Builders failing to finish project on time

[namburi]

Hi Members,
In the recent times we are hearing about reputed builders like amarpali, nitesh, gaurson, Dlf, salarpuria,jaypee, DB reality and many failing badly to handover projects on time or failing to provide the facilities promised during the time of sale (As reported by most English news channels - cnn tv18 #WhereIsMyHome ).Nitiesh forest hill, Nitiesh hyde park in yesterday cnn tv18 series residents say nitiesh utterly failed to maintain/provide basic facilities like bescom, stp, lift, security etc and nitiesh forced the buyer to sign 10 year maintenance agreement at buyers cost other wise registrations wouldn't be done . Its not just nitiesh but many builders are in the same condition .
Biggest builders in Bangalore (prestige, shobha, purvankara,slarpuria, brigade) who never advt other than hoardings are just filling all the ad times in FM, Paper, Tv and they are selling flats in projects that where said to be 100% sold out in 2014-15 itself .
Most on going apartments that are said to be 100% sold out are putting "for sale banners" with interesting offers .New projects are marketed with offers like "pay now one lac and remaining after handover " , "pay now and get an iPhone
One has to understand that if real estate is not stable it has a devastating effect on economy , doesn't mean that it should grow in un-realistic figures at the cost of common man.This sector is widely unorganized which is giving huge opportunity for exploiting buyers, workers, vendors.
Does this show how bad the apartment industry is going through ?

We understand its not just the mistake of builders but buyers too .Buying an apartment with out even understanding the basics about it, not even knowing what they are going to get when completed? , Is it worth to spend so much money on it or not ? and many more reasons .Its the buyers who are buying it with out making builders responsible for what ever they are selling.
After closely observing all these scenarios, thought we should put our part of contribution to educate the new buyers in terms of what to expect and what not to expect from builders in a holistic way .
We would request all those members living in apartments to put your versions of problems faced by you while you took handover of your new apartment, running problems while maintaining the apartment , how is the builder supporting in solving them .
This session is not to degrade some builder name or to support some one but its to educate the buyers about dos and donts , their rights , what in case builder fails, what in case buyer fails to pay full amount, are the promised items delivered in complete state? etc

Hope everyone will contribute to this session to help new apartment buyers .One has to understand that just bullying the builders is not a solution rather we should make the builders responsible and get deliverable.

Regards
ADMIN

[msn1270]

Dear Admin

Very good initiative.

In my experience, there is unfriendly business attitude from many of the builders/developers...etc. For everything they demand lakhs of rupees upfront
even for sharing the basic documents for legal verification. whenever any buyer raises certain Queries/changes for some of their clauses of terms & Conditions,
majority of them has just one response. This is our T&C. If you are interested in our project, buy it as it is, we don't change anything in the papers. Else don't
waste our time. Majority of the T&C are one sided which always benefits the builder/developer & they always consider buyer has no rights in their project
other than paying the money and received what they throw at him.

Many of the youngsters have the feeling that, buying an apartment in certain location/builder/feature is a matter of prestige for them in the society. For that,
they are ready to do take risk blindly. There is a need to change the buyers who are blindly falling into the builder's Trap by looking at the colorful brochures & assurances.
Majority of the buyers doesn't even aware of the basics of the system, what is its effect on them at present or in future. Without even looking at the terms & conditions,
validity of the papers, simply, they pay the money and repent for their mistakes for their rest of the life.

Also majority of the Builders claim, there project is BBMP/BDA Approved. But if you ask for Completion Certificate & Occupancy Certificate, first they try to convince you,
its not at all required for any bank loan or for any other purpose. If you insist for the same again, then slowly they say, can't provide these certificate as they have violated
during the construction from the sanctioned plan. So their project is not a approved one (nothing but, illegal construction).

[swamy_blr]

Hi,

Good initiative...

The other Point to consider in Apartments are Builders consider the Super built up area while calculating the Selling price rather on Carpet Area.
Almost 30 to 35% area is less when Buyers get the Carpet area for actual use. They should not calculate other areas in line with Carpet area for eg : Parking, Corridor, Play area etc....

Sometimes Flat owners proudly say mine is 1800 SQFT but actually the Carpet area is much less but they pay for full 1800 SQFT at full price.

Prospective buyers should consider while purchasing the Apartment and take the breakup of this and negotiate it other than Carpet area.

[Vishwanath]

Few of my experiences on how builder will raise price and ready to negotiate later. This only shows Bangalore realty market is over hyped.

The following are the my visits to reputed builders in Hosur road in last 2 weeks. I am not sure whether I can mentioned the builder name here and hence masking.

1. S*****a O***is - Hosa road, near Bosch Naganathapura plant- I visited couple of times as I wanted to buy 2bhk. The 2 BHK of size around 1200 sqft (Dont remember the exact number its little lesser I think) and they are quoting 1.07 crore. I knew that when It was launched 1 year back the launching price was ~75 lakhs. Now they have hiked the price and always say the all units are booked and not available.

Later the sales person was ready to negotiate to 92 lakhs inclusive of everything. The completion is 2019.

2. S*****r*a S****va - Near Kudlu Gate - Initial quote was ~1.10 crore or little less for 1290 sqft. and completion date is 2018 June. And Salesman said only few flat available on one or two towers. I clearly mentioned that I do not need above seven floor. He said he will check with the land owner share if he can get better price as builder quota is already over booked.

Later salesperson called me to negotiate to 75 + registration charges from land owner quota and I am not sure how much is it true.


3. P******ra W******end - Opp to Kudle Gate - When I visited there was no model flat, they show everything on CG video. Never the less they are quoting for less than 1300 sqft. ~1.13 crore. That to only few flat available and will be soon get over. I knew it was launched for 4500 sq ft. 2 years back and 2019 being the completion date there cant be so much appreciation. I tried negotiating to 75 lakhs and which they disagreed. Also to book the flat you need to go for home loan with 10:80:10 scheme.

Later I have received a call from a <unknown> person promising me with very good deal on this project. He said he wants to personally meet me. When I met him he offered me for 80 including everything and that was a resale property. The person who booked in 2013 end for 56 lks and now ready to sell for 80 inclusive of everything which includes sale man commission of 2% and 2% penalty to builder. I am thinking he is quoting somewhat less than the builder and it cant be 200-300 rs appreciation for 2 years even when single tower is not complete OR I may be completely wrong here. I am not sure here what is right price though

On overall I just want to say Bangalore realty is very much hyped. They only negotiate if you are a serious buyer. Dont get into their trap. One question is very obvious is that why are they spending so much money in print media to advertise their surplus (eg: 1400 already sold and only 199 left, 10:80:10 scheme) if all their inventory is over booked.

Note: The some of the numbers I have mentioned here may be 100% accurate as I do not remember them. I have shared these info for benefit of others and no other sales, promotion and defaming intentions are involved here.

[sam_m400]

A good initiative....

There is program being started in CNN-IBN recently to showcase the harassment of builders to buyers.... I happen to see they are not only looting on violations/over /carpet area but on timelines i.e you pay your EMI and they get around 60% payment but no delivery even after so many years... There are many builders even in Bangalore not kept their promises as per agreement like provisions for club house, gym etc.. Govt kept a blind eye as well on not controlling it with the only asylum to everybody to step to the court which everybody hesitate to do as it would take years to complete.

'Where is my Home?'~ A CNN-News18 Campaign | Media Infoline

http://mediainfoline.com/special/where- ... -campaign/

[santosh_vp]

I am hoping the Real Estate Regulation Act which would be reality from May2017 mostly should tighten the builders nose. I am not seeing any such signs of cautiousness as of now from developer. But I am hoping the developers will stop those false promises, pre launches, 20-80 offers etc.. for new launching projects now onwards.

My suggestions to any new buyers is wait for an year, until the RERA becomes operational and projects are registered. I am sure developer will try to lure people before that with loose and one sided agreements as currently. But I would suggest investors not to be a prey.

Though it is quite easy to say that buyers should not be get in to trap of builder, it is not easy to abide as said. Builders donot change their one sided agreements. All builders have same kind of agreement. Where can a genune home buyer go? It is as good as saying don't pay bribe in sub register office. I have booked a flat with a reputed builder. They said price is little negotiable. But I asked them can I negotiate contractual terms. They said contractual terms are same for all projects it cannot be changed at all. The only hope is RERA will define impartial guideline for contractual agreements. The only way curb all these illegalities is bring is stringent RERA act, curb black money, crony capital flow in to the real estate.

[sam_m400]

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect homebuyers as well as help boost investments in the real estate industry. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force on 1 May 2016 with 69 of 92 sections notified.[1] The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.

This law says we could approach the govt: for any grievances, they have to have 70% funds in banks for the projects, all the plan/details are to be uploaded in their site ,ambiguity of super built up area will be abolished as you can charge only on build up area etc..It is good act ...but doesn't see being implemented till now..

This is bill is in force from 1 May 2016 ...but not sure why we are not following.... Does the 6 month grace period implement is in place ? If that is the case by November it should be enforced by the government... Anybody have any information on this?

[santosh_vp]

It has become a law from May 2016. However there is a 6 months time given for adopting and framing laws at states level. All states must setup their tribunals for project registration and dispute hearing by 1 year. So essentially we should see something concrete by mid of next year.

[sam_m400]

Thanks santhosh for the information... That seems to be the good way ahead... Hope we will see a good time for buyers