just married sudesh is thinking of buying a house the 28yearold has shortlisted a couple of underconstruction properties he plans to continue to live on rent till he gets possession of his new home he has saved some money for the down payment and will take a loan to pay the balance he has heard that buying an underconstruction property is risky when the real estate market is sluggish how can he mitigate some of this risk sudesh must perform thorough due diligence on the builders completion track record reputation on contractual terms and quality of work paying rent and a home loan emi can be tough especially if there is a delay in construction the high outgo will put sudesh under financial stress however as quality comes at a price sudesh should not mind paying a premium that a wellknown builder may charge it would mean putting his anxieties to rest he must find out if the land on which the building is coming up has a clear title and the builder has taken all the necessary approvals from the municipal and other authorities for construction these typically include commencement certificate approved building plans and development agreement sudesh must inspect the permissions and permits in writing any slack will delay possession and put the project at risk sudesh must ensure that all costs are quoted to him in advance the base rate for an apartment is typically quoted as a per square feet rate while floor rise parking stamp duty and registration charges are discussed and wellknown the builder must be transparent about any additional costs such as the vat and service tax liability for the buyer any prepaid maintenance and upkeep charges extra charges for amenities such as club house and the like these are substantial costs and there should be no surprises for sudesh on this aspect sale agreements are typically drafted in detail by lawyers hired by the developers and not many take the trouble of going through all the clauses in detail but sudesh must realise that these agreements are aimed at protecting builders from legal troubles while giving very few rights to buyers it is also important that sudesh reads the agreement carefully before signing it he may take the help of an advocate if required the risk associated is far less in case of a readytomovein property however it comes at a higher price as the unit is ready an underconstruction property on the other hand is obviously cheaper and may fit well into sudeshs budget so it might prove a good deal for him only that he must ensure that he has checked for any loopholes missing paperwork or delays content centre for investment education and learning ciel