Builder-Buyer Agreements Need More Clarity, Says Delhi-based Home Buyer
Sandeep Choudhary, a chemical engineer by profession and an alumnus of NIT Durgapur, recently tied the knot with his love interest, Neha. Choudhary, who is originally from Indore, Madhya Pradesh, shifted to Delhi and since dreamt of having his own home in the national capital region. Two years ago, Choudhary found his dream home in Greater Noida. In an interview with Srinibas Rout, Choudhary says more clarity in builder-buyer agreements would be beneficial for common home buyers. Edited excerpts.
Q. Tell us about your new home.
Choudhary: I have booked a 2BHK flat in a high-rise residential project in Sector 1, Greater Noida-West. Spread across 1,160 sq ft, my flat is on the 17th floor. The project has nine towers in its campus that is spread across six acre. The Metro network is spreading in the areas, and by the time I get my possession, my location will be connected to all the important destinations via metro.
Q. How did you zero down on this property?
Choudhary: I came to know about this project through a real estate property expo that was held in Noida Sector 62 two years back. I got in touch with the developers, discussed project details and was impressed. However, the factor that made me invest in this property was the rate. In area such as Noida Sector 120, prevalent property prices are go as high as Rs 5,000-6,000 sq ft, while in Greater Noida, it may be as low as Rs 3,000. The distances between the localities is less than five km. The area is also high on green quotient, which keeps you close to nature.
Q. How much money did you spend on it? How did you fund the purchase?
Choudhary: My home cost me around Rs 40 lakh. After registration charges, the amount may go up by Rs 2 lakh more. Apart from using my personal savings, I also took a home loan to fund the purchase. However, as I'm yet to get the possession, I will have to bear the burden of both EMI instalments and house rent.
Q. How was your buying experience?
Choudhary: I would say it was a smooth affair for me when I compare it with some of my friends, who faced problems while buying homes. In India, terms and conditions are generally tilted towards developers and buyers have to be careful during the purchase process. For example, in many cases the delivery of homes is not on time and even if the developer gives some compensation for the delay these are most likely not linked with inflation, in which case the consumer stands in the losing side. So, the agreement should have more clarity and accountability for both the parties. I hope the government will address the issues of both the consumer and developers judiciously through the new Real Estate Bill.
Q. What are your suggestions to new home buyers?
Choudhary: While buying a flat, contact the developer directly. This will give you a clear idea about project details. If you have enough funds, opting for a ready-to-move-in property is better idea. And, most importantly, talk to people with a good understanding of the real estate market to take valuable suggestions.