BMRI focuses on fulfilling the necessary checklist while Purchasing property from a developer.
When buying property overseas you can purchase a residential or commercial property that is already built or purchase something that is under construction. If you choose something that is currently under construction there are several factors you should take into consideration before you make your final decision.
First and foremost is the developer’s reliability. Make sure that you make enquiries as to their record and reputation before making a commitment to buying property that they still have under construction. Find out what banks and financial institutions are funding their projects and talk to them to see if you can get a good understanding of the financial status of the developer. This will help you know if the developer is financially stable or if there is a risk of the developer going bankrupt before the project is finished.
If you have decided that you are going to buy the property that is still under construction from the developer you should hire a lawyer to prepare the necessary documentation and to make sure that everything is legal before you sign a purchase agreement. This process can include:
• Looking at the approved building plan. If it is for a commercial property the building plan should include the number of floors it will have. If it is for an apartment the building plan should have listed the floor that the apartment will be on.
• Checking to make sure that the developer owns the land where the construction is or if they have an agreement with the one that does own the property. If the land belongs to someone else the lawyer will check the title of ownership to make sure who owns the land. The lawyer should also check the development agreement the developer has with the owner of the property to make sure that everything is legal.
• Making sure that the property is legal for constructing residential or commercial buildings. It is illegal to build on land that is designated as agricultural.
• Making sure that the building byelaws for that area is applicable.
• If you are purchasing the property after looking at a sales brochure or if you have “an agreement to sell”, do the specifications match the construction being done?
• Checking to see, if applicable, urban land ceiling NOC (Non Objection Certificate) has been obtained along with the NOC from lift authorities, water, and electricity.
You should also check to make sure that the construction quality is first rate. Once the purchase agreement is ready to be signed you will pay approximately ten percent of the total sale price as a down payment.
About BM Group
BM Group (BM™) is a company established in early 90’s and is based in Mumbai, India. BM Group (BM™) serves for Property Development and Real Estate Consultancy of residential, commercial, warehouse, land, and retail leasing in different regions of Mumbai, Palghar, Thane, Ahmedabad, and Rajkot.
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