PURCHASED A NEW HOUSE……CELEBRATIONS !!
TIME TO TAKE THE POSSESSION AND GET HOUSE REGISTERED……CONFUSION AND UNCERTAINTY !! Not to mention time crunch from your busy schedule.
When a person books his/her house with a developer, he/she has waited long time to come to a stage where you get a request for possession of your home. While this is a joyous occasion, one has to be careful. It will be helpful to be aware of a few things to check out before taking the possession of your home.
Will broadly classify this topic into four sections
Home Readiness for Possession
The most relevant document at the time of taking possession from developer is the Occupation Certificate (OC). A developer needs to submit various documents with the authorities to obtain this Occupation Certificate. Some of these documents are,
Built Plan along with Elevation, Site and Section Plan
NOC (No-Objection Certificate) from various govt. bodies like fire department, airport authority, pollution board etc.
Tax assessment along with Property Tax Receipts
Photographs of completed building, rain water harvesting and solar panels
A Home owner must demand a copy of the Occupation Certificate from the developer. Sometimes developers issue possession notices to home buyers on the basis of “Applied For” Occupation Certificate. An “Applied For” status does not guarantee Town Planning Department will issue Occupation Certificate. If there is no Occupation Certificate, it is advised that home owners should not take possession of the property. Developers too cannot force possession if Occupation Certificate is not issued by Town Planning Department.
Also, building without Occupation Certificate have trouble getting civic amenities like Electricity, Water and Sanitation connection and also have to bear greater Property Tax burden. Resale properties also require Occupation Certificate, properties without Occupation Certificate may not get a good price and owner may lose out on significant returns.
After securing the Occupation Certificate from the developer, home owner is expected to take the possession letter with ID proof (or POA, if applicable) at the time of taking home possession.
2. Project Status
Awareness on readiness of common areas and amenities is a must before taking possession. If home possession is taken, there is no guarantee that the project will be completed to owner’s expectation. Past record, reputation of the developer plays a role here but there are no guarantees.
Some of relevant common areas and amenities about which one needs to be aware of are listed below,
Common Green Areas, Parks, Lawns
Common Parking Area
Water Treatment Plant
Electricity connection from Govt.
Adequate Power Backup DG capacity
Lifts, Common Areas
Sewage Treatment Plant
Project Boundary Wall
If common areas and amenities are not constructed to Home Buyer’s expectation, one has to take a conscious call before taking home possession. Future Maintenance Charges will also depend on maintaining the property going forward.
3. Home Readiness for Possession
At the time of possession of your home you would clear a day and book a time with the developer representative. On reaching your perspective apartment/ home, you would be fairly unclear as to what all to look out for. At the handover time, developers are quick to patch or superficially fix homes sometimes, just to tide over the inspection quickly. As a discerning customer and owner of the property you need to have a keen critical eye, as well as a good idea of what to look out for.
Some of the essential checks needed to be made at the time of “Inspection” for possession are listed below. A clear idea of the specifications promised by the developer while selling the property is helpful.
The list is divided into various categories for ease of understanding.
Broken Floor and Wall Tiles
Proper Grouting between Tiles
Check Tile colors
Cracks in the Plaster
Smooth and even finish of the Paint
Slopes in Bathrooms, Balconies, terrace for Water drainage
Cracks in Granite slabs in Kitchen and leak-proof sealing
Breakages in exposed Drain Pipes in the Balconies
Functioning (water supply and leakage) of all Chrome Plated (CP) Fittings, i.e. Taps, Mixers, Shower-heads, Faucets, etc.
Check for Toilet Accessories like Towel Rods, Coat Hooks, Toilet Paper Holders, etc. (if supposed to be provided by the developer)
Seepage due to leaking Pipes, Joints, Fixtures, etc. Specifically check for leaks in Wash Basin
Sufficient pressure in WC unit’s flush cistern
WC Seats, Covers
Geysers if provided by the developer need to be checked for functionality (electric supply, heating capability, no leakages in inlet & outlet pipes)
Bottle traps in toilets
Quality of Modular Woodwork
Provision for “under counter water purifier” (Water outlet and electrical point)
Seepage under the wash basin area
Functioning of Hob & Chimney if provided
Provision for Piped Gas. If yes, then check for Gas connectivity and meter. Also check for provision of Gas Leakage Alarm System
Provision for extra electrical equipment i.e. Microwave, Oven, Fan, Geyser, Exhaust Fan
Damage in Wooden Floor Panels due to moisture, Wear & Tear
Air Pockets in Wooden flooring
Skirting and Edge Profile should be well fixed
Gaps in the flooring Panels should not be there
DOORS AND WINDOWS:
Ease of opening and closing
Check for large Door Frames joinery with the wall. In the absence of Holdfasts, the Door frame vibrates with frequent use causing ugly cracks in the wall
Polish /Paint finish of the doors
Functioning of Locks
Scratches on Toughened Glass
Working of all Electrical Switches, Plugs to be checked
AC functioning (Cooling, Heating, Fan Speeds etc.)
Washing Machine provision with Electric Socket & Water disposal
Exhaust Fan provision
Broadband/Optical Fibre connectivity to home
Internet and TV outputs and their functionality
Functioning of Property Intercom with relevant contact numbers
Check for provision of Geyser in the Kitchen
Check for provision of Ceiling fan in the Dresser
Visible Cables/Wires in the utility
Electricity, Gas and Water Meter readings and functioning
Car Parking location
Possession of all keys (usually 3 sets)
Letter Box Keys
Parking, RFID stickers
AC’s, Chimney, Stove Warranty Cards
Access Cards, Club IDs
Smart Tabs, Door Video Phone (if provided by Developer)
Tray for the Water dripping from the VRV Unit
Magic Eye at entrance Door
Smoke Detectors, Water Sprinklers
List of point of contact for various services within the complex
4. Home Registration
After taking possession of your home, it is advisable to get your home registered with the concerned authority so that a legal ownership is entitled to the buyer. The registration of property reduces the chances of fraud and helps in resolving disputes (if any) in future.
The registration of property includes submission of relevant documents along with the payment of stamp duty and registration fees to the stamp and registration department of a state.
1. Stamp Duty
Stamp Duty is a form of tax which is levied by the government on legal documents. It is payable as a percentage of Agreement Value or circle rates, whichever is higher. The rates for Gurgaon are,
Stamp Duty Rate
Male & Female Joint Owners 6%
2. Registration Charges
Registration charges are an additional levy over and above the stamp duty and is levied to cover the cost of running registration offices by the government. Following are the registration fee slabs in Gurgaon.
Agreement Value Registration Charges
1-50,000 Rs 100
50,001-100,000 Rs 500
100,001-500,000 Rs 1,000
5,00,001-10,00,000 Rs 5,000
10,00,001-20,00,000 Rs 10,000
20,00,001-25,00,000 Rs 12,500
Above 25 Lacs Rs 15,000
3. Administration Charges for Registration
To make property registration at sub registrar’s office a hassle-free experience (handle paperwork etc.), a developer may charge an administration charge of anything from Rs 5,000 to Rs 10,000 to the home owner.
Excitement/Slackness at the time of taking possession or casualness in getting Registration done can lead to uncomfortable situations in the future. A trust worthy expert, with a critical and experienced eye can be a great help to go through the entire procedure.
Native Sutra is a professional Property Management firm providing comprehensive services for your residential properties in Gurgaon – from Home Fit-outs to Property Administration.
DISCLAIMER: Native Sutra does not provide any legal advisory services or legal opinion. This document should not be construed to be legal advice. The document is authors opinion only and Native Sutra does not guarantee the suitability of the document for any transaction. Please obtain independent legal counsel to ensure compliance in use of the document.