Tips for investing in Gaothan properties

In areas of Navi Mumbai and Thane, there are several properties commonly known as ‘Gaothan properties’. Because of their low value, such properties attract a number of buyers with limited budgets. However, most of them remain concerned about the legality of such properties.

Mithila from Airoli asks on Open House, “What are the risks of buying Gaothan property? What are the necessary steps?” Pavan Shringi from Navi Mumbai also wants to know, “Why banks do not give loan for such properties?”

Explaining Gaothan properties, Raj Kumar Makkad, deputy advocate general, Chandigarh says, “If the properties come under state schemes like the 12.5% Gaothan Scheme (GES) of CIDCO, where they are transferred on payment of transfer charges to third parties, then a transferee acquires clear, legal and marketable title from the authority to sell or transfer the property to prospective purchasers.”

Makkad continues, “Generally, the transferees are builders or co-operative societies. On the other hand, the purchaser has a legal and valid title on the approval of his membership by the authority to the society on payment of transfer charges. In case of transfer of properties to the transferees, other than the co-operative societies and builders, any further transfer or sale would need CIDCO’s approval on payment of transfer charges.”

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.