Liquidity a problem for housing units booked under land pooling
Homebuyers who have bought properties in areas in Delhi that come under land pooling are warned that the policy (LPP) is not yet operationalised. What this means is that till lthis happens, liquidity in property investments will be a problem since the plot of land is not identified.
“Given that the same plot of land need not necessarily be reallotted, this will also expose the buyer to a risk of his property being built in a less desirable location,” says Yogesh Singh, partner with a legal firm Trilegal.
Architectural plans of the project have to be approved before developers/societies get a license to build. “Under the LPP, all apartment bookings made are now null and void. They would have to adopt the new model sale agreement prescribed under RERA Rules which definitely
EXPERTS ALSO QUESTION THE PRICE AT WHICH THE RESIDENTIAL UNITS HAVE BEEN SOLD TO HOMEBUYERS
would affect revision of apartment prices as well. Customers should immediately seek refund of their investments and wait for these builders/societies to get registered under the RERA first,” says Amit Jain, founder and CEO, FARxchange.com
Experts also question the price at which the residential units have been sold to buyers. “Most buyers have been sold flats for around `3,000 per sq ft to `5,000 per sq ft. How have flats been sold at this price in the absence of clarity on government levies, external development and internal development charges and the final cost of construction,” they ask.
A housing society coordinator says his society was registered under a trust and that six acres of the land had been fully or partially paid for.
He claims that the society will follow all legal procedures as per RERA.
Another society coordinator is of the view that once the land collected by societies is returned to DDA, it will get a land transfer agreement, a single window document that includes license for the land. This will be followed by getting floor plans and building plans approved,” he adds.