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How To Do A Thorough Background Check Of A Builder?



How To Do A Thorough Background Check Of A Builder?

In order to avoid any hassle or fraudulent experience, it is best for homebuyers to find out as much information about a builder before taking the big step of buying a home

India’s real estate industry has both big and small players. In recent times, some of the biggest names like Unitech Group and Amrapali Group have come under fire for duping their customers. Many small builders have been known to abandon projects or not fulfil the promises they make at the time of booking.

As countless hassled homebuyers are currently battling it out in court against dubious builders, they are left with uncertain futures regarding the status of their homes.

Buying a home is no small feat. The price tags of residences have shot up in all the major cities. Most homebuyers go through a lot of struggle before they can finally even think of buying a home. The safest way to avoid such a situation is finding out as much information as you can about the builder.

RealtyNXT lists ways in which one can conduct a thorough background check of builders/developers.

1. Check out their previous projects

Every completed project by a builder acts like his/her report card. The more you will find out about the previous projects (especially the more recent one) completed by the builder, the easier it will be for you to access whether this builder is worthy of your choice or not.

Visit a few of the builder’s completed projects and if possible talk to the residents. Ask them about their experiences with the builder and whether the promises made were fulfiled or not. Also, make sure to talk about the quality of the construction and amenities provided.

While this may seem like a tedious task, it will act as the biggest source of your information gathering. No one knows a builder better than the ones who have already dealt with him/her.

2. See if they are members of prominent builder associations

Every professional builder these days is a member of well-known groups like Confederation of Real Estate Developers Association of India (CREDAI), National Real Estate Development Council (NAREDCO) and Builders Association of India (BAI).

While these groups do not guarantee the final result of any project, they do have certain rules that need to be followed. If members don’t adhere to those rules, they are blacklisted.

As a homebuyer, you will obviously not want to buy an apartment from builders whom other builders have disapproved.

3. Find out if your bank approves of them

These are times when buying a home without getting a home loan from a bank is impossible. Each builder undergoes a detailed background check before making it to the list of a bank for loan approvals of their projects.

Only builders who follow ethical business practices and have their finances sorted are approved by banks. Talk to your bank’s manager and ask for a list of builders greenlighted by your bank. This factor will play a crucial role in the deciding factor and your peace of mind.

4. Check out their reviews, ratings and social media pages

The Internet is literally the biggest hub to find out information on people and their organisations. Check out realty portals like Magicbricks, 99acres, Makaan, Proptiger. They have dedicated discussion forums where users share their thoughts and experiences about the builders and their projects. They even rate the projects according to their liking.

While it is difficult to please everyone and most builders will have that occasional negative review, keep an eye out for back-to-back bad reviews. If there is scarce information of the builder available online and they do not have an updated website, social media presence, the ideal thing to do would be to not invest in the project no matter how tempting it may seem.

5. See if the builder has registered his recent projects under RERA

This one should be a dead give away. With the advent of Real Estate {Regulation and Development} Act (RERA), it is mandatory for builders to register their projects under the housing regulatory authority.

If the builder you are keen to purchase your dream home from has not registered his recent projects with RERA do not trust this builder. Also, find out if the builder has a history of being fined or penalised by RERA officials.

Lastly, see what kind of reports are out there about the builders. Dubious builders are reported diligently by every newspaper. These guidelines will help you do a proper background check of builders.

ALSO READ: Mistakes To Avoid While Investing In Commercial Real Estate

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