Can anyone / Legal authority can guide me what is the validity of a District Consumer Forum Order against a Builder for not awarding the Completion Certificate? Actually, the District Consumer forum has ordered to get the completion certificate within one month, but the builder has not yet obtained the same.
In case of the parking space and the garages, the builders are supposed to hand over the parking space and the garages to the housing society, instead the builders are selling for a huge premium. I wonder when will the authorities take action against this erring builders.
Further most of the properties are sold at at cheque cash ratio of 50-50 to 80-20. I wonder what is the finance ministry doing. The buyers hard earned white money gets converted to black money with the builder and the builders doest not pay any tax on it. The buyers property is worth only 50-80 percent on paper against its actual worth.
RE:un-regulated real estate market
by GN on Oct 22, 2007 05:05 PM Permalink
The parking is a real issue to worry. parking space outside the building is been marked as common parking space and the parking space within the building (Ground floor) been sold to the room owners. is that legal !
RE:un-regulated real estate market
by shiva kumara on Oct 22, 2007 05:27 PM Permalink
With the check cash ratio, both the buyer and the builder benifits because the building will be registered at a lower cost. And registering authority charges exorbitent commision and bribes for the pathetic service that they offer. Do they deserve all the property tax? I would say they should improve the service and transperency and reduce the fraud to be worth the commission that they eatup.
RE:un-regulated real estate market
by Bob Seth on Oct 22, 2007 06:49 PM Permalink
chidambaram has given tax incentives to the builder community (the builders are so poor), the congress is funded by builders
The builders always gain as mentioned in the article and get shielded from problems. They also have the advantage of pre-booking and extracting 80-90% of the money in the first couple of months itself. Even reputed builders collecting a majority of the amount well in advance should be regularted by the authorities so that consumers pay based on progress of the project. If a project get delayed by 6 months or a year, the payment for it should also be deffered, which can help genuine customers who get cash strapped due to delays.
None of the above works as all these builders have strong back up legal pundits and they work round the clock in making the agreements fool proof in the favor of builders. Further if u start reviewing and challenging the different clauses the builder has his prerogative not to enter deal with u. Further the current situation is such that any project is launched the 100% gets sold out is 24 to 48 hrs. Where is the time and opportunity for you to review and challenge and protect our interest? India is booming. So middle class buyers have no say or role to play.
People who become capable of buying a house have different options before them, which they dont consider objectively. Firstly whether to buy or rent, where most people go for the former based on some assumptions, even though they are not sure of staying in the same city or ability to maintain the property, collect rents, visit regularly, etc.
The second aspect is what type of house. Options range from individual home, flat, twin houses and choice of old and new homes. People get attracted and always fall in to the trap of buying the latest offering at a steep rate. Though they pay in installments, the costs get inflated very well putting them with no cash in hand or forcing them to go for a higher loan amount. If there is an existing used property (well maintained) available at a reasonable rate, and provided you have ready cash or loan its better to opt for the same instead of a brand new house.
Moreover as mentioned earlier some people ignore the purpose for which they buy a house, whether for investment or for self occupation. People who buy property away from their current residence or native cities have a tough time monitoring the property, maintaining it, etc and are left with an unmanagable investment which fetches low yield.
