The launch is a frequently heard or used term in the real estate industry. This term has great importance among builders and investors. This most used word is divided into 2 components. They are
- Pre-Launch
- Soft-Launch
Pre-Launch:
This is the phase that begins soon after the builder proposes the project to us. At this stage, the approval process of the property wouldn’t be sent to approval. As the basic document gathering happens at this stage. Once the required papers are obtained the project moves to the further stages. On that note, these are the most initial stages of the project. An ideal period for investors to utilize as there is a good concession provided in this stage. During this phase, the investor is exposed only to the proposed layout and plan. He cannot actually see the property as it’s not yet started.
The pre-launch phase is an unofficial launch of the property and it’s done through emails and word of mouth. Generally, the property prices will be low at this stage as there are attractive offers provided by the developer. The developer offers wide discounts to spike the initial sales numbers. Which could be used for marketing and other development purposes.
Soft Launch:
This is the phase where the approval process is underway. The required approvals are under process. Thus these Soft launch projects are relatively less risky than the Pre-launch. Because these are in the clearing stage. That is why these properties in this stage are offered with a minimum of 10- maximum of 20% off at the property price.
These stage properties are considered to be safe to invest in as all the necessary documentation is under process. However, without RERA approval even a soft launch is illegal and could lead to future disputes.
Legal Aspects:
Some of the soft and pre-launch legal aspects are discussed below
- The Pre-launch properties are considered to be no legal validity and carry a lot of risks
- The risk is comparatively less in soft launch properties as the respective approvals are most of the time obtained.
- The risk is relatively minimal in soft launches and is legally prominent by obtaining most of the required permissions
From these projects, we cannot expect regulated bills because only during the approval process do the regulatory bodies set defined pricing for these properties. It is best advised to invest in properties that have obtained all the required approvals.
Analyzing and understanding the approvals is a vital step that has to be followed by potential home buyers. We must ensure that all the required documents and permissions are in place before buying a property. To the least, a sale agreement should be obtained to avoid any dispute if occurs.
While considering a launch project choosing the right or reputed developer should be the foremost task. One more choosing factor is the prominent location that has good potential and connectivity facilities. Investments are made of huge money so we need to take a lot of care and responsibility in choosing the property.
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