All you need to know about Redevelopement projects – Part II

We were discussing about redevelopment projects and how advantageous or disadvantageous they are. You can certainly go ahead and book a redeveloped project. You are required to consider these checks thoroughly before taking the plunge.

1. Consider a scenario where you are making up your mind to invest in a housing society who is in talks with a developer for redevelopment but there is no solid paperwork in place as of now. In such a stage, transaction is no different from buying a resale property. However, you must know in details the stage at which the discussion is with the developer and what are the considerable clauses they are wanting to put in the agreement.

2. Another scenario is buying a property that has already been scheduled for redevelopment but the building is not yet demolished. In such case, three parties get involved at once. The buyer, seller and the developer. The buying process and change of ownership should be done keeping the concerned developer in loop. You can take the possession at once and vacate the building later with other society members.

3. The third scenario is when you are buying a redevelopment project where the building has already been demolished and is yet to be newly constructed. That means the money has been transacted, the ownership is transferred but the property is not yet tangible. This is the most sensitive scenario. Here the buying process should be done with prior permission from both the developer and the society. The agreement should clearly mention the clause that the building is yet to be constructed and the agreement remains incomplete till new building is there in place.

4. The last point is ask for the intimation of disapproval (IOD) and a commencement certificate from the developer. Also check out if the property is mortgaged and clear with banks.

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