By Accommodation Times News Services
By Adv. Vinod C. Sampat
Before embarking at any project, the prospective building, who wishes to have a good name and reputationin the market should ensure that he has a time of reliable Architect, Engineers, Solicitors and Contractors andabove all good Marketing Consultants. Marketing is the essence of business today. As there are several builders,who have constructed fabulous buildings with latest amenities and fittings spent crores of rupees on the plots,on the construction, etc., but are not having a good marketing team. Therefore, today it is imperative to havegood marketing people to market your product as marketing assumed significant importance to achieve successin the industry today. Now let us come to the specific of the industry:-
1. Identifying a good plot:
It is necessary for the prospective builder to study the market and understand the fundamentals of demandand supply in the market today. It may not be a good decision to invert in land in localities. where thousands ofFlats are lying unsold all over. You will only add to the glut. The best manner to embark on a viable project is toidentify any plot in locality where the demand is more and the supply is less and, therefore, any developmentdone by the Developer will fetch immediate customer. This is the fundamental decision to be taken – Identifyinga plot in a locality where the demand is more and the supply is less.
2. How to locate plot:
The prospective builder should advertise in the newspapers and ask for a plot in the locality specifically
identified by him. For example, if he wants a plot in JVPD Scheme or Santacruz or Bandra, he should identifywhat size of plot he needs and asks the Estate Agents and Property Owners to respond to his advertisement.Basically the builder who have substantial enough money ready in his pocket, will be able to buy a plot ofwhatever size depending upon his budget. If this amount is not ready with him and he wants to collect themoney from elsewhere, then he should not put the cart before the horse. He must keep the money ready asready payment gives him good property at low price. This is the essence of purchasing a plot.
3. The modalities for purchase of a Plot:
After inspecting several properties shown by the Estate Agents and Property Owners, the builder will ultimatelypurchase the plot depending upon its location as per Vastu and also proximity to School, Railway Station, BusStation and other essential services. If the plot is located near such essential services and has not cut off fromthe mainstream, then automatically people will come to buy the Flats in the building. So these points must betaken care of before finalizing the plot. When you are now ready to buy plot you will have to pay a 10% EarnestMoney and enter into an Agreement for Sale to buy the property. These Agreements will be clear in stating thatthe title will have to be verified, the development will have to be issue public notice and the seller’s advocate willgive certificate of marketable title before even paying the Earnest Money.The legal formalities are best left to the Ld. Advocates, who knows the formalities to buy the property andthe builder should not indulge in being a jack of all trade and master of none and therefore he must have properprofessional who will handle the various works like legal work, architectural job, building construction job, etc.and all these people will be a reliable group of people. So far as the formalities of purchasing the plot, the buildermust get ULC permission of put in the paper and the title should be clean and marketable. Once all these pointsare verified, the conveyance of the land can be executed and proper stamp duty should be paid and documentsshould be duly registered in the name of the Company for which the builder is buying the property. This establishesthat he is the owner of the plot.Sometimes the owners are willing to enter into a joint venture Agreement with the builder. In such jointventure also the title should be inspected and the builder should assure for himself that there will be no legalcomplication in the property. But in a joint venture the owner will take 50% flat and the building will get only 50%.In this case the builder has to negotiate about the payments with the owner and come to a workable understandingwhere the builder can make some profit. After the plot has been purchased or confirmed for a joint development,the plan has to be prepared for the project.
4. Planning of the Project:
It is essential for the builder to appoint a reliable Architect, who can give good planning , good designing andultimately successful project. It is essential for the builder to appoint an Architect, who knows BMC rulesbesides being a good planner or a designer and BMC is known for creating problems while plans are beingapproved and they normally indulge in black-mailing the builder from time to time. Therefore, it is essential forthe builder to have a strong Architect, who can tackle the BMC. While planning the size of flat, it is very importantto understand the demand of the market whether the big flat will sell or the medium flat will sell or the small flatwill sell. This point has to be surveyed and then the plans have to be suitably designed. There is no point intrying to sell big flat of 5 bed-room and 6 bed-room when the demand is only for 2 bed-room flat only. Therefore,the demand and supply must determine the size of the Flat.
5. How to start the project:
After the Architect has submitted the plan and got the plan approved from the BMC, it is now time to appointa suitable Contractor, who will execute the project. If the building is a multistory building with lift, then it isessential to have a Piling Contractor, who proceeds civil contract in the project. The Piling Contractor must havesolid experience in the line with proven track record and only such people should be appointed. For a PilingContract, the reputation and understanding of the Contractor for good quality construction is more importantthan the rate and it is wrong to be pennywise and pound fooling in respect of Piling Contract, as the PilingContract is the back bone of the building. After the piling work is over the Civil Contractor should be appointedto execute the civil contract as per the list of amenities and fittings, which will be decided between the builderand the Architect depending upon the trends of amenities given in the building in the given locality. Once thecontract work has already passed on, a board should be installed at the site giving the name of the building andthe type of construction details of Flat i.e. number of 1 bed-room flats, 2 bed-room flats, 3 bed-room flats, etc.and invite people to take the flat.
6. How to sell Flats:
The builder must ask the Solicitor to prepare a proper Sale Agreement for sale of flat in his building and alsogive a proper title certificate to show the prospective purchaser that the title of the property is free from allencumbrances and also the plan should be annexed to the Agreement with the list of amenities in conformitywith the Maharashtra Ownership Flat Act.
7. Handover the Scheme to the Purchasers:
After the building is completed and after all the flats have completely been sold, the builder must handoverthe possession to the respective purchasers and transfer the property to the proposed co-operative Societyformed by the purchasers and give a grand party to the purchasers and develop goodwill with grace indignity. Itis essential for the builder to maintain good public relation with the flat purchaser and look after their requirementin their individual flat at a personal touch for their requirement. This is the essence of the good builder. Once abuilder establishes a good reputation more and more people will come to him as he has proven track record andpeople will call him a reliable builder.
The author has written more than 800 articles besides 55 books on Property related matters. Editor.