FAQ

Q. What happens if the developer continuously misses the completion date?
The developer is allowed 6 months leeway after the intended completion date without interest, after which interest is payable to the customers as 12% per annum till the project is eventually delivered.
If you opt out of the rental guarantee I assume you can still use the services of the management company to find tenants, what fees are involved?
The rental guarantee is a feature of the Management Agreement. You may however contact your own agent to find a tenant and execute the “Leave & Licence Agreement”. An agent typically charges the equivalent of between 1 and 2 months rent for a 22-month tenancy.

Q. What are the monthly Apartment maintenance and common area service fees?
1 Bed: INR 1,500/mo
2 Bed: INR 2,500/mo
3 Bed: INR 3,000/mo
4 Bed: INR 4,000/mo

Q. Does the apartment come fully furnished? if not how much is the furniture pack? does the developer provide a furniture pack or is it left to the buyer to furnish, what assistance is there?
1 bed: GBP 1,000
2 bed: GBP 1,200
3 bed: GBP 1,500
4 bed: GBP 2,000

Q. India is notorious for poor infrastructure, and Gurgaon at this stage is probably below average. Are there existing provisions available with regard to clean Water, electrical power and public health services to serve Mountain view….
The External Development Charge (estimated at Rs 400 psf) and Infrastructure Development Charge (absorbed by the developer) are payabale to the Haryana Urban Development Authority for the provision of public utilities to these now remote areas. With Reliance having acquired a Special Economic Zone within close proximity to Sector 83, power and all public utilities are expected to be aptly available by mid 2010 when the Gurgaon extension of the Delhi Metro is scheduled to commence operation (Sector 83). Pathway Palace Gardens is only scheduled for completion early 2011.

Q. What information can you provide on the developer?
Pathway Properties (India) Pvt Ltd is owned by Pathway Properties Malaysia Sdn Bhd which is in turn owned by AR International Group Sdn Bhd (ARIG Malaysia). ARIG Malaysia had a turnover of $85M approximately in 2005 from real estate, infrastructure and Oil & Gas projects. The 2006 accounts are not yet available.
Q. Has all planning permission and build permits been obtained for the build? Or is the developer waiting to see how many units are sold before proceeding?
The LOI (Letter of Intent) from the Director of Town & Country Planning is expected within a week as it was applied for a long time ago.
Q. Is there a bank associated and/or providing finance to the developer, if so who?
No. Until the LOI is received, the banks in India are unwilling to provide finance, that too to Indian residents only. We can refer you to a finance company should you require funding to make a purchase.
Q. What investor protection exists in the event the developer goes bust, Can the developer provide full Bank guarantees to protect against risks such as incorrect planning permissions, title deed irregularities or the developer's insolvency?
We do not have bankruptcy insurance, a bond or bank guarantee in place to protect the interests of investors against Creditor Action. The most common form of ring fencing in India is the formation of an SPV, or Special Purpose Vehicle. The sole purpose of this company is to hold the development devoid of any encumbrance and execute the Sale & Purchase Agreement / Lease Agreement with the customer. Hence, if the developer, Pathway Properties (India) Pvt Ltd, is wound up, the development remains untouched as though in a trust.

Please refer to 7.1 Concept at the following link:
http://www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=164

Q. With regard to build quality is there such a thing as a formal guarantee of quality (equivalent to an NHBC certificate) In India there are many poor quality constructions being built and sold to unwitting investors, particularly in the emerging markets?
We offer a 10-Year Structural Warranty
Q. I Assume any contract would be directly between myself and with the developer please confirm?
The Sale & Purchase Agreement will be between the customer and the SPV
Q. As an agent or sub agent, how do you make your fees, are they payable by myself or the developer. If there are fees chargeable for your services what are these?
The developer pays. The quantum is classified information.
Q. They say there are significant stamp duty and tax savings through the lease purchase option, please explain how this is?
Stamp Duty is avoided completely by the Lease Issue option.
Q. Buying via a formation of an Indian company, what are the advantages and DISADVANTAGES of this?
Leasing the company becomes a complicated task as by company formation, you need to show the property is being used for the business, i.e. to house the Directors or Company guests for instance. The company formation route is for foreigners who would like the added security of the freehold and are willing to pay the stamp duty.
Q. What work has Pathway done in the past?
Pathway is a new company but its managerial pool and co-development partners boast a number of completed projects.
In Mumbai, we have partnered with Ranawat Builders who are very active in the Mira Bhayander neighbourhood of Mumbai. Their developments include:
“Shiv Shakti”
“Darshan”
“Shakti Tower”
“Shakti Vihar”
Our developments in India are being overseen by the MD of Pathway Properties (India) Pvt Ltd, Sarvesh Chowdhry, a Supreme Court lawyer specializing in Real Estate Law.
In Kuala Lmpur, we have partnered with:
Maymont Development Sdn Bhd - “Mata Hari – Luxury Condominiums”
Saujana Triangle Sdn Bhd - “Armanee Terrace II”
Crest Worldwide Resources Sdn Bhd - “Crest Jalan Sultan Ismail” .
Q. What is their construction quality?
We are targeting a niche market by focussing on smaller, affordable units to house new arrivals in Mumbai and college leavers. So, whereas the build is good, the finish will not compare with the luxury condominiums we are raising in Kuala Lumpur.