sk 15 March 2015

Precautions in buying in a sale bldg of sra project

What precautions should i take while purchasing an apartment in a sale building of a Slum rehabilitation development residential project in Central Mumbai. The builder/proposer has tied up with HDFC bank and says that he has obtained IOD and CC. One of the 2 SRA buildings is under construction. The sale buildings will be prepared as two phases. Slums in proposed phase 1 of the project are cleared. Second phase still has slums. Phase 2 is likely to get launched after 1-2 years. I have to yet see the agreement. What should i look in the agreement? What other things should i be careful about?

Thank You

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Adv Akhtar Ali Sheikh (Property Law Consultant) 15 March 2015

Be doubly sure, apart from verifying the title, IOD, CC, right to develop etc, pls try to find out about the integrity of the builder because if one is hell bent upon cutting the corner, no amount of paper checking will give you 100% fool-proof protection.

sk 16 March 2015

Thank You Adv Akhtar. The partner of the developer is well known in the area. There is no other way for me to find out. Past projects of the builder are descent.

Is there anything particularly that I should look for in the agreement? There are many people who have given the booking amount without reading the agreement. The agreement is not ready since the project is in pre launch stage. One thing nice about the developer is that he is blocking my chosen flat till I see the agreement.

Doesn't a tie up with a Bank like HDFC not speak enough about reliability of the builder and his approvals?

Thank You,Sir