Buying a home is an important milestone in an individual’s life. Buyers usually engage in considerable research before zeroing in on their dream home. With numerous developers in the market, the challenge is more about identifying a builder a buyer can trust. Choosing the wrong builder can pose problems for a buyer, such as delayed possession, legal hassles or substandard construction. Thus, a crucial step in the homebuying journey is to check a developer’s credibility before investing in any project. In this guide, we explain how property buyers can determine the credibility of a developer.
Checking a developer’s experience and track record
A detailed background check on a developer will provide a homebuyer with a lot of information. An experienced developer is seen as more trustworthy than a relatively new entrant in the market. Prospective buyers can go through the builder’s portfolio, including completed and ongoing projects. Here are some things to look for:
- Timely delivery of past projects: Choosing a company with a proven track record of timely project deliveries poses less risk for a buyer.
- Number of completed projects: Buyers can check the history of successful projects completed by the developer to ascertain their credibility.
- Customer reviews and ratings: Checking reviews and ratings by previous buyers, websites like RERA, consumer forums, real estate portals and social media platforms can give a clear picture of the developer’s trustworthiness.
- Awards, certifications and recognitions: This is an indication of the developer’s strong credibility in the industry, and a buyer can opt for the project without any worry.
Visiting project sites
Undertaking visits to project sites, including upcoming projects and past completed projects, can give prospective buyers a clear image of a builder’s credibility and commitment to quality standards. Site visits help buyers check the construction progress, assess the quality of materials used for construction, and identify defects or drawbacks in the project. It will also enable them to assess the neighbourhood in terms of connectivity, amenities, etc. and make an informed decision.
See also: Importance of site visit while buying a house
Verifying legal approvals and compliance
Legal compliance is a key requirement for a real estate developer. A builders’ reputation is determined by whether the company has obtained the necessary legal clearances before starting a project. These include land ownership and title clearance, approvals from local authorities and environmental clearances. During this stage, prospective buyers must check if the developer has obtained RERA registration and important documents such as approved building plans and No Objection Certificates (NOCs). Adherence to legal requirements and transparency by the developer in terms of documentation is a good sign for buyers looking to invest in a project.
Ascertaining developer’s financial stability and partnerships
Before buying a property, potential buyers must ensure to do a background check of the developer’s financial health. Buyers can look for media reports and company reports to gather additional information. Financial stability can be gauged by the following signs:
- Clear track record with no loan default in the past
- Track record of sustaining long-term projects and successful completion
- Tie-ups of the developer with reputable financial institutions for home loans
Involvement of credible partners is a sign of the developer’s credibility. This also includes tie-ups with renowned architects, contractors and consultants and membership in CREDAI or similar industry bodies.
Checking for legal disputes and pending cases
The introduction of the Real Estate Regulation Act (RERA) has significantly contributed towards streamlining the sector. The RERA has been established to protect the interests of homebuyers while keeping a strict check on erring developers. However, if there is a pending legal case or case of fraud against a builder, it is crucial to stay away from investing in the project. Prospective buyers can look for news portals to get information on any ongoing legal disputes against the developer. They can also refer to RERA websites, government portals and other legal databases. Legal issues may include land acquisition disputes, issues related to regulatory clearances, etc. These can delay the projects and cause difficulties for potential buyers. If the legal records of a developer are clean, it is safe for the buyer to invest in the project as it poses minimal risk for their investment.
Transparency in sharing information
In the past, many developers have tricked buyers into finalising property deals through misleading advertisements or hidden charges. This has changed with the implementation of RERA. It is mandatory for developers to share project-related information with potential buyers. These include RERA registration number, project’s timelines, layouts, specifications, location, features, etc. Details related to common areas, exclusive spaces and any restrictions on their use should be clearly communicated. Moreover, any ongoing litigation related to the project should be disclosed. Homebuyers must ensure they verify these details before going ahead with the project.
Reviewing customer service and post-sale support
Homebuyers may face issues arise post-handover of the property. It is crucial for developers to have a transparent mode of communication with buyers. Some key aspects to check include after-sales support, services pertaining to warranty claims, rectification of defects, etc.
Lack of prompt and efficient customer service can repel a lot of buyers. A dedicated customer support team can be the backbone for a successful developer and an indication of the company’s commitment to customer satisfaction. Responsiveness in addressing queries can significantly enhance buyer experience and boost the builder’s reputation through word-of-mouth feedback. Prospective buyers can review feedback from past buyers who invested in the project.
Housing.com News Viewpoint
Homebuyers need to conduct proper due diligence involving ascertaining a developer’s credibility. This will save them from unwanted stress and get a fair property deal in the desired project. Finalising a real estate developer for a property investment is much more than just a few site visits and checking property brochures. Rather, it requires thorough research on a developer’s track record, financial health, legal compliance and reputation in the market.
FAQs
How to check if a developer is RERA-registered?
Buyers can visit the state RERA website and search for the developer’s name or project name. They can check registration details, approvals and compliance status to ascertain the developer’s credibility.
Can a builder modify project plan after RERA registration?
No. As per RERA regulations, a builder cannot make significant changes to a project plan without getting a written consent from buyers.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
