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Propseeker (Software Engineer)     06 April 2013

Buying a non-converted house-site

Hi Sir,

Maxworth Realty India Ltd. has launched its project Max Orchards Phase-3 in IVC Road, Devanahalli, Bangalore. They provide EMI facility for 3 years after paying a booking amount of 50,000 INR. The concern is that the land is not converted and is still as a farm land. The company claims that they will get the land BIAAPA approved and registered within 1.5 years i.e, once 50% of EMI is paid. Even if 50% of the total amount is paid instantly, they do not get the site registered because the BIAAPA approval takes so long time.

Maxworth Realty is allegedly a reputed company. Since I am amateur in real-estate, request you to assist me by suggesting whether it is a good idea to buy a plot in this project. Below are the pros and cons in my opinion.

Pros:

  1. Price per sq.ft is far less than BIAAPA approved plots in that area
  2. 36 affordable EMI facility

Cons:

  1. Customers will have to risk their EMIs till registration. Though the company provides receipts for each EMIs, it does not provide any legal agreement in letter-head or bond paper, claiming that it is their legal team's decision.
  2. Layout plan is ready, but sites are not divided. Customers will have to select the site based only on layout plan.

Regards,

Propseeker



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