A Project Report On

Consumers Perception and Expectations while Buying a house

Submitted in partial fulfillment of requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY NEW DELHI

HMR INSTITUTE OF TECHNOLOGY & MANAGEMENT, NEW DELHI-110036 (APPROVED BY AICTE, AFFILIATED TO GGSIPU, NEW DELHI)

Submitted by: Mohd Faisal Khan

Submitted to: Ms Guneet Kaur

Enrol. No.: 07213303909

Designations:

Certificate

STUDENT DECLARATION
I hereby declare that the Project Report conducted at EARTHCON CONSTRUCTION PVT LTD under the guidance of Ms. Nitika Nair submitted in partial fulfillment for the requirement of the degree of MASTER OF BUSINESS ADMINISTRATION To Guru Gobind Singh Indraprastha University, New Delhi is my original work & the same has not been submitted for the award of any other degree/ diploma/ fellowship.

Place:_____ Date:______

Sign__ Student Name

ACKNOWLEDGEMENT
My sincere thanks to faculty supervisor Ms Gurneet Kaur and Ms. Nitika Nair under whose guidance and kind cooperation I was able to complete the project work titled

Consumers Perception and Expectations while Buying a House

All those employees of EARTHCON CONSTRUCTION PVT LTD. deserve special thanks for their cooperation and help in the collection of necessary and relevant material for this work. Also, I do thank and remember my friends for their effort and helping hand. Every effort has been made to enhance the quality of work. However, I owe the sole responsibility of the shortcoming, if any, in the study.

_______________________ Mohd Faisal Khan

Letter of authorization

Table of Contents
Chapter No. CHAPTER 1. 1.1 1.2 1.3 1.4 CHAPTER 2 2.1 2.2 2.3 2.4 2.5 2.6 CHAPTER 3 CHAPTER 4 4.1 4.2 4.3 CHAPTER 5 Title Page No.

INTRODUCTION
Executive summary General introduction Industry profile Company profile

RESEARCH METHODOLOGY
Objectives of the study SCOPE OF THE STUDY Research Design Sampling Design Sources of Data Collection Limitations of the study DATA ANALYSIS & INTERPRETATION FINDINGS & RECOMMENDATIONS Major findings Recommendations Conclusion

BIBLIOGRAPHY

Chapter 1 INTRODUCTION

1.1

EXECUTIVE SUMMARY

I started my project on 1st June, 2010 in Earthcon Constructions Pvt Ltd (A Real Estate Company) and was asked to study The consumers perception and Expectations while they go to buy a house. I was asked to collect the information related to real estate and the information needed to buy or search property from the people who can really have experience of purchasing property or want to buy house or property. For that I targeted to meet and call people who were doing jobs at top levels in various organizations. I collected data from Delhi and NCR region. First of all I prepared the questionnaire according to the job given to me. The objectives of my questionnaire are as follows Finding the consumers perception while they goes to buy a house. Finding the expectations of a consumer when they goes to buy a house. Finding all the solution to their perceptions and expectations. A secondary objective was to gather information about what customers want from real estate developer and Regulatory body working in Real estate sector. I started my survey from Centre Stage Mall and Great India Place, Noida sec-18. I collected data of 100 people which has helped me to find out their perception and expectations. Few of them are as follows People do not have a well defined expectation from the Developers. People are not aware about the process of buying a house /property. People are not aware of the legal and technical documents which they should check while buying or searching house/property. Whatever information builder provide to customer in there broachers are condition based and customer does not understand it in same way. Builders not selling their project directly to END User. People do not know much about the Real Estate sector.

1.2

General Introduction

SUBJECT MATTER OF THE PROJECT:

Q1) What is the meaning of customers perception & expectations while buying a house? Whenever a person goes to buy a house, he is very confused. At that time he doesnt have a clear cut vision of, whether to go for this builder, that builder, which place, genuine price and various other factors. So at that time what is there in the mind of the consumer and what all things he is expecting from the builders, etc . Q2) Why study of consumer perception and expectations? Real estate sector is a vital section of Indian market structure. Since a lot of opportunities are available in the real estate sector so there are a lot of companies and Project developer are operating in Indian real estate sector. Then at this junction the understanding of perception and knowing the expectations become very much important. So after finding the reason of all these we can provide maximum satisfaction to customer. Q3) Why did I choose Earthcon Constructions Group? The work culture at Earthcon Constructions is based on the fundamental belief that employees are its most important asset. Respect and genuine concern for each employee in the organization is the basic principle on which the organization functions. They believe that by giving mutual respect, recognition, trust, open communication, transparency and opportunities for growth, employees will perform to their fullest potential and will be sincere, dedicated and committed to their jobs. Earthcon Constructions offers to their employees a wide range of benefits to make work and life more enjoyable, this includes monetary rewards in recognition of excellent work.

1.3

Industry profile

REAL ESTATE IN INDIA

The size of the real estate industry in India is estimated by FICCI, to be around US$ 12 billion. This figure is growing at a pace of 30% for the last few years. Almost 80 % of real estate developed in India, is residential space and the rest comprise office, shopping malls, hotels and hospitals. This double-digit growth is mainly attributed to the off shoring business, including high-end technology consulting, call centres and software programming houses which in 2003-04, is estimated to have accounted for more than 10 million square feet of real estate development. This is the ideal time to invest in the country as policy makers have begun to emphasize on developing adequate infrastructure for the country. Real estate companies would also do well to maximize their own performance and operational efficiency. The future of the real estate sector in India is going to be guided by two important factors, namely suitable amendments in the Foreign Direct Investment (FDI) guidelines in townships, housing, built-up infrastructure and construction development projects as well as abolition of Service Tax on the construction industry especially the housing sector. Conversely, if the abolition per se is not possible then drastic modifications in the existing Service Tax norms is the need of the hour. This Sector is already overburdened with taxes; any further imposition of taxes in any form would adversely affect the growth of this sector of the economy. The importance of the Real Estate sector, as an engine of the nations growth, can be gauged from the fact that it is the second largest employer next only to agriculture and its size is close to US $ 12 billion and grows at about 30% per annum. Five per cent of the countrys GDP is contributed by the housing sector. In the next three or four or five years this contribution to the GDP is expected to rise to 6%. The Real Estate Industry has significant linkages with several other sectors of the economy and over 250 associated industries. One Rupee invested in this sector results in 78 paise being added to the GDP of the State. A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times. If the economy grows at the rate of 10% the housing sector has the capacity to grow at 14% and generate 3.2 million new jobs over a decade. Furthermore, this sector has witnessed a spurt in demand not just in residential property but also in commercial property. A fast growing area is the I.T. and I.T.- enabled services along with the BPO boom. Estimates worked out show that 42 million sq. ft. of space will be required every year till 2008, only in I.T. and I.T.- enabled services especially in the cities like Bangalore, Chennai, Hyderabad and

Pune which is also now gradually shifting to North India. To achieve the much desired growth and development in the Real Estate Segment, FICCI would like to submit the following 10 points for consideration: Infrastructure Status to Housing: Infrastructure status should be provided to housing sector. This will enable easier access to low cost institutional funds as also allow the sector to tap long term funds. Real Estate Mutual Funds: The Government should consider setting up of Real Estate Mutual Funds/ Investment Trusts to provide the much needed support to the cash starved housing sector, similar to the structures adopted for Estate Mutual Funds/ Investment Trusts in developed real estate markets such as, USA, Singapore. Hong Kong, etc. Real Estate Mutual Funds/ Investment Trusts would be an efficient mode for providing equity financing as against debt, which is currently the norm for financing real estate developments in India. Stamp Duty: In some States the Stamp Duty is as high as 14- 15 % of the value of the transaction. Astonishingly in the Indian context, not only are the rates high, but also the levy of Stamp Duty is applicable in every subsequent transaction, be it the initial transfer purchase of land or on further sale of the same land after development or any other succeeding transaction. Opportunely some states have brought the Stamp Duty down to between 6-8 %, this should ideally be further brought down to 2-3 % and made uniformly applicable across all states. However, if the above suggestion is not acceptable then if stamp duty has already been paid on one transaction, there should be a mechanism in the law, whereby there is a provision for concession or a system of credit for any subsequent transactions. This would avoid the resultant cascading effect of Stamp Duty, thereby reducing the cost of a property. The concept of credit for taxes paid on subsequent transactions already exists in other statutes such as CENVAT, VAT, Minimum Alternate Tax (MAT), etc. Public Private Partnership: There is a need to evolve a regulatory framework that encourages participation of the private sector in bringing technical and managerial expertise in formulating and delivery of basic amenities like water, sanitation, sewerage, transport and electricity. Archaic Laws: Availability of land for housing projects has been constrained by a variety of laws like the Rent Control Act and Urban Land Ceiling and Regulation Act, which must be repealed in all the States. A necessary legal and policy framework has to be put in place to restrict growth of slums and at the same time to re-develop the slums into hygienic and livable. Foreclosure Laws: The existing foreclosure laws are cumbersome as well as time consuming and make it practically impossible for Housing Finance Institutions (HFIs) to repossess a dwelling unit financed. HFIs are reluctant to take risk and continue to land primarily on salaried urban borrowers. Amendment of (National Housing Board) NHB

Act has already been initiated. The implementation process needs to be expedited to bring in the required changes. Environmental Impact Assessment Notification: The notification specifies that no construction activity to be taken up, inspite of the approval of plans by the Competent Authority, till the environmental clearance has been sought. In cases where approval has already been granted it is suggested that construction activities should be allowed. In the intervening period the builder / developer can obtain the environmental clearance certificate. In the case of the environmental clearance certificate being denied then appropriate action if necessary and warranted can be taken against the developer / builder and builder be given time to get clearance before he applies for completion certificate, otherwise the completion certificate will not be given Furthermore, in the case of future proposed projects the environmental clearances should be taken by the States themselves or by the planning bodies and not b individual builders. Land Acquisition: The Land Acquisition Act of 1894, still, to a large extent, governs the procurement of raw land. With the changing investment scenario it has become necessary to review the existing law, in order to ensure that private developers and colonizers procure the land directly from farmers and land owners without putting undue financial burden on State/ Central Governments on land acquisition for public purposes. Today, a builder is governed by Agriculture Land Ceiling Act even after the land have been urbanized in the zonal plans / master plans. This makes builders to create several companies in order to circumvent the archaic laws. It is submitted that once the land has been urbanized and incorporated in the master plan, then Agriculture Land Ceiling Act should not apply and builders should be permitted to acquire lands as per their requirements, for the development of townships. Foreign Direct Investment (FDI): Suitable modifications in the FDI guidelines are required, particularly in repatriation of funds, clarification on the basic definition of built-up area, streamlining of Clearance procedures as well as the opening up of the Retail Segment to FDI. This aspect has been discussed in detail in Section II of this paper. Service Tax: Service tax in relation to construction of residential complexes having more than 12 houses have been proposed to be introduced as a new service. However, no rationale has been provided for exclusion of services in relation to construction of residential bungalows, which may not form part of residential complexes.

1.4

Company profile

2)

REVIEW OF LITERATURE:

NEED OF REGULATORY BODY IN REAL ESTATE

Now a days many people are cheated by builder, and since builder are big gun so very few people get justice against builder. It Raises a question - Does our constitution really needs the law. NO!! We already have unlawful Activities (Prevention) Act 1967 and TADA in 1987. `Similarly we have laws but........the same story. Nobody cares/dares it. A question arises that- Do we need RBI or SEBI. How many people (individuals) participate in investing or reaping money from shares/bonds/MF, etc. may be 40% maximum. Its a different issue that 70% of the people get affected due to share market result. Similarly in today's real estate may be 50% of Indians get affected directly but 90% indirectly. You know the real cause of recession. Its again the same real estate sector in The US and of course some mortgage problem. Actually we need to understand where a regulator is needed and where not. Three basic needs Food, Clothing & shelter - Roti, Kapda and Maakan. Now everybody knows Regulatory body in Food and Beverage is really important (not in India - so Pepsi and Coke are doing business - poor us, 1st world countries do have). We don't have as such a proper regulatory authority for Clothing (as it is cheaper here - look at any 1st world country, they have). About home....... a dream of every man - whether rich/poor black/fair.... it takes whole life to get a home. 65% of Indians have their own home at age of 62. Comparing with a shirt or a burger........... This is really BIG. It doesn't mean that earlier two is less important....... what I mean to say is that MAKAAN is no lesser important. You invest once and thats huge. Govt. advertises about checking food quality, prices of a commodity, and problems with auto, electrical equipments, and credit cards and........... But I haven't seen this effort to educate people about real-estate aggressively. What to do if you are at problem with your builder, what is map approval, how can a common man get it, what is mutation, why is it important, - really more important to any man than running after some credit card inflated bill or some inflated charges taken by Big Bazaar - sort of problems. Money market is needed to be regulated because it is the backbone of our economic system. The amount of business real-estate industry is generating can't be no-longer ignored. After 2001, probably everyman directly or indirectly is associated with real-estate sector

(see the investments in Infrastructure bonds only). After IT and ITES industry, real-estate sector comes next in terms of people employed. The value of stake holders in this sector is no lesser than 90%. The involvement of more than 50% of the population (public representatives) makes a govt. Why not a industry. People within (i.e. employees) and outside (investors, buyers, and share-holders) if moderated by a central agency like RBI (I name it RERBI - Real Estate Regulatory Body of India), then life for everybody in INDIA might be safer. Fallout of real estate boom: The boom in the real estate saw emergence of many builders, who played upon the emotional side of human nature to own one's own dream house, commercial space etc. Besides the ever rising prices of the houses/flats etc attracted many to invest in the real estate with a hope that their money will give the best returns if invested in the real estate sector. The interest of the consumer in the real estate lead to heavy bookings of the buildings, innovation of the concept of pre-launch bookings, the flats/commercial space were sold while at the drawing board stage. The consumer never bothered to check the credentials of the builder, sanctions by the competent offices etc. Instead the consumers were led by alluring advertisements issued by the builders, promising delivery of possession of constructed building/flat within the stipulated time. The builders promised refund of money immediately on cancellation, some of them also promised assured returns by way of rent. After the bubble has burst, needless to say, the promises of the builders have gone for six. The purchaser/consumers have paid the entire sale price/major consideration and they are under debt of bank/financial institutions, savings have evaporated and there is no sight of completed building. The promising builder has vanished or has started avoiding calls; request for refunds, delivery of possession is unheeded. Instead some builders have the audacity to demand more money on account of alleged escalation cost with a remote possibility of possession being handed over to them. What do poor and harassed consumers do in such circumstances. I need to emphasize consumer is not helpless and should not allow the builder to run over him. He should fight for his right, the law of land supports him in this regard. The Consumer Protection Act, 1986, will come to the rescue of such erring builders and will force the builders to pay compensation to the consumer, hand over the possession of the flat booked/alternative flat in the same locality and will ask to builder to bear the cost of escalation, if any, on account of rise in price of constructing a building. The purchaser/buyer is a consumer within the meaning of the above mentioned Act and failure of the builder to hold on to the promise made at the time of booking in delivering possession etc would constitute deficiency of service. A cheated customer can lodge a complaint with the consumer forums pointing out the deficiency of services by the builder. A consumer court is divided into three forums namely, district forum, state commission and National Commission. Where the value of the property is less than twenty lakhs, the complaint will be filed in the District Forum. Where the value of the property is more than twenty lakhs but less than One Crore the complaint will be filed before the State Commission and where the value

of the property is in excess of Rs. One Crore the complaint will have to be filed in the National Commission. In the matter of DLF Universal Ltd Vs Brig (Retd)Kamal Sood, the National Commission, reported as MANU/CF/0069/2007 was faced with a situation, wherein the consumer was led by the advertisement of the builder of delivery within stipulated time and consequently on the failure to deliver, the builder contended that government permissions, such as approval of zoning plan, layout plan and schematic building plan were not given, thus the delay in construction should not be a ground for grant of compensation to the consumer. The consumer was further burdened with the escalation cost due to such delay. The Honorable National Commission observed that it is unfair trade practice on the part of the builder to collect money from the prospective buyers without obtaining the required permissions such as zoning plan, layout plan etc. It was further held that it is the duty of the builder to obtain the requisite permissions or sanctions for construction etc in the first instance, and thereafter recover the consideration money from the purchaser of the flat/buildings. The National Commission further observed that if there is any express promise that the premises would be delivered within the stipulated time and if it is not done so, escalation cost is required to be borne by the builder. In another matter titled as Veena Khanna Vs Ansal Properties and Industries limited, reported as III (2007) CPJ 185(NC), the National Commission set aside an order of the State Commission, wherein the builder was directed to refund the money to the consumer along with the interest @ 13%. In the alternative, it was directed that if the builder chooses to hand over the possession of the flat, the order of refund with interest will not come in operation. The builder taking advantage of the order refunded the money, because of the rise in the prices of the immovable properties. The National Commission observed that refund of money with interest at bank rate does not mean that the complainant is adequately compensated for delay in construction of flat by the builder and not delivering the possession of the flat. It was noted that because of the delay in construction and delay in deciding the matter it is practically impossible for a consumer to purchase a flat at the market price. It was held that it was the duty of the state commission to direct the builder to deliver the possession of the same flat or flat of similar size to the consumer with compensation for delay in delivering the possession. Or in any circumstances, adequate compensation ought to have been given so that the complaint could purchase a new flat of the same size at the prevailing market rate. Mere payment of interest is not an adequate compensation.

10 informations of how to buy a home or property:

1. How do I buy a house? Be an informed consumer; buying a house is one of the most complicated and expensive purchases you will ever make. As with most other things, you get what you pay for. Look at and compare many houses in different areas. Once you have seen something you like, assess its location. How far will you have to commute? What is the traffic like? How does the neighbourhood look? What services are available? How good are the local schools? Will you be able to get your children into them? What is the crime rate in the area, and what types of crimes have occurred in the past couple of years? Visit the home on multiple occasions and at different times of the day. Remember: location, location, location. It's one of the biggest factors in setting the price of the home. Before you make a written offer, know exactly what you are buying and what the costs will be after you own it. For example, in addition to the monthly principal and interest payments that you will have to finance the purchase of your home, you will need to budget for utility bills, property taxes, and insurance and maintenance costs. If you buy a home that has a homeowner's association, you will also have to pay association fees. Some homes have special assessments in addition to the regular property taxes. Make sure that you ask the seller for copies of the past years" bills for these services, and that you inquire as to whether there are any assessments scheduled to be placed on the property in the future. Also, check the condition of the house and any appliances, window coverings and other items that you want included in the sale. Consider purchasing a home warranty. For a minimum fee, the home warranty company will insure that the house and the appliances are in working condition. Many companies will provide coverage for washers, dryers, pools and pool equipment, air conditioning, and some roof repairs. Your agent or escrow holder can provide you with information on these policies.

2. Do I need a real estate agent or an attorney?

An experienced local real estate agent can assist you in finding a home that meets your particular needs. He or she will also have information about the home and area that an outsider would never find just by looking at the particular home. Most homes are listed for sale by a real estate broker who is referred to as the seller's agent. The seller's agent represents the seller. The agent who helps you find the home is called the buyer's agent. Usually you will not have to pay your agent a fee for the time and energy he or she spends in finding the home and assisting you in closing the sale. The buyer's agent's fee will be paid by the seller when you complete the purchase of the home. Your real estate agent will also assist you in negotiating the price, learning about the community, obtaining a loan, inspecting the home, and in closing the escrow. In some instances, a real estate agent can represent both the buyer and the seller. This is referred to as a dual agency. This must be disclosed to you before you make an offer. It is advised that you proceed carefully in this situation, since your agent will be working for both the seller and you at the same time. If you are not sure that you understand all of your rights and responsibilities, it is advisable to see an attorney who is experienced in the purchase of residential real estate. An attorney can help you with legal and tax questions that come up during the purchase of the home, and can assist you in reviewing all of the documents and reports that will be provided to you in the process of purchasing the home. For more information on how to locate a qualified attorney, order a free copy of the State Bar pamphlet 3. What information must the seller provide us? In most cases, when you are preparing to buy a home, the seller must provide you with a Real Estate Transfer Disclosure Statement. This is a pre-printed form that lists many features or conditions about the home, the land, and the area where the home is located. The seller must list on this form any possible problems he or she is aware of that might affect your willingness to purchase the home. This includes, for example, easements, rights of others to control how you use the property, environmental problems, nonfunctioning equipment, zoning and building violations, and special assessments. The seller's agent must visually inspect the home and report all facts that he or she feels might affect your decision to buy this property. If you want information that is not covered in the Real Estate Disclosure Statement or additional information that is disclosed, put your questions in writing and ask the seller to respond in writing. You should review the Disclosure Statement immediately and carefully. In most instances, you will have a limited period of time to decide whether you wish to proceed with the purchase despite the stated disclosures. Depending upon your purchase agreement, some sellers will require a written acceptance of the conditions contained in the statement. Other sellers will consider your silence as acceptance of all of the conditions contained in the Disclosure Statement. If you buy a condominium, the seller must give you copies of the home owners association's rules and bylaws, and financial statements, and must inform you if there are any unpaid assessments. You should also ask

to see the past minutes of the association board meetings. You might find that there are pending or future lawsuits or defects in the construction of the complex being discussed in these meetings. All of which would affect the value of what you are buying.

4. Should the house be inspected? Before buying any property, it is advisable to have it inspected by trained specialists. The kinds of inspections you need depend on the location and condition of the property. For example, in a hillside area, you might want a soil stability inspection. If you are buying a home built before 1978, you should seriously consider an inspection for lead-based paint. At a minimum, you should have the home inspected to determine if it is structurally sound, a pest control inspection to see if the house has been infected by termites or dry rot, and a natural hazards inspection to see if the home is located in an area subject to fire, earthquakes or flooding. The real estate agent can advise you about additional inspections that might be warranted under the circumstances. Keep in mind that while the seller has to tell you about anything he is aware of that is wrong with the house, he is not insuring the quality of the house; for this reason, and an inspection is a good idea. 5. How do I make an offer on a house? Most homes are sold through real estate agents who have expertise in valuing homes. You can also get information on home sales in your area by visiting a host of Internet sites provided by professionals in the industry, or by reading the real estate section of your local newspaper. Once you have found the home of your choice and have determined how much you are willing to pay, you need to make a deposit (called earnest money) to show the seller that you are serious about buying the house. The deposit is considered a down payment on the price of the home. In some instances you may have to increase your deposit or increase your offer, especially if there are multiple offers on the home. The deposit is usually deposited in escrow upon the acceptance of your offer. You submit a written offer on a form known as the Residential Purchase Agreement and Receipt for Deposit. This form sets out the terms upon which you are willing to purchase the property. The price you offer on a home will, in most cases, be less than the amount you will need to purchase the home. There will be expenses incurred in purchasing the home that will have to be paid by either the buyer or the seller. These include, for example, title reports, document preparation, recording fees, local taxes, fees for inspections, escrow fees, homeowner's insurance, and notary fees. Ask your agent or escrow officer to provide you with an estimated closing statement. This will give you an idea of some of the additional costs you will incur in purchasing your home. You do not want any surprises.

6. What is a Residential Purchase Agreement and Receipt for Deposit? This agreement is an offer which, upon acceptance by the seller, results in a binding contract. It should cover all of the important terms of the sale. For example, it should include a complete description of the property and of any personal property that will be sold with the house, such as window coverings, kitchen appliances, washers and dryers. It should state the exact purchase price, including the amount of your initial deposit, any increases in that deposit, the amount you will pay in cash, check or wire transfer, and the amount you will need to finance to complete the purchase price. This agreement should also list any conditions that may allow you to back out of the contract. You will want a condition that allows you to cancel the contract if you cannot obtain a loan on favourable terms or if the inspections reveal substantial defects or problems with the home. You may also need a condition that allows you to cancel the sale if you cannot sell your current home. Please understand, however, the more conditions you have, the less likely the seller is to accept your offer. This agreement should also set forth what will happen to your deposit if you cancel the sale, what will happen if you and the seller have a disagreement over the terms of the sale, and how the brokers will be paid. The agreement should also indicate whether you are purchasing the property in "as is condition" or the seller is warranting the condition of the property. Take the time to go over each and every term of the agreement with your agent before you sign the agreement. 7. How can I get a loan? Most home loans are made by financial institutions such as banks, savings and loan associations, and credit unions. Other sources of loans are insurance companies, mortgage bankers, finance lenders, mortgage loan brokers, pension funds and investment trusts. Lenders charge different fees and offer different interest rates so it pays to shop around. Your agent will be able to recommend lenders in your area. When you apply for a home loan, the lender will check your credit rating and review your past employment, income history, and credit and debt obligations. It will also obtain information about the property that will be security for the loan. This will include an appraisal or estimate of the fair market value of the home, a review of the preliminary report prepared by the title insurance company to determine what liens, easements and other conditions will be superior to its loan, and a review of any taxes, assessments and zoning regulations that affect the property. Some lenders will charge you a loan application fee, document preparation fee, appraisal fee and other fees to consider or close the sale. You should discuss these fees with your lender before you submit your application.

8. How should the title to the home be held?

Prior to the close of escrow, the escrow holder will ask you how you wish to hold title to your new home. How someone holds title will affect what will happen to the property in the event of the death of one of the owners. It also will affect whether certain taxes will be incurred or whether a probate of the estate will be necessary. You should discuss your options with a tax specialist and your agent before you make your selection. You can hold title to the home by yourself, as separate property, with your spouse, as community property, or with your spouse or a third party, as joint tenants or tenants in common. You can also hold title to the property in a family trust. For more information on the different forms of ownership, see the State Bar pamphlet

9. Do I need title insurance? Title insurance is necessary for your protection when you buy a home. It is, however, not a guarantee that problems will not arise after the close of escrow. When you make an offer to buy a home, you, as the buyer, have the right to choose the title company. This decision should be based on the local office's expertise, and the company's record for fairly handling claims under its policies. You should discuss these issues with your agent. Once you have chosen a company, you should make one of the conditions of the close of escrow clear title to the property. "Clear title" means that when the sale to you is completed, the title to the property will be free from liens, judgments and other claims that you have not agreed to accept. You should also discuss with your agent the need for a survey of the property and title insurance coverage for boundary line disputes. In many instances, especially in rural areas, boundary lines are not where they should be. A survey and survey coverage can help eliminate future disputes with your new neighbours. Before a title company issues an insurance policy, it will make an investigation to find out if anyone besides the seller claims to own the property. It will also search the public records for claims against the property. The title company will provide you with a report, called preliminary report. You should carefully review this report to determine if it describes all of the property you are interested in buying. You should also review this report and determine what items you are willing to accept when you purchase the property and what items you wish removed or taken care of as a condition of the close of escrow. If you are uncertain as to what the report says, you should discuss the matter with your agent, the escrow holder and/or your attorney. There are different kinds of title insurance available. Often the difference in cost for the better policies is nominal. "Basic" or "Standard" coverage is, in most instances, not the best policy available. For an additional one-time cost or no charge at all, you can obtain protection for losses resulting from illegal construction, zoning violations, unrecorded liens, prescriptive easement claims, and post policy forgeries. Be aware that different companies charge different rates. Discuss with your agent and the escrow holder what policies are available in your area and the differences in prices on each of the policies.

10. Congratulations! Whether you are purchasing a home for the first time or for the fourth time, the day of closing should be a cause for celebration. And since a portion of your purchase price is paying for the agents and the escrow holder's expertise, utilize their services throughout the process leading up to the day of closing. Ask questions; ask for an explanation of any item you do not understand. Request copies of any documents you do not understand; keep copies of all documents relating to the purchase of your home. And, if necessary, seek advice from a qualified real estate attorney or tax advisor. Asking questions during the purchase of your home will help insure that you and your family will enjoy your new home for many years to come.

Chapter

RESEARCH METHODOLOGY

What is research? Research can be defined as a scientific and systematic search for pertaining information on a specific topic. We define research as the systematic design, collection, analysis and reporting of data and findings relevant to a specific situation facing the company. The main aim of research is to find out the truth which has not been discovering yet.

2.1 OBJECTIVES OF THE STUDY

Project has mainly three following objective1. To determine the customers perception. 2. To determine the customers expectations. 3. To determine the problems faced by the customers while buying a house.

2.2 SCOPE OF THE STUDY:

The project undertaken makes me able to improve my professional skills and expertise. It helps me in getting an idea of Real Estate industry and its importance in our life. It increases my confidence on professional ground by dealing with high profile corporate that are very hard to convince. As for as companys benefit is concerned, this project helps company to know its market condition and level of competition. Also it helps in creating awareness to consumers regarding property documents and in promotion of their services. In order to accomplish the objectives of the project a survey has been conducted amongst customers of the real estate market. The survey is based on questionnaire filling method and limited to some parts of Delhi and NCR region. The survey is restricted to the information needed to show legal, technical and financial transparency between project developer and customer.

2.3 RESEARCH DESIGN:A survey research method was the basic research design. I interact with personally to people through questionnaire filling method. Questionnaire is having questions regarding the respondents basic information such as contact details, designation, what type of information they want from real estate project developer and Government, what type of documents they check while buying or searching property. TYPE OF RESEARCH: - Exploratory and Descriptive. Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps in determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist. Its seeks to find out how people get along in the setting under question, what meaning they give to their actions, and what issues concern them. The goal is to learn what is going on here? On the other hand Descriptive research is aimed to find the complete description about an existing problem or phenomenon.

2.4 SAMPLING DESIGN:Study of the geographical area comprising of Delhi , Noida and Greater Noida . It has tried to cover corporate offices of different industries in these regions. Generally I met with the employees related to the top management of the companies. The sample size consisting of 100 employees of these regions.

2.5 SOURCE OF DATA COLLECTTION:1. Primary data are collected through questionnaire and tele-call method which is design to keep in view the objective of the study. 2. Secondary data is collected through internet sources, research papers, published reports by various institutions and also from companies existing customers.

DATA PROCESSING:Daily data was entered into MS-Excel sheets. After the exhaustion of the specified geographical area this data was analyzed using SPSS () graphical and tabulation techniques. The data sheets mentioned here are attached in the annexure of the report.

2.6 LIMITATIONS OF THE STUDY:Un-availability of the desired personnel was the biggest constraint to this study. Although appointments were made and followed up where possible but still there were instances where the desired people were either unavailable or unwilling to meet. No prior information regarding the addresses or other details of the offices to be visited was provided, thus a few target persons were left uncovered. This project is completed in six weeks, so due to time constraints it was not possible to cover all the area of Delhi and NCR region and mainly Noida area was covered followed by Delhi. Some dealers were hesitating to give supportive data. Some of them ignored the questions which were supposed to be filled by them. Thus affecting the scientific accuracy. Since the data is not evenly collected from the NCR region hence there is a chance of biasness.

CHAPTER 3 DATA ANANLYSIS AND INTERPRETATION

Q) The professions of the people I met.. S.no: Profession type 1 Private service Frequency 74 Percentage 74 Cumulative percentage 74

2 3

Govt. service Business TOTAL

14 12 100

14 12 100

88 100 100

During the survey I visited many Offices, Malls and Houses to meet with People who can give me proper response of my questionnaire. I met with total 100 People out of which 14% people are/were doing Government services , 74% people are doing Private services and 12% people are doing business. My target was to meet service class people because they are educated and they are having capability of buying house or any experience of buying house or any property.

12%

14% 1 2 3

74%

70 60 50 counts 40 30 20 10 0 13

61

Series1 26 Series2 Series3

1 age group

I met with people having different age. But generally I choose to met people having age more than 35 years .Because they have bought house or they are in process of buying any house. The people I have met most people belong to age group of 35 to 45 years and having 61% and people belonging to age group 28 to 35 years having (least) 13%.People are in age group 45-55 years or more years are having 26%. Q: How much are you satisfied from real estate marketing information provided by real estate companies? Satisfaction Highly Satisfied Satisfied Neutral Dis-satisfied Highly dissatisfied Frequency 01 47 38 12 02 Percentage 01 47 38 12 02 Cumulative percentage 01 48 86 98 100

2% 12%

1%

1 2 47% 3 4 38% 5

With the help of above pie chat and table it is clear that majority (47%) of people are satisfied and very less proportion (1%) of people are highly-satisfied with the marketing information provided by the real estate companies. Many people who are satisfied with the marketing information provided by developer ,they were saying that Real estate companies does not want to share each marketing detail but also some real estate companies does not want to hide any marketing detail if customers asking about them. 38% people are neutral, 12 % people are dissatisfied and 2% people are strongly dissatisfied from the marketing details provided by the real estate companies. The reason of this strange result in simple languages is as followsBuilders do not give complete marketing information in their broacher. Marketing information provided by real estate developers is condition based. In the marketing information broacher, developers do not share the negative side of project. The paper work is a bit different from that of the actual work. We can make most of the customers satisfied by 1. Creating awareness about all the marketing details. 2. By asking the developers to provide each (negative and positive) marketing detail without any terms and conditions in their broacher. 3. By making the people aware of all the legal and technical documents which are needed while going to buy a house.

Q: What source of information do you prefer while buying/ searching for a Property? SOURCE Print media reference Brokers $ internet Tv and radio Others FREQUENCY 41 33 16 8 2 PERCENTAGE 41 33 16 8 2 CUMULATIVE % 41 74 90 98 100

45 40 35 30 25 20 15 10 5 0 1 2 3 4 5 Series1

The above Table and chart shows that most of the people prefer Print media (41%) and personal reference (33 %) for searching house or property. And other sources like Broker and internet, TV & Radio, Outdoor advertisement are having 16%, 8% and 2 % respectively. Many people say that search of property through internet is very comfortable. Because in a single click they can reach to a number of builders and their projects. They were saying that mostly internet property web portal shows only marketing detail of projects but if they will show legal and technical document of project so searching property through internet become more beneficial. Some people say that print media is better way of searching property because it is easily available at every where any time and also gives information about current status of project with marketing details. Many people were saying that buying or searching house or property through broker is not safe because of their dual nature .Generally they are making hype of the developers project and hide negative side of the project.

Q. Choose your preferable location and types of house you want to purchase? Location Noida Greater noida Delhi Gurgaon Frequency 41 37 18 4 Percentage 41 37 18 4 Cumulative % 41 78 96 100

LOCATION
45 40 35 30 25 20 15 10 5 0 Series1, 1 Series1, 2

percentage

Series1, 3

Series1

Series1, 4 1 2 locations 3 4

Majority of the people preferred Noida as the location (41%), then comes the no. of Greater Noida with 37%, Delhi with 18% and Gurgaon stands fourth with 4% . The choice of area depends on the monitory condition and the facilities available to people at a particular area. Most of the people want 2 BHK in Noida area with price ranging from 20 to 25 lakhs. the demand for 3 BHK is bit less and varies from 30-35 lakhs. the demand for 1BHK is not much. People want 4 BHK in the range of 40 to 50 lakhs. there is not great demand of Penthouses and villas in Delhi and NCR region. Most of the people who are doing job or having business who want to purchase 3 BHK or 4 BHK prefer luxury house.

Q: Is there any need for any regulating body in the real estate? In this question, majority of the people have a view that there is a need for some regulatory body which can have a continuous eye on the real estate sector. Very less people say the answer as No, and least no of people have No reply.

yes

1 2

Q: Do the Real Estate developers give possession timely? The answer of majority was not in favour. Out of 100 people, 76% said no to this. Whereas 20% said Yes and Rest (4%) Were in two minds . Response yes No Cant say Frequency 76 20 04 Percentage 76% 20% 04% Cumulative % 76% 96% 100%

1 2 3

Q: Do you think govt. takes necessary steps to provide house to the common man? Response yes No Cant say Frequency 26 68 06 Percentage 26% 68% 06% Cumulative % 26% 94% 100%

1 2 3

Majority said No when asked this question and comprised of 49.3% of the total answers, 32% said yes and 18% didnt knew where to go .

Q: What all documents you should look before buying house? Peoples are now very conscious about property document. They were saying that while buying or searching property they check property document, but since most of them do not know the all property document required to check thats why there is need to create awareness about property document and builders should show the entire property document to customers themselves. While survey generally people gave name of fallowing property document Link chain ownership document. Registry Map approval doc. Sale deed Paper shows approval from government authority Paper of agreement between buyer and seller No objection certificate (N.O.C.) Acquisition letter Payment receipts Power of attorney of land.

Q: What are your expectations from the web portal? The responses to this question were varied, like people said they They didnt know. They wanted Transparency. They wanted the Web portal to provide the complete information. Some said they want the timely information. Some wanted the Web portal to highlight the full information of the developer. Some even wanted all the legalities to be cleared by the Web-portals and then displayed on it. Q: What Problems have you faced while Dealing with the REAL ESTATE DEALERS..? There were varied Responses to this question Majority said that they wanted to get rid of the brokers. Some said they wanted the Developers to display their complete information on line and to the customers. There were people who wanted Hidden costs to be absent. Some wanted to get rid of the false promises. Almost all of the people wanted that the Developers should show transparency and provide them with each and every form of information which they wanted.

CHAPTER 4 FINDINGS AND RECOMENDATIONS

MAJOR FINDINGS
Most of the people are dissatisfied from the real estate marketing information provided by the real estate companies, but very few people are very strongly satisfied. 82% people are checking legal status of construction while buying/ searching a house. Some of the people check delayed delivery penalty clause while buying a property. 63% people want to check details of booking before buying or searching house.

Most of the people have chosen PRINT MEDIA & BROKERS as a source of information while buying or searching for a property. People who have chosen internet, print media, brokers, and personal reference as a source of information for searching house or property are more satisfied compare to the other sources of information. There is great demand of 2, 3 BHK house in near future in DELHI and NCR region. Most of the people chose information related to the property documents as their first preference compared to the marketing details of the project, past record of builder and new policies of govt. related to real estate sector. Most of the people wanted the government to make policies in terms of legal, technical and financial aspects which could create transparency in real estate sector. Most of the people know only the names of few property documents and they check only these documents while searching a property. A number of builders do not want to show the property documents to the customers.

4. 2 RECOMMENDATIONS
On the basis of my findings, I want to make certain recommendations as follows Recommendations to Earthcon Constructions Pvt. Ltd. First and foremost, the database generated through the project should be put to effective use through continuous follow-ups to the potential customers. A followup should be made on the industry potential as a whole as well. Company should provide information according to peoples need and necessity. And for that they can open daily polling on their web portal. Company should not always try to attract the new customers only, but should also take feedbacks from existing once, and try to remove their problems and learn from their experience. Company should make more contact with contractors and Architects to tap more builders. Recommendations to customer Customers should check all the legal and technical documents and not only the marketing details of the builders/project, before buying or searching house. Customers should go through all the terms and conditions of the project developed. Customer should be aware of the governments policy related to Real Estate. Recommendations to Project Developer (Builder) Builders should show their legal and technical documents to the customers, to make them satisfied because most of the customers want to check it and this also helps in creating a unique identity of the developers.

4.3 CONCLUSION:Now a days people who go for buying a house have become more aware about what they should look for and the information they should seek, and are more concerned about the selection of the right type of house for them. But majority of the people are still unaware of the documents which they should look for before going to buying a house. Here I have collected the perception and analyzed the expectations of the general public as a whole. The conclusion thus is that people need to be more aware of all the documents, the total legalities, and collect as much as information from the builders, and then only they can do their investment with a free mind. Thus because of the above reasons there is a need to create awareness among the customers as well as project developers to give the customers the complete information and the role of TRUSTED PROPERTY to educate people is appreciated in this regard.

CHAPTER 5 BIBLIOGRAPHY

Referred Books:
Kothari C.R. - Research Methodology New Delhi Tata McGraw Hill Kotler Philip Marketing management analysis, planning implementation and control. Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behavior", Prentice Hall of India 6th edition Singh HarpreetResearch Methodology-Kalyani Publishers.

Referred Websites:
www.4shared.com www.earthcon.com www.google.com www.indianrealestateforum.com www.indiatimes.com www.studytemple.com www.trustedproperty.org

(NOTE-All the information taken from you is only used for research purpose) TOPIC-Understanding the Consumers Perception & Expectations while buying a House. Name Profession- Govt. service Pvt. Service Business DesignationName of organization/Company. Contact No. +91-. Email. Age (in yrs) 25 to 30 30 to 35 35 to 40 More than 40 1) Rank the following detail according to their importance at the time of purchasing a property? (Rank1 to the most important, 3 to least) a) Property documents b) Marketing details of builder c) past record 2) Tick the options which match your preferable location and types accordingly? 1 BHK 2 BHK 3 BHK 4 BHK Penthouses Villas New Delhi Ghaziabad Noida Faridabad Gurgaon Others 3) For the above chosen option how much are you willing to pay? . 4) Do you think real estate developers give possession timely? a) Yes b) No c) Cant Say 5) How much are you satisfied from real estate marketing information provided by real estate companies? a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied 6) Do you think the govt. takes necessary steps to provide house to the common man? L o cTaytpieon a) Yes b) No c) Cant say

7) What source of information do you prefer while buying /searching for a property? a) Print media b) T.V. and Radio c) Internet d) Outdoor Add. e)Personal Reference f) Broker 8) Do you think real estate web portal bridges the information gap between real estate developer and customer? a) Yes b) No c) Cant Say 9) What all documents you should look for before buying a house? 10) What is your Expectation from the web portal? 11) What problems have you faced while dealing with the real Estate dealers? Thank you for sparing your precious time TrustedProperty.org 710-711, Devika Towers, Chander Nagar, Ghaziabad(U.P)- 201011. Phone No. 0120-4166001