Property Buying Tips: Investing in property is a big step for every Indian. In such a situation, you do a thorough investigation before buying any property. Real estate agents and builders can help you in this. But sometimes these people misuse their responsibilities. In such a situation, RERA helps you.
While RERA helps investors, it also controls builders and developers. However, despite this, many builders try to trap people and try to charge more money from the customers who buy their property .
Let us tell you that for this they take recourse to many different charges, in which PLC i.e. Prime Location Charge is very common. Whereas this is completely against the rules set by RERA. RERA has made it clear this time that the price per square foot quoted by the builders should include the full price of the property. Apart from this, builders cannot take any extra charge from the customers. Let us know what kind of extra charge the builders demand from you.
External and internal development charges
Builders also charge extra from investors in the form of these charges. External development charge is called EDC and internal development charge is called IDC. Before the implementation of strict rules of RERA, builders used to charge these charges when the project was half completed or at the time of possession. They demand extra money for infrastructure development in the area of the property’s location. RERA should make some strict rules to stop these extra charges, due to which builders add these extra charges to the property price.
Charges for electrification
If you buy property under a good project, you will get many facilities. This includes footpaths, internal roads, extra lighting and wiring etc. The builder also takes the charge for this from you and most of the time the builder gives information about this at the time of possession. The good thing is that you can avoid these charges and ask the builder to pay for it. However, there is a condition for this, under which it should be written in the builder buyer agreement that you will not pay more than the price decided at the time of booking to the builder.
Parking and club membership charges
Often we see many facilities in the building, in which facilities like club membership or parking are available. There are two types of parking facilities in private builder projects, in which there are options of open and covered parking. For this, you can be charged Rs 1.5 to 5 lakh. Builders also take such charges in the name of club membership.
Late payment penalty clause
Most people use loans to buy property. In home loans, the loan amount is sanctioned according to the construction linked plan of the building under construction. That is, as the work progresses, the bank transfers the amount to the builder. In such a situation, sometimes there is a delay in the bank, due to which the builder imposes late payment penalty on the customers. If this happens 4 or 5 times, then this amount reaches lakhs.