Before you pay a deposit on a new home in Sri Lanka, ask the developer five things in writing: when you receive the deed, what you pay and when, how far the build has got, what the finishes are, and what happens if handover is late. These are the worries buyers raise most often when they ask each other for advice online. This is general guidance, not legal advice.
When will I receive the deed?
Buyers most often worry about the deed arriving late or not at all. Ask for the date and put it in the sales agreement, not only in a brochure or a message.
- Ask when the deed is signed and registered, and who pays the stamp duty and legal fees.
- Ask your own attorney-at-law to read the sales agreement before you sign. A developer's lawyer works for the developer.
- Ask what happens to your payments if the deed is delayed.
What do I pay, and when?
A price is only the start. Ask for the deposit, each stage payment and the amount due at handover, as a schedule you can keep.
- Ask which payments are tied to a building stage, such as foundations or roof, and which are tied to a date.
- Ask whether the price can rise after you reserve, and what the reservation fee covers.
- Ask what is refundable if you change your mind or the project is delayed.
How far has the building got, and can I see it?
"Under construction" can mean a cleared site or a finished frame. Ask for dated photos, and visit the site yourself.
- Ask for the approved plans and the building approval, and ask your attorney or an engineer to confirm they match what is being built.
- Ask to see a show unit or a finished building by the same developer. Many projects have no show unit, so a finished earlier project is the next best proof.
- Check the project page for construction updates and the date they were posted.
What exactly will the finishes be?
Buyers say the brochure can look better than the finished home. Ask for a written list of finishes, brands and fittings, and ask that the agreement says the home will match it.
- Ask for floor areas in the agreement, and whether they include shared walls and balconies.
- Ask who is responsible for fixing faults after handover, and for how long.
- If you can, speak to someone already living in a building by the same developer.
What happens if handover is late?
Delays happen. What matters is what the agreement says about them.
- Ask for the handover date in writing, and for any penalty or refund if it is missed.
- Ask what the developer will do if the project stops.
- Compare the answers from two developers. The clearer and faster reply is usually the safer choice.