TAKING CARE WHEN BUYING AN APARTMENT

By nature, we all want to 'OWN' a roof over our head. Even when people migrated to other cities they still felt the need to 'own' their home wherever they needed to reside. So, buying apartments, became a necessity.

The crucial 'ego' factor related to apartments
Having no financial constraints, you may want to buy an independent house, in which you are your own master, as opposed to, in an apartment building. However, we have to basically understand very clearly that, buying an apartment will be like buying a bus with 20 to 30 other persons, as equal owners, having the same rights as you have and these other owners will most likely be total strangers, with very different life-styles and language to yours. Due to such diversity in living styles of buyers, there is the, 'Karnataka Apartment Ownership Act, 1972,' ( K.A.O.Act, 1972 ) in place, which forms the basis of an Apartment Society's, 'Memorandum of Association, it's Rules & Regulations,' for the society to be administered and operated by, thus avoiding chaos in it's governance.
It would therefore, be in your interest to be mentally prepared to live in a building, jointly owned by about 30 others, having rules and regulations for commonality in living with other owners, living behind another door, not six feet away !

Choosing the Builder
You are going to invest your money for an apartment, with a builder, in lakhs. Therefore, choose a builder who by 'market reputation' is trustworthy in most respects. Check:
a) The builder should preferably be a member of K.O.A.P.A. (Karnataka Ownership Apartments Promoters Association).
b) Check if buildings the builder has built, for quality of construction as was promised.
c) Find out from the previous buyers about the Builder's attitudes, helpfulness etc.
d) Reputation to maintain delivery schedules? Delay in delivery by the builder may prove quite expensive for the buyer.

Legal aspects to check before committing to buy an apartment
You should verify, ideally by a reputed local lawyer, the details for ownership of land on which the apartment building is being constructed. Bogus builders do exist. Do not be too trusting, or lax in your approach, when dealing with a builder. If you ask for it, the Builder will have to give you, for verification :-
i) Copies of all land documents for your scrutiny, from the original site allocation to
the buying party of the first sale and all subsequent sales thereafter.
ii) Possession certificate of C.I.T.B / M.U.D.A as applicable.
iii) Receipt of last tax paid on property.
iv) Khata certificate from the Municipalty, etc.

Taking care when buying an Apartment
v) Encumbrance certificate, and so on. There are some 9 to 12 points to check out the actual ownership of the concerned land. Besides, The Karnataka Ownership Flats Act, 1972, (K.O.F. Act, 1972) is in place, for helping buyers to check any details involved in purchasing an apartment.
vi) A list of other buyers of apartments in the same building has to be provided, with details of prices charged to them for their apartments. (Many builders may refuse ).
vii) Furthermore, under the K.O.F.Act, 1972, the Builder will also have to inform you about the kind of Society to be formed after the 'completion certificate' is received.
viii) The above Act also forbids the builder to give possession to any buyer to occupy before the 'completion certificate' is issued for the building from the local municipalty.
ix) In the interest of the buyer, the Act referred to above also mentions about advance payment amounts asked for by the builder and so on. A lawyer's help would be quite useful.

The basement parking area
Logically builders cannot charge for the basement parking land, because the land is already paid for in the cost of the apartment. Builder may have the right to charge for the paving only. Every apartment owner automatically owns a percentage of the plot on which the building is built when buying an apartment. This proportion of land ownership is shown in the "Deed of Declaration,' which the builder has to execute and register for the Society to be formed.
However, no apartment owner can claim exclusive ownership of any particular part of the basement area as their own, because these are known as 'Common Areas' in the Karnataka Apartment Ownership Act, 1972., and is accounted for in apartment cost ! Definitely seek legal opinion on this issue.

An apartment on the terrace floor
Most apartments built on the terrace floor, are usually unauthorized by the municipalty and have no building permissions for the same. The builder should make you aware of an intention to build any kind of a residential apartment on the terrace floor, for you to choose from. Before you do, you have every right to check the municipal permissions for it. You do not want to pay for an unauthorized apartment.

Bigger the plot of land, more the facilities offered. More the monthly maintenance costs!
Buyers, for whom recurring costs are of no consequence, may want more facilities on the large residential property. However, many buyers may look carefully at the monthly maintenance costs they are likely to incur for the facilities offered. Therefore, apartment buyers need to pay close attention to the numerous extra facilities and attractions, a builder is offering in the project. Like:-
i ) Borewells on the plot. Builders will allege an unending water supply.
ii ) Large landscaped areas
iii ) Club house, swimming pool, tennis court, childrens' play park, gym, etc.
iv ) Multiple electricity points on generator power in your apartment.
v ) Piped gas.
vi ) Mini market.
All this has a bearing on capital costs and monthly maintenance costs for the buyer.
Check the plans also for, i) guest vehicle parking. ii) Washroom / toilets, benches for drivers, property staff and maids etc. They also are human beings and are in your service, whether directly, or, indirectly. Their facilities should be inconspicuously located on the property and should be adequate in number depending on the size of the property.

The builders would not have worked out the realistic monthly maintenance costs, even so, copy of details of approximate maintenance costs they have worked out, can be asked to study from the builder, because, you need to justify the one-time payment in lakhs for a big property, some builders ask for. Never feel embarrassed, or hesitate, to ask for all financial details, from the builder, after all, who has to pay for it. ?
One thing is clear; the bigger the property, more the extra facilities, therefore, more the monthly maintenance costs.

'In - Built' security in design of the building
Neither architects, nor builders, bother too much about 'in - built' security for apartments in their designs. Very often, the architects and builders, are more concerned about how attractive the design of a building is, rather than how secure the apartments are in their design, to prevent easy access, from one apartment to another via the balconies or the windows. Question is, would the architect or builder, feel secure, without expensive alterations & additions to the apartments they design, were they and their families, to live there ?

Nor do Architects and builders look into the issues of noise filtration from one apartment into the other. Light switches on common walls, are placed 'back to back,' to lower construction costs. Noise at nights, such as loud conversations, T.V. noise etc., filtering through these openings in common walls with adjoining apartments, can be quite disturbing!

Take the facilities offered, one by one
i ) Bore wells : If not used judiciously, bore wells too, dry up! No bore well is exclusive for the land where it is. Bore wells are all interconnected underground and so a great many bore wells go dry and hence cannot supplement the city's main water supply for long.
ii) Landscaping : In a large property landscaping is necessarily on an extensive scale which requires water in large quantities. Therefore the installation of a Sewage Treatment / Water Recycling plant, becomes a necessity, to generate usable water for landscaping, water closet lines, etc.
No builder considers planting vegetation that survives on very little water and yet, remains healthy. There are plenty of such plant varieties available. Lawns look good, but, need a lot of water to keep looking good.
iii) Clubhouse: Clubhouse and it's facilities are also heavy consumers of water. Consider filling the swimming pool once and then connecting a water filtration plant operating continuously to keep the water clean for swimming.

Builders developing such large acreages would do the city a great service by installing, Sewage Treatment & Water Recycling plants, on all large properties they develop. There will be plenty of recycled water for large landscaped areas and will save significantly large quantities of municipal and bore well water. This would certainly add to monthly maintenances expenses, but the extra purified non-potable, water can very easily be sold to recover some expenses. Builders will otherwise, leave this water problem for the buyers to solve. Do not forget, water scarcity is an on going world-wide phenomenon!

iii) Multiple electrical points on generator : This is just, 'sales talk' and sounds quite tempting, but is not equally fair to all residents of the building. For any extra electrical load, a bigger generator is required, which means a higher capital cost and therefore a higher, A.M.C.( annual maintenance cost.). When an added cost is not equally useful to those having to pay for it, then it is an unfair cost. Your apartment may be closed for months, but you end up paying the higher diesel consumption every month for use of extra light points on generator power for others.

iv) Piped gas : I feel, the most dangerous of all facilities on offer. Piped gas in a residential building of, say, 30 apartments, needs storage space for about 44 cylinders. i.e., one bank of 22 cylinders on tap and the other bank of 22 cylinders awaiting replacement. Gas banks have to be built as per specifications of the fire department with municipal permissions and licenses. Municipal inspectors carry out regular checking of the installation.
Does any Society want the added responsibility of looking after (a high risk of explosion), gas bank in the compound, or, the basement of your building ?
In hotels and hospitals where gas banks are commonly used, there are full fledged well trained engineering, maintenance and security departments looking after all operational problems of the facilities in place. Access to those areas are restricted and closely guarded.
In this case, neither the builder, who offered the facility, nor the gas company that installed the gas lines in the building, will bear responsibility after their work was certified by the Fire Brigade department and the municipalty! So, given the Society's inadequately numbered and untrained staff, the responsibility for any Building Society's management committee is huge, with so many lives in the building and the adjoining neighbours on all sides ? You are much better off and safer with your own gas cylinder, you have been used to for over 30 years inside your own apartment!!
v) Mini Market : A shopping facility created nearby for daily consumables, is a good
idea. Check on the plans, Where it is to be located on the property ? Check the kind of ownership clauses the shops have, because the builder will be gone and the shop owners may not respect your need for cleanliness in the area. Check on garbage disposal planned, both for the residential property and the shopping facility. Garbage attracts a number of rodents, animals and birds. This facility should not be planned near any entry to the property.

Important checklists:
a) During and after construction. b) Before taking possession of your apartment.
Many builders, may lower their construction costs by various methods:-
1) Reducing floor slab thicknesses, that are stipulated in the building laws.
2) Reducing ceiling heights of apartments.
3) Reducing room sizes, even if, by inches, to those, as shown in the plans given to you with the brochures.
4) Check finishes of your apartment, including, kitchen and bathrooms and compare details as printed in the brochure given to you.
5) Check, National Consumer Commission & Supreme Court orders for fees charged for electricity & water connections, by builders.
6) Be sure a clause for builder's delay in giving possession is in your favour, in terms of monetary compensation, because you may need to extend your stay in the place where you may be temporarily staying, waiting for your new apartment.
7) Many builders 'demand' declarations of, 'No Claims' from buyers, so as to absolve the builders of any 'wrongs' before giving possession of the apartment. This is an unfair 'trade practice' and you can refuse to sign such declarations.
8) Whether the builder, after giving possession, had rectified the flaws in apartments and in the building's built and previously sold, as requested for by the buyers. Defects in construction come to light months after occupation. The National Consumer Commission is deliberating on the 'time frame' for this issue, at the moment.
9) IMPORTANT, the Building Society to be formed, will have to be registered with the, Registrar of Co-Operative Societies, which is the proper authority, as on date, as per 'The Karnataka Apartment Ownership Act, 1972,' with all documents required as per the Act. This is the responsibility of the builder, as per, K.A.O.Act, 1972 and the builders' own K.O.A.P.A.
10) Another important aspect which is overlooked by builders. Once occupation of apartments is permitted in the building, the builder MUST NOT permit any rules of the said Act to be broken. Exterior construction changes to the building what-so-ever, by any buyer, cannot be permitted. The building has to be handed over to the new Society, 'as built,' which is to be formed at this stage.
General Conclusions.
" Be mentally prepared to be only a 'joint' owner in a Society.
" Take advice of, or engage a local lawyer for all legal matters when buying an apartment, if you do not feel like attending to it yourself.
" List out all documents for your signature till the purchase is completed.
" Check out legality of financial outgoings and firm up the schedule for payments with the builder, that you have to make.

Buyers should get involved more into the buying process of their apartments, as mentioned above. Apartments which are ready, or are occupied should be seen and checked from all angles as mentioned above also. Go step by step and do not hurry. After all it costs a lot of money and above all it is an, 'appreciating asset' for you. So, 'Good Luck,' to you when you buy your apartment !

Ravi Kumar
Hon.Secretary (Sankalp Pearl Apartment Owners Association)