Does the builder have right approvals?

You should ask your developer for a copy of some crucial documents such as intimation of disapproval (IOD) and commencement certificate (CC). For an under-construction property, you could even look at some approved drawings of the project.

IOD lists out the conditions based on which the building should be constructed. It is usually valid for one year and has to be revalidated thereafter.

A CC is issued by the local authorities such as Municipal Corporation of Greater Mumbai (MCGM), which gives the licence to the builder to begin construction only after all terms and conditions have been satisfied.

If you don’t verify the project’s CC, you could end up paying money for a property that will never be constructed. These documents would also ensure that the land is free of mangroves, salt pans or any such restrictions imposed by the local municipal authority.

Another crucial document is clear land title. It should be free of litigation and any kind of associated debt. The buyer should also ensure that the property has a functional water connection and proper power supply with an occupation certificate.

Without these documents, a buyer is better off without investing in these projects. Ninety five per cent of home buyers opt for a home loan. So, even if a home buyer fails to undertake complete due diligence before booking a house, the HFC will do all the relevant paper and legal checks before sanctioning the loan.