GUIDE-TIPS-CHECKLIST for Real Estate Housing Buyer's in Dhaka,Bangladesh

[Reyed Mia (Apprentice, DIU)]

GUIDE-TIPS-CHECKLIST for Real Estate Housing Buyer's in Dhaka,Bangladesh

Thumb Rules:

Do not sign any document (Deed of Agreement or Application with Terms & Conditions): Not even when you are paying booking money, but don't forget to take your money receipt. You'll thank me for this. Do not sign a blank cheque.

Do not make any payment(down payment or installment) before signing the Deed of Agreement. Ask for a draft Deed of Agreement with their official offer. Let your sales officer(agent) know that you'll need some time to go through the draft agreement. He'll work best for you if you do not pay the booking money. Remember, "the more you pay, the more you loose control and the more developer gain control". Getting money back is not an easy task.

Take your time, consult with someone best on it, make sure you understand each and every line & word of the draft. Specially when the sentences are long(it can be intentional & trap). Give enough attention to the following key issues:

Legal Description of the property: Make sure it explains the location, size, and the right to the land, common space and infrastructure.

Principle of all agreements: Put someting like, "Purchasers are the owner of the property. If any clause or sub-clause conflicts with the principle will be null and void".

Sole Owner: The Developer (seller) herein warrants that it is the sole owner of the said real estate with a full right and authority to sell or dispose or transfer the rights on roads, open space and utility infrastructure in the Building/City including the said apartment to the Purchaser and that no other person or persons or authority whatsoever have any claim, right, title, interest, or lien in, to or on said real estate.

Price: No where in the agreement it is allowed to escalate the price(except if you want) for any future events.

Payment Schedule:: Negotiate dates considering your arrangement. Mind the payment delay (default) compensation condition.

Compensation for delay of Handover/delivery: Consider your bank loan and other losses and condition of the compensation for delay payment. e.g: Whatever said in other clauses, y% per month on the total amount paid. Be attentive about the term grace period, do not allow it, or try to keep it as minimum as possible.

Management Agreement: The principal of the agreement must be "The purchasers are the owner of the Building/City" and have full authority to manage it, and all sorts of charges including utility & maintenance are the costs only and the costs are verifiable.

Documents, part of agreement: Include the Layout, plan, specification and land measurement approved by Government authority(e.g:RAJUK) where property for other purchasers including future purchasers are mentioned.

Delivery(Handover) Date: There must be an end, even after a grace period.

Refund: If surrendered by purchaser or canceled by Developer or project is abandoned: To make it balanced for all, all three options may follow the same condition. e.g: x% on the total amount paid.
Compensation clause for delay of refund:Can be same as compensation for delay of handover or delay of payment. e.g: whatever said in other clauses, y% per month on the balance amount.

Be careful about following conditions in any application or agreement or document you sign:
Delay in payment beyond the due dates will entail delay payment at the rate of x% per month on the amount of payment that is delayed.

In case of surrender of allotment by buyer or cancellation of an allotment by the Developer due to default in payment of installments by the buyer/purchaser or any other reason, the amount paid to the Developer shall be refunded after deducting x% of the total price only after resale of the apartment in question.
If the completion period of the project is affected by unavoidable circumstances like natural calamities, political disturbances, non-availability and price hike of materials, non-payment of installment in time by the buyers and any other force majeure circumstances, the buyer will not be entitle to any compensation.
If, for any reason beyond the control of the company, the project is abandoned, the company will refund the paid amount to the allottee. In such eventuality, the allottee will not be entitled to any compensation or damage whatsoever.
The buyer has to take written permission from company before carrying out any modification work.
You've no guarantee of the quality of the materials will be used for your apartment. No practical mechanism exist here in this trade. You may try the developer for this.

Handover of Flat/Apartment:

The handover date may (will) change dozen times and delay of months or couple of years is often unavoidable.
Example: A project worth Taka 10 crore. Delay of 3 months will allow earning by Developer an amount of Taka 24 lacs considering bank interest rate 10% only.
Allow conditional payment of a good percentage of total price with the handover of the flat/apartment/property.
Consider time before actual handover and bank interest on the money you'll pay before taking over the flat/apartment/property from the developer.

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