Frontline builders
Let me confirm first.
Frontline builders are not builders; they are just a third party doing marketing on commission basis.
There are lots of small scale builders in Bangalore, but for them marketing is difficult due to less man and money. Frontline is catching those people are making some arrangements with them and market their flats. Normally the business is builder may be ok with some cut off money (some x amount per sq ft). But frontline will sell these properties with higher rate + some invalid service tax + higher registration value. What ever the difference money coming with builder demand, is the profit of frontline. When they collect the registration and tax it will calculate based on the final price we got. But while doing registration no builder will show the actual price on paper and accordingly the registration amount and tax will be less than the actual. But this benefit is not coming to customer, frontline will absorb.
And frontline is no way into any of the construction issues. Taking care of customer, after sale service etc are just gimmicks because they are not the partners or investors in construction. If any problem with construction comes with flat the customer has to deal with builder, not frontline. And builder attitude will depend on his character and we cannot make a general statement as we won’t get service. We may, we may not, its up to the builder.
But one thing is sure, frontline is getting business. What ever is coming its profit for them because there is no investment.
And about 100% loan, frontline is having another set up with ICICI. As you know private banks will do anything to get customers. What they are doing is , they forge the document putting very high value on sale agreement. Based on that bank will give loan. Its simple as that. But you may end up in paying more tax.
While dealing with frontline, my advice before paying advance you check the quality of work, builder etc. if you are fully satisfied then only go for advance. And if you are going for 100% loan, make sure that the loan amount is considering your total advance also. The promises like they will refund the difference money etc is remain as promises always. Always make sure that at the time of registration no extra money is with frontline.
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