What is Home Inspection?
A home inspection is a limited, non-invasive examination of the condition of a home, often in connection with the sale or rent of that home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections.
What is the scope of Home Inspection?
The standard home inspector’s report will cover the condition of the home’s interior at the time of inspection such as electrical systems; walls, ceilings, floors, windows and doors, bathroom fitting and structural components. Things that cannot be inspected without invasion are usually not be covered.
Why do I need Home Inspection?
The single largest investment you ever make could be a home purchase. One would not want to face unpleasant surprises or unexpected difficulties with regards to that investment. You would want to know as much as you can about the new home before you purchase or move into it. A home inspection can identify hidden issues, need for repairs due to builders' oversight or replacement due to quality issues along with the need for preventive maintenance to keep the home in a good shape and avoid costly future repairs. Post home inspection, you will be more confident to take a decision, whether it is purchase, getting repairs done or preventive maintenance. In case you are looking to sell, it gives you an opportunity to make repairs that will get the house in a better selling condition and maybe even fetch you bigger bucks.
Can I do Home Inspection Myself?
Even if you are an experienced home buyer you may not have the required knowledge and tools to conduct a quality home inspection. There are things invisible to the naked eye but easily identifiable using tools and gadgets. Home inspectors are not only more knowledgeable but also carry the right tools to inspect the home. They know how the various components of a home come together to perform the tasks they are intended to and are conversant with various installation and maintenance requirements that you may not be aware of.
Home purchase is one of the most emotional decisions of your life. Even with the required knowledge and experience the emotional attachment with the investment may lead to bias and affect your judgement. A third party professional will be able to give you and unbiased opinion.
A home inspection report from an independent third party will give you leverage while negotiating with the other party in the deal.
When should I get Home Inspection done?
While there is no wrong time to get a home inspection done, it is highly recommended to be done at the following times for immediate benefits:
1. Before taking possession of a new Unit from the builder.
2. Before making a buy decision for a ready for possession or resale Unit.
3. Before putting up a property for sale or renting out.
4. Before renovating the house.
How much time does it take to perform Home Inspection?
A typical Home inspection takes about 4 hours. It depends on the size, type and location of the house under inspection. You can expect anywhere between 2 to 6 hours. Preparing the report takes approximate 2 days to ensure all details are captured properly and presented optimally.
Is my presence mandatory when Home Inspection is conducted?
Your presence is not compulsory but the following things need to be ensured from your end:
1. All required permissions and access (keys to home and all doors and cabinets) are arranged.
2. Utilities like water and power supply are received in time for a smooth inspection.
3. No valuable (except furniture and white goods) should be left in the home.
What do I do if the Home Inspection Report reveals issues?
No need to Panic. Issues can be of various types and severity. The report will clearly indicate the same and suggest the course of action, like repair or replace. At times the report will suggest to ignore the issue or to keep a watch for future problems related to observations made in the report. The information will help you take a decision and a good Home inspector will explain things to ensure you understand the importance and urgency, if any.
What if the Home Inspection Report doesn't reveal any issues?
Does that mean the Inspection was a waste? Not at all. Now you are more confident and knowledgeable about your home than before, and can take decision with more confidence. Whether you are a seller, buyer or someone who already bought the Unit the Home Inspection report will have valuable information for future reference.
How important is Home Inspection with respect to RERA?
Home Inspection before taking possession is a very good idea with respect to section 14(3) of RERA. The Home Inspection report can be a reference document for any defect encountered during the 5 year defect liability period. There is no document that points to the quality (or the lack of it) of workmanship and material used for the construction of your house. Home Inspection report gives evidence of the quality of workmanship and materials used, whether good or bad, which can be used by RERA to ascertain if the claims made in future are valid. It will reduce the time and increase the probability of getting fair judgement.
Even for the defects identified in the Home Inspection report if the developer is not agreeing to rectify the document will make it easy for you to lodge your complaint in RERA easy.
What is RERA?
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The bill was passed by the Rajya Sabha on 10 March, 2016 and by the Lok Sabha on 15 March, 2016. The Act comes into force in different states at different times. Maharashtra has brought the act in force on 1 May, 2017.
What are the primary objectives of RERA?
The primary objectives of RERA are:
Ensuring Transparency & Efficiency in real estate sector in regards to sale of plot, apartment, building or real estate project.
Protecting the interest of consumers in real estate sector.
Establishing adjudicating mechanism for speedy dispute redressal.
Establishing Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority.
What is MahaRERA?
Government of Maharashtra established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Notification No. 23 dated 8 March, 2017, for regulation and promotion of real estate sector in the State of Maharashtra, with its headquarters at Mumbai.
Which projects are exempted from registering on MahaRERA?
All commercial and residential real estate projects will have to register except in projects where
Area of land proposed to be developed does not exceed five hundred square meters.
Number of apartments proposed to be developed does not exceed eight, inclusive of all phases
Promoter has received completion certificate for a real estate project prior to commencement of this Act.
For the purpose of renovation or repair or re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area within Maharashtra, without registering the real estate project with the Maharashtra Real Estate Regulatory Authority(MahaRERA). Promoter of ongoing real estate projects, in which all buildings as per sanctioned plan have not received Completion Certificate, shall also be required to be registered for such phase of the project which consists of buildings not having occupation or completion certificate.
How can one File a complaint with MahaRERA?
Any aggrieved person may file a complaint with MahaRERA or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation or contravention of the provisions of this Act or the rules and regulations made there under. The Authority shall establish an adjudicating mechanism for speedy redressal of such complaints.
Any person aggrieved by any direction or decision or order made by MahaRERA or by an adjudicating officer may file an appeal before the Appellate Tribunal.
Any person aggrieved by any decision or order of the Appellate Tribunal, may file an appeal to the High Court.
How does RERA bring Financial Discipline in Real Estate?
The Act strives to ensure greater financial discipline in the real estate sector through its provisions as follows:
A promoter shall not accept more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale.
Seventy per cent of the amounts realized for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.
Withdrawal from such accounts shall be in proportion to the percentage of completion of the project, which shall be certified by an engineer, an architect and a chartered accountant in practice.
Promoter to compensate buyer for any false or incorrect statement with full refund of property cost with interest.
Project Accounts to be Audited / FY. Copy to be submitted to MahaRERA.
Provision for MahaRERA to freeze project bank account upon non-compliance.
Provision for stronger financial penalties for MahaRERA non-compliance.
Will RERA bring transparency in Real Estate transactions?
The Act shall drive great transparency in the real estate sector. Details of all the Registered Projects shall be available online for citizens including:
Sanctioned plans, layout plans, along with specifications, approved by the competent authority.
Proposed Plan, Proposed Layout Plan of the whole project and Floor Space Index proposed to be consumed in the whole project, as proposed by the promoter.
Proposed Number of building(s) or wing(s) to be constructed and sanctioned number of the building(s) or wing(s).
Stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.
Quarterly update of the list of number and types of apartments or plots, as the case may be, booked.
Quarterly update of the list of number of covered parking, garages booked.
Quarterly update of the list of approvals taken and the approvals which are pending subsequent to commencement certificate.
Quarterly update of the status of the project.
Such other information and documents as may be specified by the regulations made by MahaRERA.
What is section 14(3) in RERA?
Section 14(3) deals with Defect Liability Period. It states
"In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act."