How to Check Builders Reputation and Credibility

1. Quick Search - A quick search online will often yield the most pertinent details regarding a builder or real estate company’s reputation. You can also check with people close to you who are trusted and ask them about the company’s reputation. Real estate is a market that is closely followed by the media and news about developers and builders are often covered in the mainstream media. If the company you are considering has defaulted in the recent past, you will be able to find news of it easily and quickly. 

2. Check Track Record - The financial analytics company CRISIL allocates ratings to developers and real estate companies based on several qualitative and quantitative factors. The quantitative factors assessed include legal records of the company, and their delivery and financial strength. The essential qualitative factors assessed include market reputation of the company and safety records of the homes they have previously built. As a result, the CRISIL rating of a developer can often be one of the best ways to assess the builder’s reputation. The ratings range from DA1 (Excellent) to DA5 (Poor). The higher the rating is, the better is the builder’s reputation and past record.  

3. Check All the Certificates - Builders and real estate companies are certified by the International Organisation for Standardisation 9001:2008 certification, based on eight principles, which include customer focus and satisfaction. A builder or real estate company that has been audited and certified as ISO 9001:2008 is considered to be professional in their dealings and can be trusted by customers. It is a good idea to check whether the real estate developer or builder you are considering has been certified as such before dealing with them. 

4. Check Financial Stability of the Builder - Assessing the financial stability of the builder is a good way to assess whether the real estate company or builder you are considering is likely to default. You can easily get hold of a company's balance sheet since many companies publicly publish their financial details. Alternatively, you can approach the concerned Registrar of Companies (ROC) to access the builder’s financial records.  You can also log on to the website of the Ministry of Corporate Affairs where you can input the company’s CIN, ROC details, and registration number to access their financial records. Keep an eye out for the company’s cash flow details since a company with a strong cash flow is often more likely to finish projects on time. 

5. Transparency in Usable Space of an Apartment - If you are considering purchasing an apartment, it is important to go through the plans carefully. The plans will usually indicate the total area of the apartment and how much of the area is allocated to different rooms, washrooms, balconies, bathrooms, etc.