Wednesday, 10 October 2018

Need advice on property buying

I need suggestion on buying a property in Hyderabad.

I am a first-time property buyer and I have planned to buy a property in Nandigama Village in Patancheru Mandal (Survey Number - 452). This is an 8 Acre venture under HMDA Residential Zone - 1 and two 30 meter roads are within 500 meters from the entrance of the venture. The developer of the project is Greater Infra (http://www.greaterinfraprojects.com/). This is still in pre-launch state and they are pricing very less per SqYd compared to other projects in the same area. I met them this morning. Following are the details that I gathered -

1. They already have acquired 2 Acres of land on the company's name and they also have sale deed for the same. I have also checked Telangana Registration Website and in the Encumbrance Certificate, their name is reflected.
2. 4 Acres of land is registered on the name of Mr. A (Name changed for privacy purpose) who is an investor to there project.
3. Another 2 Acres of land is still in Farmer's name. They also have shown me the Agreement of Sale between the company and the farmer and they are pretty sure, they will get register the land on their name by next week.
4. They will apply to HMDA within one week.
5. They have already taken a token amount of 50,000/- to book a plot on my name and have told me to pay another 5,00,000/- to them when HMDA File Number (not LP Number) comes. At that time, we'll go for Agreement of Sale.
6. Once Development Certificate comes from HMDA, they will have a Development Agreement on the company's name from Mr. A for the 4 Acres land in the venture.
7. After LP Number comes, they will register the land on my name and I will be able to take a bank loan for the remaining amount.
8. This whole process may take almost 2-3 months of time.
9. They already have completed another venture in Rudraram following the same process and I have seen all the registered sale deeds, Development Agreements, HMDA Development Certificates, and other necessary documents.

They also told me that, the plot chosen by me may not be available if I wait for HMDA LP Number and also, they will increase the price of the land from next week. So, I booked the plot by giving them a cheque of 50,000/-. Also, they mentioned that, if I do not show interest, they will return me the money back what I paid.

Now, my question is, just on the basis of HMDA File Number and one completed project by the developer and an Agreement of Sale, can I trust this company and pay them 5,00,000/-?

If so, what will be my stand if they do not complete any development?
What if HMDA rejects their layout plan?

I hope, I was clear on my queries.


Edit: This is a response from Exclventures -

Hi 

Basically no land layout project is done after buying land outright by developer. Instead they enter into agreement with many landowners and pay them some advance and take time to pay rest. 

They then with cooperation of landowners apply to HMDA with their name as well as other landowner names

Buyers are asked to pay 40% or so  when HMDA sends letter asking the developer to pay FEES to HMDA

This means project is basically approved subject to fees

At this time developer will collect money from all buyers and pay fees  ..after this in another month or 2 they will get approval with LP number

This is normal process

Usually at prelaunch buyers go thro agencies like ours to ensure they are protected in the event of anything  negative happens

So its up to an individual buyer's confidence to proceed  directly, at prelaunch phase.   

Regards
Pramod K
www.exclventures.com