What is a builder floor and should you invest in it?

[ecis2016.org] A builder floor apartment building has only a few floors and is usually developed by the builder on its own, sometimes in collaboration with the land owner

Owing to rapid urbanisation, independent bungalows in big cities have given way to low-rise buildings, where multiple residential units are created on the same land and sold to different owners. Each floor has only one apartment unit, which is called the builder floor. In this article we would discuss the meaning of builder floor, everything you need to know about it and how it is different from multi-storey apartments.

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What is a builder floor?

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While most home seekers nowadays prefer high-rises, builder floors are preferred by those buyers and investors who want more independence than high-rise apartments and less maintenance than independent houses. A builder floor apartment building has only limited floors and is usually developed by the builder on his own, sometimes in collaboration with the land owner. Since group housing societies have certain restrictions and limitations, investing in builder floors is a lifestyle choice for home owners who want independent living space.

Builder floor vs multi-storey apartments

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While builder floors have a certain aspirational aspect to it, there are a number of drawbacks too. Such housing options do not have amenities such as gyms, swimming pools, security assistance, etc. The maintenance cost is greater in builder floors than in high-rise societies, as there are less people to share the burden in a builder floor complex. Also, in such buildings there is no separate upkeep team for cleaning or servicing purposes.

Builder floor ownership

The ownership of a builder floor unit depends on the buyer-seller agreement. The ownership of a builder floor usually comes with a proportional ownership of the plot. If the property is offered on lease basis, the plot ownership will be leasehold. The sale of a builder floor unit has to be registered and stamped, like any other property, at the sub-registrar’s office. However, some cities do not allow builder floor registrations. Buyers should not go ahead with such deals, as it will be deemed illegal.

Legal checklist for buying builder floor houses

• Conduct proper due diligence: Check the property’s title in the local registrar’s office and the approved building plan, floor area ratio and permits from the government.
• Check for the completion and occupancy certificates that ensure the property does not violate any local development laws. This is also necessary for electricity and water connections. Also, it is illegal on the builder’s part to offer possession without the occupancy certificate.
• If possible, hire a property surveyor to check the construction quality. The building’s age is also important, if you are buying a resale property.
• If you are buying a property from the existing occupant, check if all the dues are cleared before taking the possession. This includes water and electricity bills and property tax.
• Every unit should have separate facilities such as power and water connection.
• Verify the builder’s track record and reputation before making the purchase. You should also check the broker’s background before making a deal.
• Get to know the circle rate and base price for residential properties in the area you are buying in.
• Check other options in similar buildings, for property prices and amenities, before signing the buyer-seller agreement.

Pros and cons of builder floors

FAQs

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Source: https://ecis2016.org
Category: Lifestyle