Things You Must Check Before Buying a Flat in Chennai

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  • By Admin
  • Aug 30, 2018

When it comes to purchasing properties, people usually look at the location, price and the possession date. These, without any doubt, are important parameters for shortlisting real estate; however there are many other important things to check for before you finalize the deal. So, if you are looking to buy a flat in Chennai, here are 13 important things you must check before finalizing the purchase.

1. Sale deed

Sale deed tops the list of documents that you need to verify before you buy a flat. Sale deed is the core legal registered document. This document acts a proof of sale and transfer of the property. Also, it is advised that you read it thoroughly and check all the terms and conditions before signing the sale deed.

2. Construction Clearances

For commencement of construction of any property, a “certificate of commencement” is mandatory. This certificate is issued by the town planning engineering department after the inspection of the building’s foundation for the superstructure and its boundaries. The certificate also means that required licenses and permissions have been obtained by the real estate developer.

3. Approved Planning

It is always good to run an additional check to verify that the building plan as well as the layout plan has been approved by the proper authority. This will ensure also that no by-law applicable was broken. When verifying the approvals, ensure that the floor where you have booked the flat has been approved in the building plan.

4. Land Use Certificate

When you buy a flat, a lot of documents need verification. One such document is Land Use Certificate. It is illegal to have a residential property on a commercial or industrial zone, so it becomes necessary to check the certificate to ensure that when you buy a flat in Chennai, it is in the residential zone. Chennai is expending and often agricultural land is converted for non-residential usage by paying a stipulated fee to concerned authority. To ensure that they are no discrepancies, check for the order issued by the tehsildar or the deputy commissioner of the zone, licensing residential construction on that land.

5. No Objection Certificates (NOCs)

The real estate developer should also be able to provide you with copies of the urban land ceiling NOC, environment NOC, as well as NOCs from the electricity and water authority.

6. Banks Financing the Project

Real Estate companies are sitting on unsold inventory and do not have finance to complete their projects. This has led to banks becoming wary of financing new projects. There are many projects where you won’t able to get a bank loan at all. So, once the deal has been struck to buy a flat, find out the banks which are ready to provide the loan and choose the one offering loan at the lowest rate.

7. Calculate the Cost

Most of the times when you buy a flat in Chennai, the price mentioned is the basic cost, and other factors such as the development fees, preferential location charges, parking charges, club charges and service tax come forward when you decide to seal the deal. All these will add up to make the total cost of the property.

8. Check the Builder’s Credential

It is always good to check the builder’s credential. You could do a general verification of the real estate developer by checking the past or current projects or even posting queries on the various online real estate forums.

9. Buy or Rent

Most people buy a flat thinking that they will use rents derived from the property to pay for the EMIs. However, many experts agree that it is a wrong approach. Thinking that rent from the property will help pay EMI is not the right approach as rental yield on residential properties is around 2-3 per cent. Moreover, there is a chance that property will remain vacant for months before you find a tenant.

10. The Right Payment Plan

To pay for the flat, there are a number of payment options available in market. These include down-payment plan, flexi-payment plan, construction-linked plan and possession linked plan. The payment plan must be chosen carefully as there are hidden costs for every convenience.  

11. Size of the Flat

Real estate developers generally mention the super built-up area in the brochure. The super built-up includes the common area such as staircase, lobby, etc. The carpet area of the flat could be actually 30 per cent less than the one mentioned in the super built-up area.

12. Check the Infrastructure around the Site

Metro connectivity or other planned infrastructure development near the location of the real estate you intent to invest in can boost the return on investment tremendously. Also, make sure that the property is not close to any polluting industry.

13. Check the Site

The layout mentioned on the internet or the brochure could be completely different from the reality. So, it is better to do visit the site before you make any booking. Interact with those living in the neighborhood as they might be aware of any legal dispute related to the site.

If you are still circumspect about buying a flat in Chennai, you can take professional help. You can get opinion from a lawyer specializing in property transactions and get all the important documents verified.


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