By law no developer is allowed to sell homes to buyers unless he has got all the clearances. While the bigger developers tend to be cautious before announcing projects with pre-launch offers there are smaller players in the market who entice buyers with gifts and keys to the flats at lesser down payment. Often, the construction is delayed and such buyers are stuck with indefinite, incomplete projects. Bangalore citizens have witnessed such nightmarish offers and many home buyers are wary of pre-launch offers. However, not all developers can be clubbed with the rogue builders. There is a method to choose the right pre-launch offer. If you are interested in 3BHK apartments for sale in Marathahalli then read the fine print here before offering the first check and yet be an early bird with a good worm (home) offer.
Construction is always in phases
Real estate projects cannot be assembled easily no matter how many projects a developer has in various parts of the city. There are different phases and in most cases a builder will need funding as the construction progresses. The only way he can continue to get th funds and pour in the progressive construction activity is to get buyers interested in the under construction stage. For a few years now, sample flats offer a visual element to the home buyer to understand how the complete apartment will look. Look at any ongoing projects of apartments for sale in Marathahalli, Outer Ring Road which will have a sample flat of 3BHK or 2BHK as a ready reckoner. But this is not enough for a buyer to do any advance booking. The main things that should be seen are the documents that should be ready with the builder. Does he have the NoC to proceed with the project? Try to find out why some projects have been installed nearby. You will learn that the documents have still not been cleared although the work has started. The money that has been taken during the pre-launch has also been used and the project comes to a standstill. RERA has spelt out some rules regarding under construction activity by builders.
Look Before You Leap
The first thing to keep in mind here is that a developer by law is not actually allowed to collect money from prospective buyers before they acquire all the necessary clearances. However, due to the absence of any real estate Regulatory Authority, it is rather difficult to implement the law in practice. The developers always find a way to raise cheaper funds through channels of brokers and investors. After this easy money collection is done and yet the clearances get delayed, it delays the entire project and the project cost invariably inflates. In the worst-case scenarios, the projects are cancelled. Especially in newly developing areas, small builders acquire lands and try to sell off apartments as fast as possible to release the pent-up pressure of the already pending projects. But what will buyers do if they have their eyes on the 3BHK apartments in Marathahalli, and adjoining areas, for example, which are offering pre-launch discounts? Look before you leap at any cheap offer from the builder.
Advisory to keep in mind
- The records and reputation of builders should be checked. Even if the projects are delayed, at least one wouldn’t have to fear losing the apartment altogether.
- Documents should be verified before falling for a particular pre-launch offer, the IoD (Intimation of Disapproval) and CC (Commencement Certificate) being primary. IoD contains list of approvals from various authorities like departments of traffic, pollution control board along with a list of reasons stating why the project has been approved or disapproved. The CC contains proof that the builder is allowed to start the construction.
- Investing in a good lawyer specialised in property-related matters safeguards your investment.
- If the property is being purchased through bank loan, rely a great extent on the diligence carried out by the lender.
However, if you are ready to invest in pre-launch offers, you should also be ready to cope with the delay that might ensue. This is a necessary evil that one has to bear with, if the discounts really matter. Not many cases turn out to be unfavourable and one might actually find that the dream house is delivered right on time or as expected. Now that the areas of caution are known, feel free to invest in those lucrative 3BHK flats in Marathahalli or the luxury residential enclaves.