Approvals for Gated Layouts

[bdasites]

Hi,

I came across a gated layout project recently. The layout doesn't have BDA approval yet but the builder is already accepting bookings. He wants to get sale agreements done right now as part of the booking, and wants me to pay 10 lakh (The cost of land+construction in total is around 55 lakh). He is saying the approval could take another 6 months, and he will start construction after that. I have some questions on this:
1. Can the builder start booking even though BDA approval is not there?
2. Can the land registration be done in my name before getting BDA approval?
3. Can the builder start construction before getting BDA approval
4. What will happen (What should I do) if BDA doesn't give approval after 6 months?
5. Is 10 lakh a big amount for sale agreement. The builder says 5 lakh for land and 5 lakh for registration.
6. Will banks approve my loan with the sale agreements before BDA approves the project?

Thanks in advance,
Mutsilu

[godisgood]

Hi Mutsilu

Here is my opinion. I am not very familiar with all the legal stuff and this is only my opinion, so maybe some legal experts can add or correct me :

1. Many builders do start taking booking even before all approvals. At the time they call it pre launch offer and quote lesser price etc.
2. I think only sale deed registration can be done but other things that actually matter like khata plan approvals etc cannot be done
3. Legally he cannot construct without approvals i think
4. If no approval is given you will have to just wait or maybe it depends on the initial agreement you have with him as to what is the penalty if things dont happen as promised.
5. for me 10 lac is big for you i dont know
6. i think banks wont approve loans unless builder has some agreement with some banks for launch.
again this is just from wat i knw and i am no legal expert or lawyer.

[bdasites]

Thanks a lot 'godisgood' for your reply.
On #5, 10 lakh seems a big amount for me as well How much would you suggest? To me, it seems like the builder is trying to pool in booking money to do ground work for approvals, so he wants as much as we can give.

Thanks,
Mutsilu

[ashrafcf]

I've a offer from a developer , for a getted community in IT PL, with DC conversion, and BBMP A katha, this is 4.5 acre layout with electricity, water, Black Top road, now the question is BBMP or BDA Will not give approval for 4.5 acres, with out the approval can i go ahead, what would be the future problems, should i buy this please let me know, ashrafcf@yahoo.com,

[godisgood]

hi Mutsilu
so it will depend on the how reputed the builder is or how well you know him to trust him. so ur decision will have to be based on that - whether he is trying to get as much as possible to work on approvals or as much as possible and then move on without showing any more progress.

Ashraf - will you be able to get individual khata in ur name, get plan approval etc? have u checked about this?

[rampi]

Hi all,

Please do not even think of this kind of arrangement irrespective of reputation of the builder. There are umpteen no of cases on so called reputed builders. ( Funny : yes every builder has reputation which is Bad . I am yet to come accross who is good. Their inward appearence and outside appearence are totally different. )

When ever any builder brings this kind of proposal stright away tell them to get lost. if all of us say that then they will realise that customers have changed. Other wise they have strong belief that customers are fools and continue to fool them

Thanks
Ram

[ecopackindia]

Dear Sir,
There is no law or concept of Gated Community. Nobody can block the road and fix the gates or compound in a layout with all clear cut approvals. The road, Civic amenity sites and all common areas belong to the Government and none of these so called associations have any right over the common areas. Take Care. Do not fall prey to wrong declarations. The localites in and around bangalore hate these gated communities and are always trying to open the gates. One such organisation blocked the road on bannergatta road stating that the common areas belong to them but the BBMP demolished it. Luckily BBMP did not book criminal cases against them for blocking the road. As the city engulfs these areas, these gated communities can have gates, once it is close to the developed areas, naturally the gates disappear. Check before you buy.
*************************

Edited by admin

[akula]

Hi ecopackindia ,
what about the roads in gated community apartment projects like that of sobha, puravankara, etc.. ? Does the law say that these roads belong to public too ? if not what is difference between these and the gated layouts that sell only sites where you are saying that roads are for public use ?

[santosh_vp]

Yes, Even in those cases also. One example to site is Brigade Millanium appartement road is open for public.

[harshablr]

Hi, If the layout does not have BDA approval, what is the guarantee that they will get it?????? / Check if the land is DC converted, if it comes under BDA limit, any notification from BDA, any road or other development planned under CDP, does it comes in yellow zone or green zone etc. I had bought a villa last year near Varthur which was approved by BDA in 2009 it self but unfortunately i selected the unreleased plot and these developer gave me and my family the toughest time of our life, they promised to get it released within 2 weeks and it took 7 months for them to finally get it released ,then they tortured us to pay money even without the release else threatened to cancel the plot, now they are giving me ever tougher time by delying the construction its more than 7 months a small villa is not been done,Please don’t get fooled the way i got, please ensure to get the documents checked by your lawyer before you pay even a penny to any developer.

Thanks
Hari


I came across a gated layout project recently. The layout doesn't have BDA approval yet but the builder is already accepting bookings. He wants to get sale agreements done right now as part of the booking, and wants me to pay 10 lakh (The cost of land+construction in total is around 55 lakh). He is saying the approval could take another 6 months, and he will start construction after that. I have some questions on this:
1. Can the builder start booking even though BDA approval is not there?
2. Can the land registration be done in my name before getting BDA approval?
3. Can the builder start construction before getting BDA approval
4. What will happen (What should I do) if BDA doesn't give approval after 6 months?
5. Is 10 lakh a big amount for sale agreement. The builder says 5 lakh for land and 5 lakh for registration.
6. Will banks approve my loan with the sale agreements before BDA approves the project?

Thanks in advance,
Mutsilu[/quote]