Buy Back Scheme is an Assurance offer where the Developer buy back the property after a stiulated time at an appreciated price. The properties in Buy Back Schemes usually have a lock in period of 3 to 5 years. At the end of the lock-in period, the property owner has an option to either retain the property or sell it to the builder at the predetermined price.
By doing this, the developer is trying to show confidence that the price will rise by a certain level in the future. If it does not, the buyer can sell the asset back to the developer. This gives the buyer assurance that he is investing in a project that will be profitable.
Benefits of Buy Back Scheme:
- Property Exit Plan is Secured.
- Assured Price Escalation of property by the Builder when selling in stipulated time frame.
- Minimum Risk involved for Buyers as Developer is providing Win Win Offer.