Every few years in India, we see new trends in the real estate forum. Just a few years ago, the phenomenon of “high-rise” skyscrapers was the hottest property trend. However, cities such as Mumbai, Pune, Delhi, Bangalore, Hyderabad, etc., are experiencing an exciting trend of ’independent’ floors, also known as builder floors. These residential units have become an excellent option for people who prefer living in low-rise apartments that offer privacy and convenience. This blog will highlight everything you need to know about what an independent builder floor means and the different advantages and disadvantages of builder floor apartments.
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What is an Independent Builder Floor?
As the title suggests, a builder floor apartment is a low-rise residential structure, which is usually the ground floor, first floor, and second floor. Every floor is one single residential unit. Such apartments are gaining popularity amongst people living in Urban Indian cities who are not impressed by sky-touching complexes and wish to have a private and quiet life. Unlike prominent residential societies, the builder floor is usually developed by the property owner by partnering with a real estate developer. In many cities across India, a builder floor is considered a better real estate investment due to many socio-monetary advantages!
Common Characteristics of Independent Builder Floor
Like any real estate trend, when something starts gaining popularity and traction, many others try to replicate it. However, when it comes to the builder floor, many characteristics are easily identifiable.
- Every residential structure is low-rise and restricted to 1 or 2 floors.
- Every builder floor apartment unit is spread across the entire floor of the structure.
- An Independent builder floor is not bound by restrictions that come with a much bigger cooperative housing society (CHS) or a similar legal body.
The Difference Between Builder Floor and Apartment
Many people do not fully understand what a builder floor apartment is, and how it is different from residential flats that one can purchase via a developer in housing societies. The difference between the two is vast, and it is vital that, as a property owner, you fully understand it and then make an informed decision.
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Ownership – When it comes to traditional flats or apartments, the property agreement only states that the buyer is only the specific residential unit owner. On the other hand, in a builder flat, the agreement between the landowner/developer may state that the floor buyer is also a part-owner of the plot. The property may be offered to the buyer on a lease basis, making it a leasehold agreement. Contrary to a popular myth, there is nothing illegal about independent builder floors. The buyer and seller have to register the property in the sub-registrar’s office like any other apartment.
Freedom & Independence – Another essential difference between a standard apartment and a builder floor is that having an entire floor provides more freedom and privacy to the buyer. Since any CHS-like legal body does not bind a builder floor apartment, the owner has more freedom to make use of and build the space as they wish to.
Maintenance – One of the disadvantages of a builder floor is that the cost of maintenance, repairs, and upgradation depends entirely on the buyer. In a cooperative housing society, these costs are lower as they are shared amongst different flat owners.
Amenities – While there is no limit on how many amenities a builder floor owner can have, it is generally observed that amenities such as a typical gymnasium, swimming pool, community hall, garden for children and senior citizens are absent in an independent builder floor flat. On the other hand, such amenities are standard in prominent residential societies, especially in urban cities such as Mumbai, Pune, Delhi, Bangalore, etc. Thus, the buyer must be ready to weigh both the options before buying.
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What to Check When Buying a Builder Floor?/ Legal checklist for buying builder floor houses
There have been instances of fraud, and many buyers have been cheated while purchasing builder floor properties. Since a builder floor tends to be significantly cheaper than other residential apartments, many buyers ignore due diligence before investing in an independent builder floor property. To avoid fraud, we have created the ultimate legal checklist that a buyer needs to check before purchasing a builder floor.
- The first thing to check- the plot’s title and verification if it is a clear title with no pending legal cases. The buyer can visit the local registrar’s office to access the floor plan, permitted Floor Space Index (FSI), area ratio, and other required permissions from the Government.
- Check if the development of the property is not violating any development laws of the city, the buyer can demand to see the Occupancy Certificate (OC) of the builder floor property.
- Check whether every individual floor has a separate, independent water and electricity connection.
- Conduct market research or check the builder’s reviews and the reputation of the developer’s earlier construction projects.
- If the residential units are already built, the buyer can choose to consult a real estate surveyor to confirm the quality of work.
- Check the Property Card of the land to know details about the property such as different loans (if taken) or previous owners, etc.
Pros and Cons of Purchasing a Builder Floor/ Things to Keep in Mind When Investing in a Builder Floor
As with any other investment, buying an independent builder floor apartment has some advantages and disadvantages.
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Pros of Builder Floor Apartments
- The buyer gets a private, spacious residential property without the considerable investment needed to buy a bungalow, villa.
- Each unit has a separate water, electricity connection, ensuring less dependency on others.
- Save costs such as maintenance fees.
- Offers a significantly more resale value in tier 1 and tier 2 cities in india such as Delhi, Chennai, Mumbai, Pune, etc.
Cons of Builder Floor Apartments
- Fewer amenities and added recreational spaces such as swimming pool, gymnasium, temple, garden, jogging track, children’s play area, etc.
- No dedicated people to take care of maintenance, water or electricity issues, etc.
A builder floor apartment has become one of the hottest real estate trends in urban Indian cities. People who do not wish to stay in a high-rise residential tower or large housing societies can purchase an independent apartment in a builder floor property. However, finding the best and legitimate builder floor properties can be difficult. If you need help with regard to real estate and property issues, contact the experts at NoBroker. Just click on the link below this article, and our representative will soon get in touch with you.
Read: Difference Between Flat and Apartment: An Overview
FAQ’s
Q1. What is independent builder floor meaning?
Ans. A builder floor is an independent apartment on the entire floor of a low-rise structure, being developed and sold individually. This is builder floor apartment meaning.
Q2. Is Builder Floor Apartment A Good Investment?
Ans. Yes, builder floors are a prevalent form of real estate investment and have gained recent popularity
Q3. Is it Safe to Purchase an Independent Floor Apartment?
Ans. Yes, if the property papers are clear and legitimate according to the Government laws, it is entirely safe to purchase a builder floor apartment.
Q4. What is the process of purchasing a builder floor flat?
Ans. The process of purchasing a builder’s floor is similar to any other residential property process. The buyer and seller have to pay the required government tax and get the agreement registered in the sub-registrar’s office.
Q5. Are Builder Floor Apartment Cheaper?
Ans. When talking about builder floor vs society flats, yes, in many cases buying a builder floor apartment could be cheaper than buying a ready-to-move flat.
