TALES FROM AKSHAYA - CHAPTER 40
LAST WEEK we went through questions 1 to 9 in our quest to help you identify the right attributes that are a must-have for your prospective developer. You are after all investing your life’s savings, and also in all probability parking a major portion of your future savings into your new home - IT IS IMPERATIVE THEN that you take an informed decision choosing the right developer. Here are Questions 10 to 18, the answers to which will help you establish the pedigree of the developer for yourself.
10 DOES THE DEVELOPER ASSURE INDEMNIFICATION FOR DEVIATION?
Deviations from the original design are hardly discernible to a layman customer. And they are not imminent threats to a customer - it has nothing to do with immediate living conditions. But, if there are deviations and the authorities find out, they have the right to demolish the building. That’s right - your dream home can be reduced to rubbles. So it is vital that you find a developer who assures zero deviations from original design and furthermore indemnifies customers from any deviation.
11 DOES THE DEVELOPER ENSURE FULL LEGAL SCRUTINY TO DELIVER A CLEAR AND MARKETABLE TITLE?
As a land owner, there are chances you may not have / be aware of the various documents you need to have for your property, let alone the history of prior development or if all documents are in order. It is an arduous task to get all documentation in place, and more so to verify it all as an individual owner. Thus, you need a developer you can trust, to deliver on a promise that will last the lifetime of the project and beyond. Akshaya will help you in the entire process of signing a JV agreement, if a Power of Attorney / Release Deed is needed in case of multiple owners, Legal Heir Certificate. Patta. Encumbrance Certificate et al. 100% documentation. Always.
12 DOES THE DEVELOPER COMMIT TO MAKING ALL PAYMENTS ON TIME?
When you get into a Joint Venture, the property is generally split by a share ratio. Like “60:40”, for instance. You as the landowner retain 60% of the property and 40% goes to the developer. Assume there are 10 homes being developed. Under a 60:40 deal, you own 6 homes, giving 4 to the developer. Or under a revenue share deal, you own all homes where 40% of the sale of each home goes to the developer and 60% is yours. Either way, make sure you find a developer who pays what they owe you, on time. Make the payment terms as clear as possible, so there are no differences later. For this, you must visit a few of their completed projects and talk to residents.
13 IS THE DEVELOPER’S CUSTOMER SERVICE WORTHY OF YOUR INVESTMENT WITH THEM?
Customer service in real estate is the most important facet of the business. Unlike other goods and services you buy, real estate collaborations, and JV ventures in particular need you to have a project manager from the developer’s side, who guides you through the length of the development. Your project manager is the face of the developer. If you have your project changing hands often between personnel, you’ll spend a lot of time and effort repeating yourself to every new project manager who is assigned the duties in your venture. Which can be both mentally and physically taxing. Not to add the risk of your project being delayed due to lack of a proper chain of communication. From signing-day to key-handover, customer service is vital.
14 IS THE DEVELOPER SERIOUS ABOUT DEVELOPING FUTURE-READY ENVIRONMENTALLY CONSCIOUS HOMES?
Your developer must build Certified Green Homes. In India, the Indian Green Building Council, (IGBC), awards ratings for buildings based on their environmental consciousness - from Silver to Platinum. Green buildings are more energy efficient - which means brighter common areas, cross ventilation, better designed homes, water conservancy, intelligent water and waste management systems and the like. Investing in a green building now will serve you better for years to come.
15 HOW TRANSPARENT IS THE DEVELOPER?
Broadly, this means - how honest and trustworthy is the developer before, during and after the venture is inked out? Real estate collaborations are intensive and time consuming. You need a developer who is meticulous at every stage of planning. And meticulousness in real estate can be mastered by one thing only - foolproof documentation. So from detailed area statements to a document book to the site plan, UDS conveyance, common area share, plinth area, built-up area, super built-up area... the developer must give utmost attention to the finer details. Make sure your developer is serious about being transparent. Next week, we will do a deep-dive blog focusing on transparency.
16 IS YOUR DEVELOPER RECOGNISED IN THE INDUSTRY WITH AWARDS AND CERTIFICATIONS?
Certifications and awards are reflective of the collective effort of every individual and stand testimony that the organisation will strive to raise the bar, setting the benchmark for the highest standards in their field. Akshaya has received several awards and accolades including being named 2021 Real Estate Company Of The Year by Construction Week Awards. For us, every award is a statement of Akshaya’s commitment to quality, innovation and transparency. So when you visit offices of prospective developers, ask to see their certifications and recognitions.
17 HOW DO THEIR COMPLETED PROJECTS LOOK?
When you meet a developer, they will impress you with their presentations, designs and earnestness. They will mean well, for sure. But what you need to see if they carry that enthusiasm for the stretch of the venture. For this, you must visit their completed projects, walk around and see if what they promised was delivered, if the design is human-centric, whether it is child, elder and disabled-friendly, if there is water stagnation anywhere, if there is proper social infrastructure et al. How well has the property been maintained thus far?
18 DO THEY HAVE LANDOWNERS AS REPEAT CUSTOMERS?
The strongest testimony for a developer is in getting repeat customers. Many landowners have parcels of land across a city or state and at some point they will want to monetise their property. If they come back to the same developer after their first venture, it will speak volumes about the pedigree of the developer. Be frank and ask the developer if they have such relationships.