• Question regarding pre-launch property

Hi I have booked a flat on pre launch offer. Builder didn't get the approval yet. Hope this was prohibited as per the Real estate bill passed yesterday. As mentioned by the builder. This property will get approved in another 4 months. Will there any issue because of this Bill. Whether booking get cancelled.
Asked 2 years ago in Property Law from Bangalore, Karnataka
Religion: Hindu
1you should never book flat on pre  launch basis . such bookings are illegal 

2) only after building plans have been sanctioned and commencement certificate issued should you do the booking 

3)real estate bill is not yet passed by Parliament and has not yet received sanction of president 

4) since you have already done booking builder wont refund you booking amount if you cancel the booking now . 

5) terms and conditions of booking have to be perused to advice 
Ajay Sethi
Advocate, Mumbai
26090 Answers
1419 Consultations
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1. Regardless of what the real estate bill says it is imprudent to book a property when the builder has not obtained the necessary approvals. You should have carried out due diligence before booking the flat.

2. If the builder succeeds in getting the necessary sanctions from the authorities then the allotment and subsequent sale would not be illegal. The booking will not get cancelled. 
Ashish Davessar
Advocate, Jaipur
19133 Answers
484 Consultations
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The Real Estate Bill has been passed but it is yet to be implemented as the assent of the President and Gazette Notification is yet to be made. If the Builder has not got any approvals yet, then he would have to register himself before the concerned authority. The booking may not get cancelled just because the Bill has been passed. It is advisable not to book any flat at a pre launch offer until and unless the building structure etc is got approved. 
Shaveta Chaudhary (Sanghi)
Advocate, Chandigarh
821 Answers
60 Consultations
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Hi,
1. a purchaser need to keep due diligence in buying property as pre-launch offers are unrealistic till they actually completed.  Since you have already booked it follow it up  and make sure that , the builder keeps hi s promise in terms of completion possession and the amenities and the necessary legal documents pertaining the flat is in place..

2. The Bill has not approved by the president of India an it is waiting for the consideration and approval of the president, however why a delay in getting approval for the builder, Have you not checked the documents with the builder?If not engage an advocate from the area and take help to verify the documents if any.
You can cancel the booking and demand the return of the amount, by sending a notice to the builder for the reason that he has not got sufficient permission.. 
Thresiamma G. Mathew
Advocate, Mumbai
1353 Answers
93 Consultations
5.0 on 5.0
A. Any project which will be formed by the builder must take approval from the local authority. It is mandatory rule.

B. Real Estate bill still under process and it must be permissible from 1/3 majority in the House. Hence, we cannot come to a conclusion, unless bill finally executed and converted as law or act.

C. Unless approved the building or project, the builder cannot commence any booking towards the flat. In case, if the builder will commit to start booking, it would amount  to unfair trade practice within the meaning of the Consumer Protection Act, 1986. 

D. Better, issue a legal notice to the builder to refund the amount or wait 4 months till approval from the local authority. Perhaps, the builder fails to reply to your notice, you can approach the Consumer Forum under the deficiency in the Service and Unfair trade practice.
B.T. Ravi
Advocate, Bangalore
743 Answers
34 Consultations
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1. It is still a Bill,

2. No Act has been enacted as yet,

3. The act will not have restospective effect,

4. It will have prospective effect only,

5. You are not likely to face any problem on account of the said bill. 
Krishna Kishore Ganguly
Advocate, Kolkata
13203 Answers
280 Consultations
5.0 on 5.0

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