We are plannign to take a property in Chennai and the buider is Purvankara ( a reputed A class builder). The completeion date is May 2010. The loan amount is 40 lacs. We are looking at the ADF(full dispursement ) vs Tranche EMI otions.
Incase of full dispursement the builder has promised a discount of 8% which comes to around 4 lacs which is actually good as the loan amount itself is very huge.
But we are not aware of the further complications that might arise of full dispursement. Can any of you please guide us by answering the following questions:
1. In the worst case scenario that the builder stops the project, is there any guarentee that he would return s back the amount? 2. What sort of written documentation is required from the builder for making a full dispursement ? 3. Is there any legal binding for the same ? 4. Are there any existing home insurance policies which insure your under construction property against builders attrocities ? 5. Should we take care of anythign else apart from the normal care that we take when buying a house ?
It would be really good if you could answer my queries asap as we are planning to go for a loan in about a week. Thanks a lot .... Sandhya
