6 Steps to follow when purchasing a Layout in Bangalore

What steps can I take to protect myself while purchasing a property in a layout in Bangalore?

Step 1. Hire a good lawyer who can help you through the process.

Step 2. With the help of the lawyer, verify that the land on which the layout is based is actually owned by the developer/builder. This can be verified through the Title Deed for the land.

Step 3. If the developer has obtained funding for the project from a Bank the verification of the Title Deed will have to be done at the Bank since the documents are being held there. Additionally, in such a situation the Bank has a “claim” on the property until the loan is cleared by the developer/builder. Therefore, ensure that the Bank releases its Encumbrance on the property before you register the Sale Deed in your name.

Step 4. Ensure that the land on which the layout is based has gone through DC Conversion. Verify the DC Conversion documents since some unscrupulous developers/builders obtain and produce fake DC Conversion documents.

Step 5. Ensure that the site you are purchasing in the layout has been allotted a Site Number by the appropriate Planning Authority. This will be in the documents issued by the BDA, BMRDA, BIAAPA or other appropriate Planning Authority.

Step 6. Finally, you will always have lesser risk if you purchase layouts which are completely developed. This is because there are numerous things that can go wrong with purchasing an undeveloped layout. For example, the developer/builder might take your money and not finish it in the promised time frame or they might not build the layout to the quality that you expect, etc.

While the steps above help reduce the risk involved in purchasing sites in a layout, you should avail the services of a competent and capable lawyer in order to prevent any surprises.

What are the risks of purchasing property in a layout that has not been approved by the concerned authority?

The correct steps for getting a Layout approved by one of the Planning Authorities is something that the developers/builders do not follow in the majority of the cases. This has some serious consequences for people who have purchased sites in such layouts. There have been instances where the Planning Authority (ex. BDA) responsible for the site has demolished portions of the layout even after it has been sold to buyers. The people who bought homes from the unscrupulous developers have had the homes they live in being demolished.

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