Buying a flat on installments in Lahore: what to check first

1. Check the approvals yourself

Do not rely on a brochure, an agent or a line on a website. Ask for the building plan approval and the approval of the scheme it sits in, then compare them with the authority's own records. The Lahore Development Authority publishes lists of approved and illegal schemes on its website, and you can ask its office directly. A developer with the right papers will hand you copies when you ask.

2. Add up the whole plan, not the monthly figure

Take any plan and write out every payment. At IRIS Tower, for example, a 450 sq ft one bed is Rs. 74,250 a month, but that covers only 40% of the Rs. 7,425,000 price. The rest is Rs. 742,500 at booking, the same at confirmation, Rs. 185,625 every six months, and Rs. 742,500 each at grey structure and possession.

Ask yourself whether your income can carry the half-yearly months, as those are the ones that catch buyers out.

3. Find the area clause

Many agreements calculate the final price on the area measured at completion. Ours does too. It is fair as long as you know about it, but a unit that comes out larger costs you more. Ask whether the quoted size is covered or includes a share of corridors and lifts, and what happens if the difference is large.

4. Ask what premiums apply

Corner, park-facing and boulevard-facing units often cost extra, and a good unit shown in a sales meeting is frequently one of these. Ours is 10% on corner and main boulevard units. Get the exact unit number and the price with any premium in writing.

5. Treat the possession date as an estimate until it is in the agreement

Read what the agreement says about delay: is a date promised, and does the buyer get anything if it slips? Ask what happens to your remaining installments if construction falls behind. Visit the site every few months, and compare what you see with the stage you are paying for.

6. Ask about charges nobody mentions

• Transfer fee if you sell your file before possession
• Late payment penalty, and how many missed installments lead to cancellation
• Refund terms if you cancel, including any deduction
• Monthly maintenance after possession
• Possession, utility connection and registration costs
• Government taxes on the purchase; ask a tax adviser for the current rates

7. Check whether the price can move

Developers usually reserve the right to change booking prices for new buyers. Make sure your agreement fixes your own rate. Be careful with any promise of a guaranteed rental return or resale profit, and ask for it in writing, with the name of who is responsible for paying it.

8. Pay the company, and keep every receipt

Pay by bank instrument in the company's name, against an official receipt, and never in cash to an individual. Have a lawyer you hired yourself read the agreement before you sign it. The fee is small next to the price of the flat.

Holding us to the same list

If you are looking at IRIS Tower, go through this list with our team and ask to see the papers. You can contact the site office or see apartment sizes and prices first.