NRI buyers: Be doubly cautious

Dec 01 2012, 10:32 IST
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There are several unsuspecting NRIs who have been promised the skies but reality turns bitter. There are several unsuspecting NRIs who have been promised the skies but reality turns bitter.
SummaryThere are several unsuspecting NRIs who have been promised the skies but reality turns bitter.

history of transaction on the property.

* Encumbrance Certificate.

* No Due Certificate from bank if property was mortgaged.

* Approval of layout of the project.

* Intimation of disapproval by local civic authority (valid for one year only).

* Building Use Permission from local municipality consisting of:

NOC from department of fire services, power load sanction from the local electricity board, permission for drainage and sewerage connections, permission for water supply, approval from pollution control board, permission from the public health authorities.

NRI buyers must stay clear of the arbitration clause in the agreement drafted by the developer. They should not agree to the arbitration clause in terms of conditions relating place or arbitrators. If required the buyer should insist on a sole arbitrator who is acceptable to both parties.

Before taking possession

Before taking possession, do verify the following documents:

* Completion certificate issued by the local municipal authority indicating compliance and suitability for occupation.

* Possession certificate from local municipal authority indicating completion and functioning of water, sewage and electrical connections.

* Society papers and bye-laws for maintenance of the project by the registered owners.

Marketing campaigns and smooth talk by sales executives should not be the criteria for decision on property investment in India. In order to avoid being in a frustrating realty situation, the NRIs need to cross check the developer’s reputation and the prevailing prices at the locality through government agencies, NRI forums, friends and acquaintances before entering into any property deal from abroad.

— The author is CEO, BankBazaar.com

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