor had really received all building approvals and finished the construction, but he does not have the tenancy certification (OC) and completion certification (CC) from the regional community bodies.
2) Dispute and litigation going on the land /property
The property may be under some litigation or conflict due to which the structure cannot get started or has stopped. It may also be stopped due to some government policies or land reform bill.
3) Financial Crisis
Developers might run into a financial crisis or the bank has refused to approve funding for that particular project. This crisis may also occur because of the recession in the economy.
4) Labor or material Scarcity
Another important factor for delay in possession is the scarcity of labor and material in certain season or region which is not under the control of developers. However, such delay is for short time but it really affects both the developer and home buyers.
5) Natural Calamities
Natural calamities or man made disasters like earthquake & flood, political instability, terrorist attack, riots, and so on are also believed as one of the most important factors for delay in the possession. However, such situations are not in the control of the homebuyer and the developers.
Though obstacles are many, there are also measures to stay at bay from such situations at all. Here are a couple of preventive measures that would help you refrain yourselves from such tough situations.
6) Do your own background Research
Before investing try to do lots of study and research about the developers present and past history and also try to find about their client’s review and feedback. Further, search for their blogs, online reviews, and resident group, opinion online to examine this. If possible talk with other buyers too.
7) Keep a track on the Development
Keeping a track on the development of the construction helps you in being ensured about your investment and the actual development and status of your payments to the developers. It is not worth to release the payments before or without inspecting the growth just because a bank is paying the amount.
8) Go thoroughly through the Sale Contract
Before signing any deed or contract to invest your lifetime hard cash into a property do read the entire necessary document and the clause involved in the deed. Because many times it happens that many developer /contractor will aim to impose only such provisions that are favorable to him so go and read the clause in depth.
The buyers no doubt face a problem because he has to pay the rent and the EMI at the same time. Consequently, he is one who suffers a pain after paying his hard cash.
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