Don’t purchase the BDA plot as lease period is only for 5 years
2) the BDA issues lease-cum-sale deeds to allottees, which forbids them from selling the site for 10 years from the date of allotment.
I came across a BDA plot for sale in Bangalore which is on lease for next 5 years . The landlord mentioned that there are no risks involved except there will be a penalty which I will have to pay to BDA once the lease period is over to get the sale deed in my name. Please let me know what are the consequences if I take a risk of buying this property.
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Don’t purchase the BDA plot as lease period is only for 5 years
2) the BDA issues lease-cum-sale deeds to allottees, which forbids them from selling the site for 10 years from the date of allotment.
If it is not a freehold property then you cannot get it registered on your name without NOC from BDA.
Therefore you can ask the seller to obtain the same.
When NOC is given then you can obtain legal opinion before buying the property.
1. When so many clear titled BDA properties are available why do you want to get involved in dispute.
2. Since the lease period is not over, the landlord is not the absolute owner.
3. In case in 5 years time the BDA rules change and you are deprived of this plot inspite of your willingness to pay penalty amount for getting the property in your name after the lease period is over and in such a situation, your whole plan becomes upside down.
Dear client,
It is important to understand the nature of the lease and the terms and conditions of the lease agreement before considering buying a property on lease. Here are some possible consequences you may face if you decide to buy this BDA plot:
The lease agreement may contain restrictive covenants that limit your ability to use or develop the property as you see fit.
The lease may be subject to periodic rent increases or other fees that could impact the financial viability of the property.
The landlord may not have clear title to the property, which could create legal issues down the line.
Once the lease period is over, you may be required to pay a penalty to the BDA in order to obtain the sale deed in your name. This penalty could be substantial, so it is important to understand the amount you would be required to pay and factor that into your decision-making process.
If the lease is not renewed, you may be required to vacate the property at the end of the lease period, which could result in the loss of your investment.
Before proceeding with the purchase, it is important to conduct a thorough due diligence and seek the advice of a legal professional to ensure that you fully understand the risks and potential consequences of buying a property on lease.