Announcement

Collapse
No announcement yet.

Query on BBA

Collapse
X
Collapse

Query on BBA

Last updated: March 5 2012
14 | Posts
  • Time
  • Show
Clear All
new posts
  • #11

    #11

    Re : Query on BBA

    Don't sign this BBA and tell builder to change it. In this way, he can delay and keep on charging you 5-10% extra after every few months. This is very serious and you can be on the hook for a rough ride. He can justify any cost he would charge you and I am not sure how are you going to deny that once you sign the papers. This could also impact re-sale value or premium of your apartment and it is better to stay away if you could.

    Please disclose the name of the builder if you think it is ok.

    Originally posted by raumybhan View Post
    I have a query on BBA.

    My builder has sent me a BBA which burdens the buyer with the responsibility of making payment of escalated costs, in case the cost of construction increases. In other words, cost of apartment is not escalation free.

    My question is: has anyone else has received any such BBA from their builder ? Is it a standard industry practice ?

    Comment

    • #12

      #12

      Re : Query on BBA

      New DLF project in sec 91/90 has this ridiculous clause is what I heard ... Regal gardens... May be others

      Comment

      • #13

        #13

        Re : Query on BBA

        Originally posted by djvjain View Post
        Don't sign this BBA and tell builder to change it. In this way, he can delay and keep on charging you 5-10% extra after every few months. This is very serious and you can be on the hook for a rough ride. He can justify any cost he would charge you and I am not sure how are you going to deny that once you sign the papers. This could also impact re-sale value or premium of your apartment and it is better to stay away if you could.

        Please disclose the name of the builder if you think it is ok.
        This is yours truly DLF and if you ever will sign this BBA, be rest assured you are writing a blank check to the the biggest bankrupt firm in India whose accounting practises and treatment of minority shareholders has lead to very serious remarks from almost all analysts.
        Not even your maid will sign such legal documents for you if you ask her and you being educated cannot claim you did not know what was written in the BBA. That was the defence put up by DLF and other legal professionals during the CCI trials. They said the person who has signed the legal doc cannot claim to be not understanding the implication of the terms. In fact DLF contested if the argument (that the signee did not understand the terms) was accepted then all the legal documents are worthless because anyone can claim he does not or could not understand what was written on all legal docs of the nation.
        Ask your Lawyer if he has ever seen anything like this in his life and would he sign it.
        Ask any economist friend or professor of local commerce college who will explain to you that an apartment whose cost can rise as per inflation is not a hedge against inflation any longer.... its a invitation to hell. Duly signed by you in a perfectly tight legal document.
        It pains my heart to see how twisted someone can get. Sala paap lagega yaar, agar koi sharif aadmi ismein phas gaya to..

        I also understand some of BPTP buyers have more or less signed similar agreements. I saw a similar doc for a BPTP project in 70A and I explained to my friend he should dump the radioactive stuff asap...

        Trust me ... this is not real estate, this is not investment. This is worse than your worst nightmarish derivative hell.

        Comment

        • #14

          #14

          Re : Query on BBA

          DLF used to have this clause way way back in time as well , then they decided to use the USP that we will not charge escalation anymore , and now they are at it again .
          Also what i have been told about is that escalation would be charged on basis of RBI index issues every 6 months and would only be applicable if construction is dome within stipulated time of 36 or 42 months .

          P.S. TATA PRIMANTI also has an escalation clause BTW , which has not been discussed in the forum so far .

          Comment

          Have any questions or thoughts about this?
          Working...
          X