The launch date is a frequent term used in the real estate industry by builders and investors. This launch date is the date when the day the project officially starts or initiates. There are two types of launches in the real estate market. They are
- Pre-Launch
- Soft-Launch
Pre-Launch:
This phase is the most initial stage of the project where none of the approvals are been initiated. However, this is the ideal phase for the investors as the builder side would offer a remarkable offer price in this stage. In this stage, the investor would not able to see the actual property. They would be given access only to the proposed layout and plan.
The selling in this stage usually happens through existing client emails and word of mouth. We could foresee a relative price range in this Pre-launch stage. The purpose of this low pricing from the developer’s end is to spike up the initial sales figure. Which they could use for marketing and promotions.
Soft Launch:
This is the next phase to the Pre-launch phase. In this, the approval process would be underway which ensures all the requisite clearance and approvals. These stage or phase projects are less risky compared to prelaunch projects. In this soft launch phase as the documentation is underway and is recognized legally. At this stage, the properties will usually have an offer from 10-15% discount from the market price.
This staged project is considered to be safer as the documentation of this project is under process. However, it’s best to invest once the RERA approval is also received as the property would be 100% safe to invest.
Without RERA approval even a soft launch property is considered illegal.
Legal Aspects:
There are some legal aspects in terms of the prelaunch and soft launch properties. They are
The Pre-launch projects come with no legal validity and are at a high-risk rate
Comparatively the soft launch projects have minor risks as the documentation is processed to some extent.
In this stage of the project, we cannot expect any regulatory bills because the developer could define their own norms and billing structure at this stage. Its most recommended to obtain a proper legal opinion to secure our investments.
Analyzing or getting to know the respective approvals for the property is a mandatory step for any potential buyer. We should at least be having a sale agreement on our side to be well prepared and secured from any dispute.
As we all know investments are a huge responsibility, they need to be dealt with with good care. For any project, the right and reputed developer is the prime step in buying. We should also be considering the right location and examining the potential of the location.
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