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Whats the Credibility of quot Credit Notes quot

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Whats the Credibility of quot Credit Notes quot

Last updated: December 19 2012
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  • Whats the Credibility of quot Credit Notes quot

    Hi All .....

    Here i am going to focus on the new trend in the real estate
    Market.

    " Credit Notes " is given by the brokers / Company apart from the
    Fix Discount.


    It works like this , In a particular deal .... The broker or company
    offer a fix discount and additionally they offer A Credit note ..

    My point is if the company is willing to give rebate why they can
    make it in a Whole sole Discount , or Credit note is just a Candy ,
    Which remain just a piece of paper.

    Plz Share your valuable comments , views and past experience related to the Topic.



    Regards

    Prashu
  • #2

    #2

    Re : Whats the Credibility of quot Credit Notes quot

    Hi Prashu,

    Nice Thread started.Honestly speaking,I was about to start something like this which will share not only this issue but all the things to take care while dealing with brokers.

    My take on that :

    1. Credit notes are just eye candies for all the new investors.
    2.Usually,these range from 1-2.5% of your BSP(depending how hard u negotiate & watz the broker's pie)
    3. Usually,a broker will pay the amount once an agreed amount is paid to the builder by the investor.
    4. All brokers have different modes of paying,it depends on the payment plan chosen by the investor.
    5. While making the booking,the broker will promise you to repay the credit note money within 1 week of making the builder's payment.Once you start chasing,you will get all excuses starting from-The Builder is not paying our pie.
    So,sometimes you start thinking negative about the builder as well,Its just a thought.

    My conclusion is that if you are getting 1% lesser discount from the builder directly instead of taking debit note,go with that.People may disagree.

    Its my own experience that I am sharing.I am struggling for last 5 months to take back my credit note money from UNICON ass$#**s.
    Last edited February 23 2011, 12:15 PM.

    Comment

    • #3

      #3

      Re : Whats the Credibility of quot Credit Notes quot

      Originally posted by Prashu View Post
      Hi All .....

      Here i am going to focus on the new trend in the real estate
      Market.

      " Credit Notes " is given by the brokers / Company apart from the
      Fix Discount
      Nice thread prashu. What you have refered is a very small thing. What happened if project is on hold and developer is not in position to complete the project? And Investor has already paid 40-50% payments. This credit note was issued to investors by a leading international developer with a validity of one years. Even though this has not happened in India but many Indians have suffrered because of this credit notes and and lost more than 50% of their investments. Have a look on the link.

      gulfnews : Emaar denies issuing credit notes


      http://finance.dir.groups.yahoo.com/.../message/43502
      Last edited February 23 2011, 12:09 PM.

      Comment

      • #4

        #4

        Re : Whats the Credibility of quot Credit Notes quot

        Credit notes r a piece of paper, until honored, but that has almost nil chance .

        As Arora_B said, go with the builder for an original booking, even if u r getting some less direct discount, the CN being offered by the broker may turn out to be a useless piece of paper .

        I too have had some issues with a broker, who is refusing to honor his commitments . I would be talking that Co./broker to a Consumer Court shortly .

        Originally posted by Arora_B View Post
        Hi Prashu,

        Nice Thread started.Honestly speaking,I was about to start something like this which will share not only this issue but all the things to take care while dealing with brokers.

        My take on that :

        1. Credit notes are just eye candies for all the new investors.
        2.Usually,these range from 1-2.5% of your BSP(depending how hard u negotiate & watz the broker's pie)
        3. Usually,a broker will pay the amount once an agreed amount is paid to the builder by the investor.
        4. All brokers have different modes of paying,it depends on the payment plan chosen by the investor.
        5. While making the booking,the broker will promise you to repay the debit note money within 1 week of making the builder's payment.Once you start chasing,you will get all excuses starting from-The Builder is not paying our pie.
        So,sometimes you start thinking negative about the builder as well,Its just a thought.

        My conclusion is that if you are getting 1% lesser discount from the builder directly instead of taking debit note,go with that.People may disagree.

        Its my own experience that I am sharing.I am struggling for last 5 months to take back my debit note money from UNICON ass$#**s.
        Please read IREF rules | FAQ's

        Comment

        • #5

          #5

          Re : Whats the Credibility of quot Credit Notes quot

          Credit notes by CREDIBLE source makes some sense (I said some!!).... rest are useless paper and subject to legal battle... you know the legal system quite well, shall I say more?

          Comment

          • #6

            #6

            Re : Whats the Credibility of quot Credit Notes quot

            Its like a lottery. If you get lucky, you won ?

            Comment

            • #7

              #7

              Re : Whats the Credibility of quot Credit Notes quot

              Originally posted by LChand View Post
              Its like a lottery. If you get lucky, you won ?
              rather a treasure,u run pole to pillar to get this.If u get it,then lucky else keep rubbing the Aladdin's lamp.

              Comment

              • #8

                #8

                Re : Whats the Credibility of quot Credit Notes quot

                ondabhai, who is Credible & who is not, again gets into disputed territory . One should avoid CN's, as far as possible, even if it means sacrificing some part of the total discount on offer.

                Originally posted by ondabhai View Post
                Credit notes by CREDIBLE source makes some sense (I said some!!).... rest are useless paper and subject to legal battle... you know the legal system quite well, shall I say more?
                Last edited February 23 2011, 01:16 PM.
                Please read IREF rules | FAQ's

                Comment

                • #9

                  #9

                  Re : Whats the Credibility of quot Credit Notes quot

                  Credit notes are issued for a purpose ... To give credit ...

                  All you need to do is make sure that the source is credit worthy and you'll be fine ...

                  Comment

                  • #10

                    #10

                    Re : Whats the Credibility of quot Credit Notes quot

                    Originally posted by pulkitgera View Post
                    Credit notes are issued for a purpose ... To give credit ...

                    All you need to do is make sure that the source is credit worthy and you'll be fine ...
                    How would you rate the source as Credit worthy.Again,its a long debate.
                    How would you rate Investors Clinic & Unicon in these terms.
                    I am struggling with one of these names for 5 months & my frnd for 3 months.
                    If you go with small brokers,then noone knows if they are sub-brokers or what.

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