Things to keep in mind when buying Prelaunch Properties

The following details are only for information and does not imply or mean to be facts / guide and CleanDeed not assume to be responsible in any way. These are personal opinions for members of CleanDeed and request you to take proper legal counsel before investing.

Typically any Real Estate Project – Apartment, Villa or Plotting needs Land to owned, proper approvals sought and then Construction done. These stages involve a lot of monetary reserves to see light and with the growing demand, increasing prices of land and materials even best of Construction / Project execution houses face issues in completing the projects without delays.

Below are Few Pointers you might want to consider before investing:

  1. What are the current rates in surrounding projects.
  2. What are the future prospects of growth in that area.
  3. Has the Project Owner shared the Registered Sale Agreement of Land with you.
  4. Is the Project Owner new to the Market or has successfully completed Projects earlier – more importantly with Prelaunch Option.
  5. The Survey Numbers of the Land to be verified against Master Plan. Future Prospects usually depend on the Infrastructure Planned for the area – Roads, Commercial, Railway and proximity to Airport, SEZ, etc.
  6. Possession of Land is important – Name Board, boundary wall with gate etc imply that there are no impeding issues. However Legal Opinion is the best way to ensure Link Documents and possession is in place.
  7. Offer Rate: Ensure offer rate for Prelaunch is not too less than market. Good Deal is always better than impossible deal with which Project Owner may find it difficult to complete the Project.
  8. Extent of the Project and Number of Units: Ensure that the Project is placed correctly with Growth and Demand and will not be too difficult for Project Owner to sell the complete Project. Units sold slowly means project delays.
  9. Always prefer Project Owners who start the project after approvals and then move to another. Just to ensure funds from one project are not invested in another project. Always ensure to have an exit clause in case ou feel insecure – atleast till registration of land is done in your name – in lieu of payment made.
  10. Prelaunch Payment: Ensure that payment you make is always to a Current Account (atleast in part) and rest at the time of land registration – UDS (Undivided Share of Property) as specified by the Project Owner.
    If registering party is former Land Owner – suggest to request UDS on land with road access and to share contact details of all the parties involved in the UDS.
    If registering party is Project Owner – any part of Land for UDS should be good provided Project Owner ready to include you along with other buyers in a group or share contact details for all.
  11. If buying far from City, probably you will want to go for soil, water and air testing as well.

Having said so, please also keep in mind that Builders /Project Owners have a lot more stake in the project and there are many costs which cannot be put on paper – along with ever increasing prices of raw material, false demand of land which caused Project Land Pricing increase, delay in sale of units which cause breaks in cash flow. As such if you are told Misc costs or possible little delay in Project, you might want to cooperate with the Builder /Project Owner.

There are many issues, facts which Builder / Project Owner might not be comfortable sharing with you when you are End User. Suggest go through a reliable source – like CleanDeed 😉  – who you know can have your back and assure you of safety of your investment. Ideally, the source /agent would have done their due diligence and even if they dodge some of your questions, you can be sure of follow-ups and most importantly number strength to mitigate issues that might arise inspite of all caution.

Prelaunch – just as any investment carries a little risk and unforeseen complications – however when treaded carefully – a profitable way to secure affordable housing.

Comments are closed.

error: Content is protected !!