Relevence of bank guarantee in Assured returns commercial projects - Indian Real Estate Forum

harpreet19 · 26-12-11

Doe's bank guarantee gives investor an extra security? I just came to know that bank guarantee is only for 1 year and after every year the developer has to renew that bank guarantee. My query is isn't bank gives guarantee for minimum of say 5 years (period of assured returns) or the developer has to renew it after every year. If developer doesn't renew the same, doe's bank guarantee makes any sense for the investor.
What should the investor check in the Assured return bank guarantee commercial projects to protect his rights.

Thanks
Harpreet Singh
Mob: 9891041492

sanaryamni · 27-01-12

you are right .bg is only valid for a year. it needs to be seen whether bg is protecting your rights. most bg's are loaded in favor of builder giving them a handsome exit.for a bg you dont have to pay, just give an undertaking to bank you will honor your promise.

rajamohan07 · 20-02-12

Hi I am planning to Buy a residential unit in Gurgaon and just wondering if a Developers goes burst what happens to my Deposit and stage payments paid to the builder.
Does Bank or any other institution provides any kind of protection?
What happens to my Loan which i have borrowed from Banks who is responsible ?
Does Bank liquidates Builders assets and refund our deposit ?
Or for life we will be responsible for loans taken without Home?
Please help .
Thanks

26-12-11	#1
harpreet19 New Member Join Date: Aug 2011 Posts: 34 Thanks: 8 Thanked 0 Times in 0 Posts	Relevence of bank guarantee in Assured returns commercial projects Doe's bank guarantee gives investor an extra security? I just came to know that bank guarantee is only for 1 year and after every year the developer has to renew that bank guarantee. My query is isn't bank gives guarantee for minimum of say 5 years (period of assured returns) or the developer has to renew it after every year. If developer doesn't renew the same, doe's bank guarantee makes any sense for the investor. What should the investor check in the Assured return bank guarantee commercial projects to protect his rights. Thanks Harpreet Singh Mob: 9891041492

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27-01-12	#2
sanaryamni Member Join Date: Mar 2009 Posts: 86 My Mood: Thanks: 28 Thanked 92 Times in 17 Posts	you are right .bg is only valid for a year. it needs to be seen whether bg is protecting your rights. most bg's are loaded in favor of builder giving them a handsome exit.for a bg you dont have to pay, just give an undertaking to bank you will honor your promise.

20-02-12	#3
rajamohan07 New Member Join Date: Feb 2012 Posts: 2 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts	Hi I am planning to Buy a residential unit in Gurgaon and just wondering if a Developers goes burst what happens to my Deposit and stage payments paid to the builder. Does Bank or any other institution provides any kind of protection? What happens to my Loan which i have borrowed from Banks who is responsible ? Does Bank liquidates Builders assets and refund our deposit ? Or for life we will be responsible for loans taken without Home? Please help . Thanks