• Byuing flat from Builder with Panchayat Approval

Dear Experts, 

I am planning to buy a flat which is being developed by a builder in Bommasandra Area of Bangalore. He told that the land belongs to his Brother and the development is a joint venture between them. It will be a G+4 apartment building with 20 flats and already construction is in progress.  Bommasandra/Electronic City does not come under BBMP according to him, so the best he could get is BMRDA approval for the building. But since the area of the land is below 8000 sq ft. there will not be any BMRDA approval  So, he is building it under Panchayat Approval. However, he has got tied up with Banks like Andhra, India bulls etc. And I can avail home loan up to 80-85% based on my credibility. But I need to do registration immediately after the loan is sanctioned. 

I need your expert advise in taking decision if it would be wise to go ahead to purchase the flat. Will there be any problem in future? What are the risks involved? If I can go ahead what are the documents I must verify with a Bangalore based Lawyer? 

I was attracted because of the price and design of the flat(s). 

Thanks in Advance


Asked 2 years ago in Property Law from Bangalore, Karnataka
Religion: Hindu
1) it is better you purchase a flat which falls within BBMP 

2) the reason being that you can check whether building has been completed as per sanctioned plans as builder would have OC and you cna void legal complications in future 

3)if you still want to purchase the flat check whether builder has clear and marketable title to the flat 

4) check whether builder has sanctioned plans from panchayat and building completion certificate 

5) if project is pre approved by leading public and pvt sector banks they would have done due diligence before sanctioning loan 
Ajay Sethi
Advocate, Mumbai
45424 Answers
2668 Consultations

5.0 on 5.0

No proper advice can be given on the title of property without seeing the actual documents.
The papers and your remarks in the query may differ.
Hence I advise you to give the papers to a local lawyer for opinion.
Devajyoti Barman
Advocate, Kolkata
12804 Answers
165 Consultations

5.0 on 5.0

1. The registration follows the sanction of loan by the bank/financial institution. You should carry due diligence to ensure that the title of the property is free and marketable. A seller cannot pass to the purchaser a better title than his own title. The title of the seller must be clear and free from any encumbrance.  A search of the records at the sub-registrar’s office may be carried out for documents that may affect the property and may have been registered .The report will show the recorded owner of title of the property and changes in the title of the property. If the land is an agriculture land than Jamabandi and Mutation records (Khata) of that land should be inspected. 

2. Most importantly, conduct due diligence through a lawyer as there are multifarious risks. 
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

you can buy it. If in future it comes under BBMP then you will have a chance to legitimise it by paying conversion fee. If there is any illegality bank cannot provide loan. so better for you to consult a local lawyer.
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

Some survey numbers  of Bommasandra Area in Bangalore does not come under BBMP. So need to check with BMRDA with reference to plan approvals based on survey number of your property.
if there is panchayat approval and banks like andhra bank are granting loans, by and large it should be ok. Not sure with INdia bulls as it is a private home lending institution. 
Check with SBI or PNB or ICICI. These institutions can sanction loan and also provide deep insights in to approvals. 
Rajgopalan Sripathi
Advocate, Hyderabad
1307 Answers
158 Consultations

5.0 on 5.0

Hi, If the property is not come under jurisdiction of BBMP then only panchayath has authority to issue plan for apartment. but as per my knowledge Bommasandra will come under the BBMP limits.

2. It is better you can verify the property documents through advocates then only proceed further.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 on 5.0

Before proceeding ahead with booking a property or registering a property, one should know the various agencies involved in layout and building plan approval. Some of the main agencies involved in real estate include BBMP, BDA, BMRDA, BIAAPA, DTCP, LDA, etc.
DTCP (Department of Town and Country Planning) is the authority that sanctions layout plan in those areas where departments like BDA, BBMP, BMRDA, BIAAPA does not exist.
However you may you to go for projects which has got all the necessary approvals from local body or banks otherwise there may be chances of demolition or other thing if the project has not got the approvals required.
T Kalaiselvan
Advocate, Vellore
35601 Answers
385 Consultations

5.0 on 5.0

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