NEW DELHI: With Indian real estate sector reeling under the pressure of delayed and stalled housing projects, it has become imminent for home buyers to check their financial health to avoid any uncertainty regarding its completion.
“It is very important for a buyer to check the financial health of a project to avoid risks later. Find out the company which is constructing the project, as the builder may have multiple projects being built by different companies. Once you know the company name you can search online and dig out information to have a basic understanding about that company,” says Sanjeev Chandiramani, national director (Capital Markets) & head west (Corporate Finance), Knight Frank India.
If you want to find out whether the property is mortgaged with any bank or housing finance company, you can check the website of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). This was incorporated by the department of financial services under the ministry of finance that maintains records of all properties against which loans have been sanctioned.
“Buyers can verify the documents submitted by a company with the Ministry of Corporate Affairs. These documents are publicly available on the website of MCA. Apart from that RERA portals also have details related to financing to a particular project which can be checked by a buyer. The third is, a buyer can do an online search and find information publicly available which buyers can find useful,” says Abhilash Pillai, partner, Cyril Amarchand Mangaldas.
RERA portals also give complete details related to a real estate project, builder, agent, project plan, properties, contractor name, architect name, structural engineer, development work, project bank details, land/plot details, document uploaded by the developer and quarterly report. You can check these details online and access this information through RERA authorities to assess the current status of the project you are buying in.
Chandiramani says, “Check the property title with the help of a local lawyer. He can also check the land records as buyers are normally unable to do so. A buyer must do a complete online and offline due diligence to find whether any case is going on against the builder or the project he is buying in.
If you have doubts about a project or the builder, you must perform a complete due diligence. At least the basic search can be done by you as a buyer and you can also take the help of legal experts to check whether the property you are buying is a safe bet or not. It is important to have an idea about the financial health of your project so that in case of any dispute or defect you can react on time.