You have made all the arrangements to move into your dream home. But there seems to be a delay in getting the possession of your abode. To put in simple words, delay in real estate approval can be frustrating. After all, every buyer has a fixed timeline in mind for getting possession of his home. But you have to learn to deal with it.
Delay in Real Estate Approval: Probable Reasons
Market condition
To begin with, the market situation is one of the reasons for the delay. Not so promising market conditions make it tough for the builder to collect the capital. As a result, there is a delay in construction.
The long list of approvals
The slow down of work is also due to the different approvals that the real estate developer has to get. There are around 48 approvals that the developer has to get.
Impact of changing laws and lengthy procedures
Thirdly new laws are coming up. Also, the approval processes are lengthy. All this can also affect the approval and possession process.
Funding problems and cash crunch
Next, funding issues can make life difficult for the developer. This in turn is going to affect the property possession timeline. If the developer is facing a shortage of cash it is not possible for him to complete the project in time.
Delay in Real Estate Approval: The attitude of the developer
Next probable reason is negligence by the developer. It is important that the developer takes interest in completion of the project. He needs to ensure that all the documentation and other processes are completed in time.
Diversification of funds
Diversification of the money in various projects by the developer is also one of the reasons. The developer may give priority to some other project. As a result, another project may come to a standstill. This can lead to delay in possession.
Title issues
Clear title is very important. If the title of the land is disputed then there can be a delay in project completion.
Here is what the buyer needs to do before he invests in property
1. History of the developer
Before the buyer investsin the propertyhe should check the history of the developer. If the developer has a record of delaying projects then it is best to avoid investing in his project.
2. Legal advice always helps
Before the buyer makes the investment he must check some important things with a lawyer or property expert. Firstly, he must check if the builder has the right of the land where he is constructing the project. Secondly, he must check if the builder has got all the approvals. The buyer must check if the licenses are authentic and viable.
3. Vary of projects in pre-launch and soft launch stage
In the pre-launch stage, the builder announces the project; but the regulatory approval process is not started. In the soft launch, the approvals are under process. The chances of the project getting stuck are high in these phases. So the buyer needs to be cautious as here the possibility of delay in real estate approval is higher.
4. Ask all information
The buyer must take all the information from the builder. He must ask for important details like the project schedule. Secondly, he must also ask for the project drawings that are signed by the municipal authorities.
Delay in Real Estate Approval: Are You Still Stuck?
The Indian Real Estate sector is unpredictable. Despite taking all the precautions one can get stuck in a delayed project. In such cases, the buyer must stand up for his rights. He along with the other sufferers must question the builder. They need to pressurise the builder to complete the project at the earliest.
One may also explore the option of selling the property to someone else. But if the buyer has taken a loan then the entire process may get complicated. As a last resort one can explore the legal option.
Wrapping up
To put in simple words, before one invests in property it is important to scrutinise all the details. Most importantly, take legal advice. Only then make the investment.
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