Precautions You Should Take Before Buying A Housing Plot

The temptation of having an independent home and also making healthy returns in case of the real estate prices shot-up later, is what makes many tempt towards the pre-launched housing projects - an area deemed risky by many experts. However, it is also not possible for many Indians to continue residing in the thick of the metros like Delhi, Mumbai, Bangalore, Pune and Ahmedabad, and therefore, they have no other option but to either start shifting into the suburbs, or at least plan doing that by advance booking the residential plots and apartments on the outer peripheries. And that is where dealing with the 'pre-launch' or 'future' schemes and projects becomes unavoidable; for they help the developers, brokers and the end-users, all.

But as the name suggests, these projects come with a share of uncertainty, and therefore, best suited being dealt with accordingly.  The risk mostly stems from the conceptual nature, which these projects would more often than not have, and also from the non-transparent legalities and the finances involved therein. Buyers need being extra careful, when deciding to take part in the speculative real estate. Following are the main areas one should keep in mind about the 'pre-launch' or 'future' schemes. All this information has been gathered online.

A note of caution: There is a lack of consensus about what truly constitutes a pre-launched offer. Should the housing plots, which have the builders ready with land documents, be exempted from any such categorization? The truth is, no housing would be made available to the plot owners for a good while, even if the land was being transferred in a legit manner, and therefore the project could still not be deemed underway.

The developers have started now to name their projects differently - such as 'future' schemes -  to avoid being trapped by the adverse opinion, which circulates regarding the pre-launch offers. We should, therefore, place all those projects under the same 'pre-launch' or 'future' categorization, which might not be delivering you any homes any sooner.

What Are The Pre-Launch And Future Schemes?

The developers would decide to launch their projects early, if and when they perceive a steep demand for their developments in future, and the lack of resources prevents them from starting the ground work early. The land is often not fully transferred into their names or the various requirements of starting the construction have yet not been met fully. A 'future' or 'pre-launch' is more often than not a hint of the undecided future.

Precautions You Should Take Before Buying A Housing Plot

1) Check out the various land records. Always get to the bottom of the land records and the property being proposed there. Make sure you had the 7/ 12 Utara of the land mentionibg the names of the sellers or developers. The land deeds are sometimes disputed by more than one claimants. A 7/ 12 Utara will alert you of the multiple owners, if any. It would also describe the sanctioned use for that land. A Non Agricultural (NA) status, for example, does not always provide you with the lisense of starting to construct. Check out more about the 7/ 12 land records here.

2) Make sure to have the land being purchased by you, leveled properly, so that it did not get flooded during the monsoon season. The land should also be able to withstand the structure you might be planning there.

3) A valuation research of the land would never be harmful to anyone. No use paying more for the same land, which was being resold at a lower price.

Find more about the precautions in finalizing land deals.

(To be updated)