Procedure to Buy an Apartment in a Building under Redevelopment
For redevelopment/renovation projects, the preference for the house allotment is given to existing members of the housing society first and then, the houses which are left out are sold to new buyers; for which the buying procedure remains the same as for any other flat/apartment in any other building.
Some of the aspects taken into account while buying a home; be it a new project or a renovation/ redevelopment project are:
1. Legal Aspect:
The most necessary and essential part to consider while buying an apartment in either an old society or a redeveloped one is to confirm whether the seller owns the property and has the right to sell the same. Also, it is essential to verify whether the renovation/redevelopment project is legal and it has been approved with the appropriate sanction plans.
2. Payment/Finance Plan:
While buying a property, there are certain payment methods which a buyer is made to sign up for; and while buying properties in a redevelopment project, a customer is expected to pay a lump sum at a time instead of paying in instalments.
One of the safest ways of payment while buying a property in a redevelopment project is to pay as per the progress in the renovation/reconstruction work instead of spuriously paying to fund the developer with the knowledge that the project has no proper head start.
The other ways are down payments and instalments; but, they expose the buyer to risks of being duped or cheated. Also, the customer can apply for loans and get finance for buying the property.
Then, there are a few more aspects of buying a property in a redevelopment project such as Allotment Letter, which is given to the buyer from the builder and includes the various details of the property (here, apartment/flat) such as price, house number and other such things;
Sale Agreement which is a contract stating that the particular property has been sold to you while highlighting on other details of the apartment too, and it is advisable to thoroughly read through the contract before signing. The final step is registration and possession of the property where it is registered in the buyers’ name in the municipal records and which requires a certain amount of stamp duty as a tax to the government to be paid.