Pre-Sales And Soft Launches

wealthymattersPre-sales and soft launches are now a common practice in the real estate industry in The MMR. Builders go for pre-sales to get immediate funds. In case of pre-sales, buyers or investors make a down payment, which could be just 20% to almost half the cost of the flat, in return for a discounted price offered by the developer.In some cases,by getting people to book flats by paying just 10% to 20% before the first brick is laid, developers have manage to sell 200 to 300 flats even before the project is publicly announced.

Many builders go for pre-sales the moment they buy the land and mortgage it to the bank. The BMC now charges builders who want to avail of extra construction rights, called fungible FSI, and transfer of development rights, a premium. Builders require funds to pay  this premium.Hence they start selling units even before a project begins. The  approvals can take over a year after pre-sales.

However many unscrupulous builders have gone for pre-sales when even land titles are not clear.The problem is rampant in Thane district. Read more of this post

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