This is a very important and complicated subject.
Some of the key steps in the process include
- Technical Due Diligence / MEP Audit (Design and Drawing Verification, Asset and Equipment Operational Review
- Review of All Statutory Compliances (Review of Land and Building construction approvals, CEIG & Environment clearances & related compliances, NOC from Fire Department & Related compliances)
- Soft Service Due Diligence (Housekeeping, Pest control, landscaping, Waste Disposal etc)
- Safety & Security Review ( Physical manpower in security, CC cameras, Keys custody and Management)
- Asset Validation (Verification of all assets, machinery, furniture, Asset tagging and coding, Reconciliation of inventory, verification and maintenance of Fixed Asset Register)
- Financial Corpus & CAM (Operating cash flow projections, CAM Advisory, Capital cost review of project developments, Review of existing contracts, Agreements with existing suppliers.
- Documents Handover (Documentation of all contracts, sale deeds, approvals, NOC etc)
The general consensus is that there are still no suggested Standardized legal process for this transfer and each association takes it up in its own way. Having interactive get togethers of MC (management committee), RWA (resident welfare associations), Bangalore Apartment Federation, Property Management service providers and technical advisory providers helps in knowledge sharing and development of a Standard process.
We at ORO have been working with several owners who have bought their flats recently and are in process of learning all these aspects. Though our flats are investment/rental properties, owners are keen to know and contribute to a proper takeover from Builder. We also assist clients in choosing properties where Builders have a reputation to deliver high quality projects and cooperate fully with Resident Welfare Associations.