What is a work order in a home loan?

A work order is an order placed by an individual claiming the purchase of specific goods or particular services. While dealing with property, a promoter or developer may make you sign a work order which would mean that you are going to bear the cost of furnishing and fittings.

From the aspect of real estate, a work order signifies the purchase of goods such as floor tiles, windows, bathroom fittings as well as the service to fit them into the property. A property dealer makes an individual sign the work order ensuring that he bears all the cost. When one signs the work order, the stamp duty and the tax levied on the property increase and as a result the value of the property increases. When one opts for a home loan, he needs to borrow a greater amount as the property value rises. In the case of a home loan, one must be very particular about documentation. Thus, when one finalizes the deal of property with the dealer, one should be aware of the difference in the work order and sale agreement.

While making a deal, one should always sign a sale agreement only. It is advisable to avoid signing a work order with the dealer. A dealer tries to make you sign a work order and most people fall into the trap due to their lack of knowledge. Thus, they end up paying an extra amount without the slightest clue about it.