Untitled Document

Compiled by :
Rachana Construction Co.(Nagpur) Pvt. Ltd.,
4th Floor, LOTUS, Plot No. 5, Gorepeth Layout, WHC Road,
Dharampeth, Nagpur 440 010 Telefax Nos. 0712-2022591 / 2022722
Website : www.rachanaconstructions.com

Owning a Residential Unit is one of the Dreams come true for any person, though the type, nature and value of the unit may vary from individual to individual based on so many factors concerned with life. As not everyone is lucky enough to go in for an independent house of his or her own choice, they prefer the best available option as on date (i.e.) to purchase a Apartment or a Flat in one of the Buildings of their Choice, at a location they would like to settle down.

When the construction of Apartment Schemes had just come into being way back in 1970-80’s the Buyer had very few options, with very few Apartment Schemes constructed by select few Builders, at locations may be not of his or her choice. But the need to have a shelter of one’s own, the Client used to purchase an Apartment from amongst the few options available and feel satisfied to the extent that he has a Shelter of his own exclusive for him and his family.

But over a period of time, the Scenario of Developing Apartment Schemes have changed. The number of Builders have increased innumerably, giving various options and choices to the clients. Further, there has been a fundamental growth in the Finance Options available to the Client at lucrative terms with easy documentation and long repayment period, with monthly installments lesser than average monthly rent for such accommodation. With so many options available (in a small City like Nagpur there are over 150 Builders and Developers of Real Estate) the Clients most of the time are in a dilemma when it comes to purchase of a Flat, and having booked one, he is not sure about his investment till the possession is handed over, and he is not aware of what is going to be in store for him in the form of the Flat and how much would be his future liability on its repairs and maintenance.

We as Builders thinking in terms of maintaining a healthy relations with our Clients feel that a Client planning to purchase a Flat should be aware of certain basic facts relating to development of Apartment Schemes, because this awareness would surely assist him in opting for the best amongst the available Schemes with the pride of self satisfaction. This Buyers Guide has been compiled by us with an aim to apprise the prospective Clients and Buyers of Flats, with various basic facts which they should be aware of while choosing an Apartment of their choice. An endeavor has been made to cover all aspects relating to making purchase of an Apartment easier for the Client and we hope you will find this Guide educative and useful in your search for an Ashiana of your choice.

1. Now that you have made up your mind to purchase a Flat/Apartment, you should before entering into the search freeze the following points
a. Your Budget b. Your Source of Funding the Purchase c. Your Options for preferred locations in the City.

2. Having decided on the above factors you should now think in terms of making the search for a suitable Apartment, which can be done from the following sources :
a. Advertisements b. Friends & Relatives c. Housing Finance Agencies d. Builders e. Brokers/Real Estate Agents
Of the above options you may opt for any one, but the most realistic one would be the Builder himself, because no one else can give you better details about the Scheme being developed by him. Details obtained from Housing Finance Agencies are also authentic to the extent of the credibility and reliability of the Builder recommended by them.

3. When you approach a Builder, you should :
a. Be prepared with the area of your choice b. the size of Apartment you are looking for and c. your Budget.
From the Builder You should ensure to collect the following details :
a. Detailed Brochure b. Rate per Sq.Ft c. Saleable area of the Flat d. Installment Schedule e. Mode of Payment f. Schemes approved with which Financial Institutions g. Schedule of proposed Completion and h. Other amounts payable
After you finally choose a particular Apartment in a Particular Scheme of a Builder, you should visit the Site and satisfy yourself with the progress of work going on, the development taking place in the nearby areas, what is located on each boundary of the plot on which the Scheme is being developed to satisfy yourself that the property is not surrounded by unwanted things like slums, waste dump yard etc., and the cost relates to the going prices in that location

4. When you finally approach a Builder, you should satisfy yourself with the title of the property and sanction of the Building. Please ensure to check for the following documents with the Builder :
a. Title Deed of the Property in the name of the Builder or b. An Agreement to Sale by the Builder with the Land Owner c. In case of (b), ask for a copy of the Registered Power of Attorney executed by the Land Owner in favour of the Builder d. The City Survey Property Card e. NA Order f. ULC Order g. Plans Sanctioned by NIT/NMC along with Building Permit h. Title Verification Report of a Competent Lawyer and i. Registered Deed of Declaration of the Scheme.
Further, if the Builder’s scheme is approved by any one Financial Institution, then the Client can assure himself that the title of the scheme is clear, because the verification and scrutiny would have already been done by the Financial Institution
“ALL SCHEMES OF RACHANA CONSTRUCTIONS ARE DULY ADVANCE PROCESSED & SANCTIONED FOR HOUSING LOANS TO CLIENTS”

5. What you should Collect from the Builder upon Booking the Flat
a. Payment Receipt b. Allotment Letter c. An appointment of date for entering into Agreement to Sale for the Flat

6.When you take a Loan, the Agreement is to be mortgaged with the Housing Finance Agency and for this the same has to be registered. Know the amount to be paid for Stamp Duty and Registration Fee, which is worked out as under :
a. STAMP DUTY : On the first 2.50 Lakh 1.0%
On 2.50 to 5.00 Lakhs 3.5%
On value above 5.00 Lakhs 5.5%
b. REGISTRATION FEE 1.0%
c. SCANNING CHARGES about Rs. 750.00
(Stamp Duty is Charged on Market Value or Purchase Cost, whichever is higher)

7. After Agreement What ?
After the Agreement, and with the Loan sanctioned, the Client will be receiving Demand Letters for payment of Installment at regular intervals. The Client should intimate the Financial Institution for release of the installment and should simultaneously satisfy himself about the completion of the stage of work at the time of payment of the said demand.
You should also confirm as to the other costs payable like for MSEB/Water Connection Charges, maintenance Deposit, any other statutory dues etc., and as to when they will be due for payment, to make sufficient provisions accordingly.

8. Client should find out from the Builder whether they undertake any changes in work within the Flat and take additional specifications. If so then the Client can give his list of such works and take an estimation from the Builder for undertaking such works.
“WE ASSIST OUR CLIENTS WITH SUCH REQUESTS”

9. NOW IT IS TIME FOR TAKING POSSESSION :
a. Visit the Site to check all the specifications as per your Agreement and ensure that all work is complete. b. In case something is left out or some places need to be finally finished, intimate the same to the Site Engineer and the Builder and get the same done to your satisfaction. c. Pay of the remaining dues to the Builder and take possession by simultaneously executing a Registered Sale Deed. d. Take a Letter of Possession from the Builder and give acknowledgement of having taken possession. E. Check with the Builder about forming of the Apartment Owners Association.
YOU HAVE NOW BECOME A PROUD OWNER OF YOUR OWN FLAT
The Interest Paid on Housing Loan to the Extent of Rs. 150000.00 Qualifies for deduction under the Head – Income from House Properties and the Principal Amount Paid qualifies for rebate on u/s 80 C to a maximum of Rs. 100000.00

10. AFTER POSSESSION WHAT ?
a. You should get your name mutated in the following Government Records -
(i.) Revenue Records (in the Property Card of City Survey Department)
(ii.) With Municipal Corporation (for Property Tax Assessment)
(iii.) With NIT/Nazul Departments if the Property on which the Scheme is developed belongs to any of these Departments

11.TERMINOLOGIES COMMONLY USED
a. Carpet Area – The actual utility Area within the Flat
b. Built Up Area – The Area of the Flat inclusive of Wall Thickness and the common areas related to the Flat
c. Super Builtup Area – The Saleable area inclusive of Balconies and share in all the Common areas of the Building.
d. Undivided Share & Interest on Land – The Share holding of Land, on which the Scheme is developed, relating to the Flat
e. Deed of Declaration – A Declaration about the Scheme which has to be registered by the Builder with the Sub Registrar in line with the Maharashtra Apartment Ownership Act, 1970
f. Agreement to Sale – The Agreement entered into between the Client and the Builder for Purchasing a Flat on various Terms and Conditions
g. Sale Deed – The Document Transferring title of the Flat in favour of the Client
h. Mortgage – Securing title of the Flat with the Housing Finance Institution
i. Search & Title Verification Report – A report prepared by an Advocate for clear and Marketable title of any property
j. N.A. Order – An Order issued by Sub Divisional Officer upon conversion of use of Land from Agricultural to Non Agricultural
k. ULC Order – An Order issued by Competent Authority that how the property is to be used as per the regulations of the Urban Land (Ceiling & Regulation Act, 1976
l. E.M.I – Equated Monthly Installment payable against the Loan taken
m.Processing Fee – The amount Charged by the Housing Finance Inst. For processing the Loan
n. Rate of Interest – The rate at which Loan has been sanctioned - Floating Rate : it keeps changing from time to time as per the changes made by the Financial Instt. Fixed Rate : it remains unaffected despite changes in made by the Financial Institution
o. Property Card – The record maintained by the City Survey Dept. for each property
p. Mutation – Registering the Ownership in City Survey Records/NMC Records

AT RACHANA WE ASSURE THE FOLLOWING FACILITIES TO OUR CLIENTS

1. Proper detailing about the Flat Schemes both at Office and at Site
2. No Hidden Facts or Charges
3. All legal clearances taken prior to announcing the Scheme
4. Proper Guidance for availing Housing Loan from our doorstep
5. Making all required documents available
6. Quality Construction and assistance to Clients for all their internal changes/Extra Item Works
7.TIME BOUND SCHEDULE – All our Schemes have been completed and handed over within the Time Schedule
8.In-house legal assistance in matters relating to purchase of Flat and Financial Guidance in matters relating to Income Tax/Capital Gains etc.
9. Providing Maintenance for any Civil Work Defect during the 1 Year after handing Over
10. Collection of 2 years Maintenance Deposit from all Clients prior to Sale Deed and handing over the Same to the Apartment Owners Association to ensure availability of funds for smooth and uninterrupted maintenance and provision of common facilities
11. Providing Warranty from Suppliers of Plumbing and Sanitary materials, Doors, Electrical items, Aluminium Windows etc.,
12. Forming of the Apartment Owners Association and getting the First General body Meeting initiated with proper guidance