Are You Paying Extra Charges For Your Home?

There are many things that add to the risk of a real estate investment. The worst of the lot is when you have to pay extra charges for your property in India. The investment made in a property is substantial and once the payment is made, you may discover that you have still incurred extra charges to be paid later. It happens and specific instances of this have been oft-reported. 

Recently, a builder in Noida tried to pass on increased costs to the investors after the plot of land that he used for erecting the property became pricier. A court case was filed and the builder was directed to pay the farmers the land was acquired from.

One thing to remember from this example is that law is on the side of the home buyers and investors. Many real estate companies have been caught on the wrong foot trying to do this and have lost. However, such experiences can be particularly stressful if they spring up right at the time of possession of property and can even lead to expensive legal complications.

Here is what you should do to make sure this doesn't happen to you:

1. Check the agreement: In order to be on the right side of the law, ensure that you read the agreement carefully. Before you buy an apartment, make sure that there are no loopholes left in the legal papers, wherein extra charges or increase in construction cost or any other variable in the builder's balance sheet can be passed on to you. If the builder insists on leaving one such passage open or if you spot any vague clauses, make sure that the developer defines exactly what you would have to make an extra payment for. If the developer refuses to do that, do not hesitate from walking away from the deal.

2. Form a society: Even when the law is on your side, it is tough to fight for property. Court cases can last long and can be emotionally and financially draining. To counter any adversities that might happen in this regard, ensure that you are strong enough to fight. That can be done by forming a lobby of many investors or home buyers in the same tower. Extra charges generally get levied on a number of home buyers and investors like you, so you can bring all of them together to build a strong case. After possession too, an independent society of residents must be formed for such eventualities in future.

3. Other legal complications: Cases are also being fought over extra charges levied right before possession. It is wise for you to pay the originally sought extra charges and take possession of the property before taking the developer to court. There is no point in delaying possession over a squabble. 

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)