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Builder defaults to NOIDA : Options available to Buyers

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Builder defaults to NOIDA : Options available to Buyers

Last updated: February 12 2012
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  • Builder defaults to NOIDA : Options available to Buyers

    RE in India has been screwed up largely & is being continuously to do so. Its because of lack of unity in buyers. Investors's role in RE market has let the clouds of uncertainty, non-clarity to continue. Investors buy at a very early stage of a project, hold on to the purchase & let the builder to continue with increase in rates even after no actual sell (in large no.) to end users. Builders keep increasing the rates, that help the investors to hold on for longer term that again helps a particular project to outshine other projects and non-justified prices are achieved through the nexus of builders, investors & brokers.

    End user then gets less choice to choose among the good projects but to fall under the trap of builder-investor-broker.

    Lower floor inventory is sold out (or pretend to have been sold out) much before the project (or a particular tower in a project) is launched.

    As have been talked no. of times that clauses in BBA are bent to favor builder & neglect the interest of buyers. Points to these clauses are never raised by Investors and a particular project is shown as among the best available. This helps the project to come up as best even beside many issues which in long term will be a matter of concern for end users.

    End user should read few very important documents (don't go with any particular builder's name though its important but its not the only point for an end user to look at). A good (word good is "exaggerated" for most of the builders) builder will show the format of following documents before booking/purchase if demanded (to see) by the buyer :

    1. Builder Buyer Agreement (BBA)
    2. Lease Deed (executed between concerned authority & builder, if plot land is on lease hold)
    3. Sub-lease Deed (executed between authority, builder & buyer)
    4. Approvals from Air Authority of India, Environmental Clearance, Fire Department, Municipal Corporation

    There is still uncertainty over Sub-Lease Deed. Builders say they don't have the format of Sub-lease deed & shall get through NOIDA only when flats are ready for possession. A builder making a project worth 1000's of crores & fell blind/dumb to NOIDA to ask them under what conditions apartments shall be transferred to individual buyers. STRANGE! Main clause to look at in this sub-lease deed is "What if builder fails to pay Premium payment to NOIDA and whether individual buyers will end up paying the rest amount to NOIDA"?

    When some critical issues are raised to any builder by a buyer, builder doesn;t reply. The so called best "Customer Care Services" by a particular builder among all the builders suddenly becomes dumb & deaf.

    Well, recently CCI decision towards DLF's "The Ballaire" project on golf course road, Gurgaon have lit the hope for end users. I hope, same petition shall not be required by buyers in NOIDA but they should remain attentive if required to do so.

    In case of NOIDA, well before possession buyers can file an RTI to NOIDA regarding payment plan provided to Builder and seeking the interest of buyer in case of payment default by Builder. Some petition is also possible, CCI might not be (or might be) appropriate authority to look into this matter.
    I am consulting my lawyer friend regarding this, will update here.

    Request to experienced people to share their views.
    Attached Files
    Last edited September 4 2011, 01:43 PM.
  • #2

    #2

    Re : Builder defaults to NOIDA : Options available to Buyers

    can u please brif it up and explain in short.... as i understand it is abt giving rights to the buyers against those agreements with builder in which there are many clauses in favour of the latter.
    Thanks,
    Nigam

    Comment

    • #3

      #3

      Re : Builder defaults to NOIDA : Options available to Buyers

      Dear LChand Ji.... we appreciate your apprehensions.

      There will be greater transparency when buyers join hands and demand answers. Currently there is a league between Govt, Authority & builders and no concerns for genuine buyers.

      Just to give example:- UP apartment act which was passed in 2010. It provides for everything that you have mentioned. There is also a Regulator under it. But who will implement it? Who will ensure it is followed by all builders? Had builders and authority ensured compliance of apartment act, there would not have been NE land fiasco.

      Pls ask your lawyer friend how can we buyers ensure right enforcement of said law?

      Comment

      • #4

        #4

        Re : Builder defaults to NOIDA : Options available to Buyers

        Probable format of Sub-lease deed could be a declaration form along with Sub-lease deed of Apartment.

        Please see the below pages from UP Apartment Act 2010.
        Attached Files
        Last edited September 4 2011, 02:50 PM.

        Comment

        • #5

          #5

          Re : Builder defaults to NOIDA : Options available to Buyers

          Just one request...we all admit that you are pointing to a genuine concern...but whether you raise the concern once or keep raising in all the threads will not effect the matter much.

          Saw one thread regarding option of selling Noida flat and moving to Gurgaon...being honest, if someone is really soooo worried on this issue...he should straightaway switch the investments, without even waiting for views of others.

          Its like, at work, if we have 1 or 2 issues in office, we can wait and expect management to resolve them..however, instead if we feel like cribbing about issues all the time, its perhaps high time to change job, right?

          Nothing against you my friend...just dont want your valuable posts also to become irritating like posts from other common aadmis in this forum.

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          • #6

            #6

            Re : Builder defaults to NOIDA : Options available to Buyers

            My posts can be simply ignored. Its very easy. We daily scan through whole newspaper but read only in what we are interested in.

            Originally posted by ca.anurag View Post
            Nothing against you my friend...just dont want your valuable posts also to become irritating like posts from other common aadmis in this forum.

            Comment

            • #7

              #7

              Re : Builder defaults to NOIDA : Options available to Buyers

              Originally posted by LChand View Post
              My posts can be simply ignored. Its very easy. We daily scan through whole newspaper but read only in what we are interested in.
              Okay...certainly your call.. I gave you the side effects of repeatitive posts...that ppl may not put that credit on posts, which they earlier used to give. If the direct intention is - that these can be ignored....so be it!! Pls continue....:-)

              Receive daily tens of sms for selling property...this is what we do...simply ignore! That's the final Indian outlook...sab chalta hai...

              Comment

              • #8

                #8

                Re : Builder defaults to NOIDA : Options available to Buyers

                Dear Chand

                Land premium is the issue in all your posts. Then why not buy in a under construction project where builder has paid 100% of the premium.

                I give you an example-- Sector 45 -- Nri Residency and Prateek Stylome. Both the land parcels are 100% paid to NA. Why, becuase without that Prateek could not have bought from the original allottee. This is a clause in the CGHS of NA that full premium has to be paid before further sale is possible to third party.

                Look into these projects. i think you can offset your LB flat with either of the two projects (without any additional premium). For other readers also please look into these two most safest projects as on date that are under construction where 100% land premium is paid.

                Comment

                • #9

                  #9

                  Re : Builder defaults to NOIDA : Options available to Buyers

                  There is one more thing can occur in future... whole world will be finished in 2012... then why to worry for anything which gonna happen after that....

                  We have bought flats on authority lands... not put money in chit-fund scheme..

                  Comment

                  • #10

                    #10

                    Re : Builder defaults to NOIDA : Options available to Buyers

                    We were waiting for your sensible comments. I feel so relived now. Thank you so much for your inputs on the said concern.


                    Originally posted by ashokyadav View Post
                    There is one more thing can occur in future... whole world will be finished in 2012... then why to worry for anything which gonna happen after that....

                    We have bought flats on authority lands... not put money in chit-fund scheme..

                    Comment

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