Hi, Is there a concept wherein multiple people purchase land on their names and subsequently construct apartment for each of them? There will be a land sale deed in the name of multiple buyers and partition deed of each apartment. If yes, then What are the pros and cons?

Yes, this concept exists in India and is often referred to as a

. This involves a group of individuals collectively purchasing a plot of land, where the land ownership is shared among them through a

. Later, each owner constructs a separate apartment or unit on the land, formalizing ownership of these units through a

or

. Here are the

of this arrangement:

Pros:

1. Cost Savings:

   • Joint purchase reduces the financial burden, as the cost of land is shared among multiple buyers.

   • Construction costs can also be lowered through bulk procurement of materials and shared services.

2. Customization:

   • Each individual can design and construct their apartment to suit their preferences, offering more flexibility than buying from a builder.

3. No Builder Dependency:

   • The buyers have direct control over the quality, design, and timelines, avoiding delays and hidden costs often associated with developers.

4. Shared Responsibilities:

   • Responsibilities for land registration, legal formalities, and construction management can be distributed among the group, reducing individual stress.

5. Community Living:

   • Typically, such arrangements involve family members, friends, or like-minded individuals, fostering a sense of community and trust.

Cons:

1. Legal Complexities:

   • Drafting and managing a

     partition deed

     can be complicated, especially if there are future disputes over shared spaces or boundaries.

   • Ensuring compliance with local zoning laws and apartment construction regulations can be challenging.

2. Disputes and Conflicts:

   • Differing opinions on design, budget, or construction timelines may lead to conflicts among co-owners.

   • Issues may arise over common areas like parking, terraces, or maintenance responsibilities.

3. Financing Challenges:

   • Banks may be hesitant to offer individual home loans unless the partition deed is registered and clear property demarcation is established.

   • Obtaining a joint loan for the land can complicate repayment responsibilities if one party defaults.

4. Resale and Future Transfers:

   • Selling individual units can be more complex, as potential buyers may be wary of properties without clear builder-apartment structures.

   • The resale value may be affected if clear titles and partition deeds are not properly maintained.

5. Regulatory Approvals:

   • Securing approvals for apartment construction, particularly for converting the property into a recognized housing society, can be time-consuming and bureaucratic.