Things To Check Before Buying An Under-Construction Property
The following are some things to look for in an under-construction property. The first step is to get the receipts of all your payments, preferably in the form of checks. If the builder insists on providing original receipts, ask for them. Once you have received the receipts, you can sign the Tri-Party Agreement or Khata certificate. The following items are also important when you are looking for under construction projects in Dubai.
Legality
Buying under-construction properties can be risky, but they do have its advantages. For one thing, they are generally located in new areas of the city with a high potential for appreciation in value. When considering an under-construction property, make sure to check its location and any plans for the surrounding area. Under-construction properties also provide buyers with flexible payment options, such as construction-linked plans and subvention schemes.
Tri-Party Agreement
Before purchasing an under-construction property, make sure to review the terms and conditions of the Tri-Party Agreement. These agreements will protect both the buyer and seller from potential future conflicts. In addition, a Tri-Party Agreement indicates that the seller has no arrears to make to a third party. These agreements can cover a variety of parties, including the property owner, architect, and building contractor.
Khata certificate
Whenever you buy a new property, you will need a Khata certificate. This document carries details about the property and the owner, and it is required by the BBMP for a variety of purposes, including obtaining home loans, building licenses, and utility connections. It is also required by the government for tax purposes. It’s also an important document when applying for a building/trade license.
Obtaining receipts form builder
Obtaining receipts from the builder before buying an under-construction property is crucial for two reasons. One, it will serve as proof of your payments. The other, it is necessary for home loans. If you fail to get the receipts, you can end up with a legal dispute if you buy the property. Obtaining receipts from the builder before buying an under-construction property will protect you from this.
Documents to check
Obtaining a completion certificate is a must for under-construction properties. This document shows that the buildings were constructed following approved building laws and codes. The occupancy certificate is also essential for securing loans and getting water and electricity connected. Aside from this, make sure the seller provides you with the documents you need before you make the purchase. You can also obtain a copy of the plans if you want to check whether they are approved by local government authorities.
