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Should Payments Be Made Only Against Demand Letter?
January 12 2011 , 07:11 PM   #1
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Should Payments Be Made Only Against Demand Letter?

Hi,

As per normal terms -

10% on booking
10% within 60 days
10% within 90 days...so on..

My question is... should we make payment on receipt of demand letter only or on as per own following the schedule...

Say, if demand letter does not come on or before 90th day..should we proactively make payment or wait for demand letter.

Thanks.
January 12 2011 , 07:47 PM   #2
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Many Developers do not stick to the timeline of demanding payments, as per schedule & some deliberately delay sending Demand letters, so as to claim interest on delayed payment .

So, it is a Catch 22 situation .

So, join in forums like this & project specific groups on the web, where u will keep on getting updated information .
January 12 2011 , 09:34 PM   #3
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So, to avoid any interest penalties...we should make the payment in time as per schedule even though there is no demand letter from the builder.

Thanks.
January 12 2011 , 09:36 PM   #4
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No, that would be entirely wrong, unless u have hordes of money stacked & it is rotting .
January 13 2011 , 09:08 AM   #5
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Quote:
Originally Posted by saihtul
So, to avoid any interest penalties...we should make the payment in time as per schedule even though there is no demand letter from the builder.

Thanks.
We should not pay anything without demand letter but we should follow with builder as sometimes courier / post are missing...
January 13 2011 , 09:13 AM   #6
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Thanks Tinesha...

I understood your point here now !
January 13 2011 , 09:13 AM   #7
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my suggestion pay the time bound installments( first 2/3) as per schedule ( builder usually delay demand for these and still charge interest) and balance as tinisha suggsted on demand by builder....

Quote:
Originally Posted by tinesha
We should not pay anything without demand letter but we should follow with builder as sometimes courier / post are missing...
January 13 2011 , 09:25 AM   #8
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As tinesha said, keeping in touch with the builder will help .
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