Is it safe to purchase BDA alternattive site

[nammaHuduga]

Hi,

Greetings to everyone!

I narrowed down my search for site/plot in & around HBR layout to a BDA plot. The seller of this BDA plot is a builder, when I went to interact with him, I got to know that this is an alternate site from BDA which will be directly allotted to me from BDA.

-- When I questioned about the ownership of the BDA site
During the discussion with the builder, I got to know that he had laid out a new layout in some other place, which was acquired by BDA and as a compensation he's been allotted these BDA sites (after court case), which he's planning to sell now.

I'm very much interested in this site & the price is also less (6000 per sqft). I'm in dilemma whether to go for this site for below reasons:
1. Whether it is safe to purchase an BDA alternate site.
2. Since price is less, I sense something is fishy.

The builder is well known & is operating in Bangalore from 18 years.

Please can anyone give me some feedback/suggestions.

Thanks in advance.

[Hesh_Mysore]

Hi,

Why would anyone sell his land for less. I can understand, if someone does not want a premium price, but no one will sell under the ongoing price. If he wants to sell it for so less, any broker in that area would have bought it by now to resell it later at a good price. So be very careful about this. Also alternate sites are given by BDA if the site allotted has issues and also it should ideally be allotted in the same layout as before or in any layouts that were formed at the same time or later.

In this case for some land was acquired now and him getting allotted in a fully developed BDA layout seems a little fishy. The reason I say is, people pay bribe to BDA officials and get alternative sites in older fully developed layouts for any site which was formed much later and not yet developed so that they can sell it and make a huge profit compared to the site they had in a relatively new layout. If someone files a case, all sites that were allotted in this way get into trouble and not just the specific one. So do your due diligence

All the best

[ravikumar124]

nammaHuduga ,

i would suggest to take Hesh_mysore advise on your due diligence .. if you do little home work you can find out plot history... get the EC for last 25 years and also ask him to share BDA document where you confirm alternative site is due to land Acquired from him .. and also Court copy where u can check more on communication ..

i agree with Hesh regarding low price .. but in case if he want to sell of this plot for other better deal .. you never know ..

collect the property documents like mother Deed .. transfer Deed etc .. and get the copy of PC/Allotment letter .. make sure you get all documents ..

try to get legal option from Property advocate along with those documents ..

if you get a clearance and document is perfect then go for it ..


i would like to mention here i purchased BDA alternative site which was given to direct allote by BDA itself .and to make sure documents are fine i took a home loan

Regards
Kumar

[nammaHuduga]

Hi Hesh_Mysore, Ravikumar,

Thanks for your advice.

I have checked the court order, it looks well in place. Also, I verified that this builder has sold some alternate sites in other BDA layouts as well. I verified allotment letter, acquisition letter etc of those sites. It was mentioned as 'alternative site' in these letters.

Also, after about 2 weeks research, I got to know that one of cousin has purchased a plot (for investment purpose, not BDA site) from the same builder. He purchase a plot from a layout which was developed by this builder. From my cousin, I got to know that he's a genuine builder, operating for about 20 yrs in Bangalore & hardly has any negative mark.

As Ravikumar did, I would be going for composite loan from SBI, since they do strict & thorough verification.

Regards,
Nawaz

[Hesh_Mysore]

NammaHuduga,

I issue per say is not about buying an alternative site as I have gone through that, the issue is when you get an alternative site in a developed layout. This is the reason of due diligence.
Firstly, You said the builder wants to get the alternate site on to your name directly from BDA. This is absolutely wrong. It should be allotted in his name and he must sell it to you later. You have no standing of that site getting allotted to your name from BDA. Any objections, later, you will lose the site for sure.
Second, about the alternate site being given in a developed layout, this also is cause of concern. The documents will all be proper, but as per rule a person cannot be allotted a site in HBR layout if he had original site in BSK 6th Stage (example), the reason being the value of the sites are not same in both layouts. Big builders/agents will pay some bribe and get this alternate allocation done in developed layouts and try to sell it off ASAP and the new owner gets tangled in legal issues later.
Also getting a loan from SBI is by no means a guarantee on the validity of the alternate site allotment. It only means the site is valid and has approvals, does not validate if the site should or should not have been given or approved as an alternate site by BDA to the person.

By no means I am saying you should not buy the alternate site. Just take time an talk to couple of advocates who handles property related matters and then go further.

Regards.

[ravikumar124]

Nawaz ,

what ever Hesh_mysore is saying is 100 % correct and mine alternate site was like 6 th cross to 1 st cross same layout because BDA miss to have park initial stage and added later ...

please never ever support any deal to allocate to you directly from BDA if this is case .. and also if that guy get the plot from BDA then make sure it stays on his name for a while .. like if someone has concern 6-12 months time frame they will file a case and legeal action will intiated .

Alternate site in my view was 6th cross to 1 st cross with in same block not like HBR layout to BSK 6th stage .. this is like almost impossible in my view also ..

i understand you checked around with u r guys and confirmed he is good developer .. this does not mean he is selling legally right ( if he gets from BDA by doing something and sells to you soon ) then you might end up in long legal process if some one want to have legal case for illegal allotment .

and i will agree 100 % with Hesh_Mysore on SBI loan idea .. for sure no bank will make sure any illegal activity done by BDA and the big builder .. bank job is to check all the documents as per legal framework .. but this will not confirm alternate site in different Area is 100 % ok .. it might happen even after bank loan approved .. legal proceeding can take place ..

in my opinion if those conditions are true then just drop the idea of buy from him and pay market price .. later you will have peace of mind .. eventually property will gain its value ..

[nammaHuduga]

Hi Hesh_Mysore, Ravikumar,

Thanks a lot for your feedback & suggestions.

After lots of research, thinking & efforts I dropped the idea of purchasing this plot.

As you guys pointed out, I majorly dropped the idea thinking about the consequences I might face in future if something goes wrong. Since, it's hard earned money for a middle class family like us I don't wanna risk it.

Thanks again Guys

Regards,
Nawaz

[ravikumar124]

Nawaz ,

good to know , i just wanted to say that even if you gone with deal you will always have at least 1 % what might go wrong in future .. and if u buy plot you will build house and it will be again more risk .. recently i see similar case where they build 3 floor after few years owner ended up in top court for some litigation which end up demolishing the building at last .. so don't worry now and good luck for u r plot hunting ..

Kumar