10 Things to Consider Before Buying a Flat in a Redevelopment Project

Prior to purchasing a flat or apartment in a redevelopment project, there are many considerations to make.

Ghar.tv has listed 10 such important things to remember:

If you want to buy a flat or apartment in a redeveloped property, you must be familiar with the most current rules, regulations, and laws regulating the acquisition of such properties. Consequently, when it becomes impractical and dangerous for the tenants to continue in a residential building and they lack the finances to perform the required repairs, they choose to offer it to a developer for redevelopment.

If you choose to acquire a home in a redevelopment-bound project, it is necessary to comprehend what redevelopment entails.In such a project, the developer is responsible for reconstructing the old structure at his or her own expense in order to establish a new, better structure. In return, developers profit from the new property by adding more floors, bigger flats, modern facilities, and other incentives. In actuality, the developers provide alternate accommodation for the renters during construction. It is a circumstance that benefits both the residents and the developer. Residents get free improvements to their homes, while developers benefit from the new structure by charging a premium for the additional apartments.

However, the new structure must be constructed in line with the norms and sanctions of the municipal and housing departments.

However, before you sign on the dotted line, there are a number of important factors to consider when acquiring a home for rehabilitation.

Property Documentation

This is the most crucial component of acquiring real estate. These crucial legal documents enable you to verify that you are the legitimate owner of the purchased property. The buyer must ensure that the developer or seller provides the necessary legal documents, such as the allotment letter (important when applying for a mortgage), deed of sale, possession certificate, etc.

Title Checks

The developer or previous property owner must confirm the legality of the title documents and the transfer of ownership in the agreement.In addition, the seller must attest that the property transfer and transfer of ownership are valid and that all associated obligations have been paid prior to the transfer date. The contract must fully cover the purchaser against any title and possession issues. The agreement for sale must be recorded with the local sub registrar's office and subject to the applicable stamp duty.

Completion Timeline

The bulk of redevelopment projects need a minimum of 36 months, with a six-month grace period for extensions. Therefore, it is vital to define the specific timeline for the project's completion in order to provide funds for the acquisition. This is crucial if you are already renting and want to get a mortgage, since you would have to pay both rent and EMIs simultaneously.Knowing the anticipated completion date of the project will provide you enough time to organise your plans.

Possession Dates

When acquiring a new apartment in a redevelopment project or a resale property, a possession certificate is a necessary legal document that must be sought.The documentation demonstrates that the buyer has acquired property ownership from the developer or original owner.It signifies that the property and the buyer's interest in the property have been transferred for a monetary amount.If the developer decides to change the date of ownership, the purchaser may withdraw from the project and get a refund within 45 days.

Property Developer's Credentials

Determine the developer's reputation and track record based on the completion of past projects.This may be done by validating the developer's registration status on the official RERA (Real Estate Regulatory Authority) website for the state.In the event of a disagreement, purchasing a home from an RERA-registered builder entitles the buyer to a variety of protections.

RERA Checks

Check the official Maha RERA website to see if the developer and project parameters comply with the required building codes.The project must appear on the RERA Act 2016 list. Developers are required to update project information in a methodical and accurate way so that buyers may access it.

Legalities & Litigation

Inquire with prior residents and society members about any legal disputes between the developer and society members.The majority of legal issues result in time-consuming court proceedings, which may delay the completion of a project.

Due Diligence

Due diligence is necessary to check the land's title and the development rights associated with the project.Disputes or disputes over the land's title and associated development rights may impede redevelopment.

Payment Schedule

The 'time is of the essence' clause in a sales contract stipulates the deadlines for the seller and buyer to meet their respective obligations.The clause outlines the payment plan, the total amount due, the duration within which it must be paid, and, if required, the dates of instalment payments. This avoids ambiguity and legal concerns in the future.