• What to check before investing in multiplex mall

I am planning to invest in some space in food court of a multiplex mall which also have movie theaters. now that developer is not part of any credai etc., builder organizations. before investing how do I gain confidence in below..
 - I am not aware of builder. they are stating they are part of well known builders and now became separate and pursuing hence they don\'t have history.a
 - To hold him accountable for what he says in future what kind of documentation is considered as legal. is he bound to provide every thing mentioned in brochure or some thing more I should ask for.
 - Half belongs to land owner(multiple owners) and half belongs to developer. what kind of documentation should I request and verify to make sure registration goes smooth at end?
 - How to know he has all relevant permissions to construct such property. which office should I go and check?
 - how to make sure cancellation terms are met on time if not I want to proceed legally.

In general what all documentation I should ask the developer or certain offices before proceeding. its being claimed its being constructed in a HUDA approved layout
Asked 2 years ago in Property Law from Hyderabad, Telangana
Religion: Hindu
1) check whether title to land is clear and marketable 

2) check whether building plans are sanctioned by HUDA 

3) whether occupation certifcate is issued 

4) do not sign blindly on agreement forwarded by developer

5) get it vetted by lawyer 

6) check whether there is any lock in period in agreement 

7) maintenance amount payable by you 

8) termination clause and refund of security deposit clauses etc 
Ajay Sethi
Advocate, Mumbai
45617 Answers
2680 Consultations

5.0 on 5.0

1. The check list is long and varies with the nature of land.
2. Few documents are fundamentally necessary before buying a property.
3. Those are- non encumbered certificate, revenue records to show noc, sanctioned building plan etc.
4. Do get a local lawyer checked the document physically.
Devajyoti Barman
Advocate, Kolkata
12856 Answers
166 Consultations

5.0 on 5.0

1. Ask the builders about their previous constructions. Ask them with whom they were associated before getting separated. Check from their associated companies. Find out who are the directors/share holders/partners of the builders and their capital investment patterns. Net search about them,

2. Collect and preserve the brochure and paper advertisements of the builders. Collect a due diligence report about the project from a lawyer. Conduct search of the land from the registration office and also check whether there is any case pending in any Court or not. Verify the original mother deeds of the plot also from the builder. Verify the development agreement the builders have entered in to with the land owners,

3. Collect copy of the draft agreement which you shall have to enter in to with the builders and get it verified. Ensure that there is a specific time or hand over of the property and also penalty for delay in such handing over to the buyer. Get the bsaid draft agreement verified by your local lawyer,

4. Collect the copy of the sanctioned plan from the builders verify whether they complied with the plan and have obtained completion certificate or not, 

5. Cancellation terms should be clearly mentioned in the agreement. If the builders donot  act as per the agreed terms, you shall have to approach the Court of law for getting justice which you can not avoid.

7. The documents you are required to verify have been specified above.
Krishna Kishore Ganguly
Advocate, Kolkata
18511 Answers
448 Consultations

5.0 on 5.0

You have to verify the building approval plan, title document, licence/permission from Municipal authorities, taxes, 7/12, GPAs if any, MOUs if any, JDAs if  any, encumbrances, and many more aspects that a local consultant would be able to guide you. 
Always obtain a  legal opinion from a lawyer and then proceed. 
T Kalaiselvan
Advocate, Vellore
35807 Answers
390 Consultations

5.0 on 5.0

1) draft of agreement will be provided to you 

2) contact local lawyer and based on his inputs suggest changes to builder 

3) suppose you have taken place in food court . in the event of loss you want to terminate agreement . builder may refuse if agreement provides you cannot terminate for say 1 year . it is the lock in period in agreement 

4) you can take inspection of originals from builder and ask for certified copy from builder

5) lawyer can give his opinion in a day or so  
Ajay Sethi
Advocate, Mumbai
45617 Answers
2680 Consultations

5.0 on 5.0

1. The first set of documents which you should inspect is the title deed of the lands. If the title is not clear they cannot construct anything thereon. You may lose all your investment if the chain of ownership is not clear.

2. It should also be ascertained whether the land is the subject matter of a dispute in a court of law, more precisely if a stay order has been issued by the court.

3. Whether the requisite permissions have been obtained or not should also be verified.

4. Engage a lawyer to carry out the process of due diligence in a threadbare manner.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

what specifically should I look in for builder-developer agreement. In This case construction still in progress and they are stating whole top floor will be mortagaged and which side builder will own and which side developer owns is not decided yet. so not sure how I can confirm my unit in sale agreement.
Without a confirmation about their own property or identifying the individual share in the property, it will be foolishness to purchase the property which is not available as on the date of purchase.

Also what is locking period? maintenance payable for ever sq ft even though 55% is common area not even sure if its normal norms.
You have to refer to the terms and conditions of sale agreement as well as the bye laws meant for this purpose. 

How long in general it takes to request all above documents from authorities if builder doesn't furnish originals. how long does a lawyer take for legal opinion. If it takes too long not sure about price locking
The time taken for the above tasks can be predicted only by an astrologer and not by a lawyer. 
You can clarify the issues with your own lawyer who you pay the remuneration. 
T Kalaiselvan
Advocate, Vellore
35807 Answers
390 Consultations

5.0 on 5.0

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