Builder Issues

Issues related like delay to any other

Home builder delay may need legal action


When to take legal help

Generally, most home buyers remain in a dilemma: to file a case against the developer or not? Most don’t want to get involved in a long drawn legal process. Some are even scared of going against a builder. “The larger and less wholesome truth is that the current legal dispensation is ill-equipped and under-regulated to offer complete consumer protection in matters related to real estate,” said Anuj Puri, chairman and country head, JLL India. But, “many examples of customers obtaining favourable decisions upon approaching consumer courts exist, and the power of these forums should not be underestimated,” he added.

So, if you are an aggrieved home buyer, you should not hesitate in taking legal help. “Once the due date for possession is over, the buyer should visit the site and take stock of the situation by trying to assess whether the period of delay will be negligible or considerable. If the buyer feels that delay will be considerable, it would be pointless to wait further, and she should immediately file a case,” said Jehangir Gai, a Mumbai-based consumer activist.

You can also approach the court for other issues as well. “When it comes to deviations from the original project plan, which can result in a shortfall of common amenities or drastic changes to the units themselves, the customer should take action as soon as these deviations come to light,” said Puri.

But do remember that there is a stipulated time frame within which a case has to be filed by home buyers. “The consumer court will not entertain a complaint after the limitation period of two years is over from the date of cause of action. Hence, the consumer has to be very alert and should immediately file a case in the consumer court. Don’t keep the matter pending,” said Arun Saxena, president, International Consumer Right Protection Council. However, “with regard to real estate, since there will be a continuous cause of action, this provision (2-year timeline) may not strictly apply,” said S. Saroja, director, consumer advisory and outreach, Citizen Consumer and Civic Action Group.

There are different avenues that you can take. “A homebuyer can approach the consumer court, civil or criminal court, or the Competition Commission of India (CCI), depending on the nature of complaint,” said Saroja.

Things to do

As in any legal matter, you should posses evidence to prove your stand or allegation. Get all papers and documents ready—advertisement brochure, booking receipts with payment details, any letter sent by the developer, signed agreement, all payment details, emails exchanged, photographs collected, and others. Avoid verbal communication.

“It is important that the consumer maintains written correspondence with the builder at regular intervals during the course of construction, highlighting issues then and there, as this will be a strong point in her favour when she approaches the Consumer Fora at a later stage,” said Saroja.

However, before going for legal action, you should have raised the issue with the developer. “Buyers should always send a legal notice before approaching any forum or court with their grievance. They should have taken objection with the builder against violations or illegal demands by sending a letter so that evidence can be created in their favour to be produced at the time of proceedings,” said Pathak.

So, if you are an aggrieved home buyer, contact others and form a group. Note down the issues and information available with each person. Approach the developer as a group. If no resolution is in sight, take legal advice from an expert.

Delay of six months to a year has become commonplace in residential real estate, and most buyers expect it. But a longer delay puts additional financial burden, and filing a suit against a developer is justified.

Doors To Knock On…… Read ahead this article

 

Builder delays will cost you time and money


Gaurav Prakash, 35, is a senior solution architect working with Ericsson India Ltd, in Gurgaon. But a problem that he can’t find a solution to is his house. Towards the end of 2011, he along with his wife Sashi Pandey, a 35-year-old senior manager in a telecom company, bought an under-construction apartment of about 2,000 sq. ft in Dwarka Expressway, which falls roughly between Gurgaon and Dwarka (on the south-western periphery of New Delhi).The house cost them Rs.70 lakh, for which the couple took a home loan. They were told that they will get possession by around June 2014, but that didn’t happen. And like scores of other urban Indians, they too, are still waiting for the house two years later.

But apart from the house being not available, what bothers them, and others alike, is that they are not able to make use of the substantial tax benefits available on a home loan. And then there’s the rent they continue to pay. “We are paying Rs.52,000 as equated monthly instalment (EMI), andRs.28,000 as rent every month,” said Prakash. So, it’s a triple whammy. Here’s why.

The couple had taken a construction-linked home loan. For two years, construction progressed well and the developer asked for about 90% of the cost based on the stage of the project. But after that, construction almost stopped. As of now, the estimated date of possession is June 2016.

The two-year delay in completion has substantially increased the effective cost of purchasing the house. And most of these costs will not get added while determining the cost of acquisition at the time of calculating capital gains if and when the house is sold. But that comes much later, since the couple doesn’t have the house yet, as also many other home buyers.

Project delay not only restrains home buyers from shifting into their own houses, but also has a big impact on the cost of purchase. Here’s a look at how much that impact can be and how it happens. Read Ahead

Problem No.1: Paying both EMI and rent

Problem No.2: Loss of home loan tax benefits

Problem No.3: Loss due to income tax

Problem No.4: There are other costs also

Mint Money take

If you buy an under-construction property, and it gets stuck, there is limited scope of getting out. Not only do you have to pay both EMI and rent, if you want to sell the house, finding a buyer for a project running behind schedule can be difficult. Even if you do find a buyer, you may have to incur a heavy loss, as you may not be able to get the right price to recover the cost.

If you are an end-user, selling and buying a house in a completed project may not be a feasible option. You will have to sell your current house at a loss and the new completed house will come at a premium.

So, first try to look at the other options. “Look at the clauses in the agreement for penalties that one can pursue legally,” said Anil Rego, chief executive officer and founder, Right Horizons.

If for some reason you are unable to service the loan, “one can request the loan issuing bank to allow her to delay the loan payments. But in this case, the interest will get added to the principal and the total loan amount will increase. Moreover, not all banks will provide that facility,” said Rego.

If the delay is due to the developer, form a home buyers’ association and approach the developer jointly. “The best option is to talk to the developer and try to get the issue resolved as soon as possible,” said Rego. Try to convince the developer to enhance the compensation for the delay and complete the construction soon. If the developer does not pay heed to buyers’ demands, you can look for a legal recourse.

Last year, in June, the National Consumer Disputes Redressal Commission (NCDRC) asked real estate company Unitech Ltd. to pay buyers compensation at the rate of 12% per annum for delay in delivery of apartments, overruling the builder-buyer agreement that had set the rate at 1.8% per annum. While these recourses will not benefit you immediately, you may be able to recover some of the loss.

Under current conditions, project delay is the biggest risk for a home buyer. “ Given the companies’ stretched balance sheets and cashflow problems, we expect execution delays to persist in the short term,” said Samir Jasuja, founder and chief executive officer, PropEquity. If possible, avoid buying an under-construction property. It may be better to pay a premium to buy a completed apartment than being in a situation like that of Prakash and Pandey.Also, do proper due diligence about the developer, track record of delivery, quality of projects and financial position, if possible, before buying a property.

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4 Home Loan rules most of the investors don’t know about


Can you claim tax deduction for your under-constructed house? Can you claim tax for the home loan taken from your friend and not from Bank ? These are some of the questions which are not generally discussed over and lot of investors have no idea about actual rules. In the video below I will talk about four not so known rules of home loans . Keep reading ! . Readers on email can watch the video on this article.

March 5th 2016 NCPBA -Buyer Registration


Welcome to Nitesh Caesars Palace Buyers Association NCPBA NOW Time to Register and Stand United to fight for our rights.200 buyers are supporting NCPBA  as a platform to collaborate and Stand United. Already 50+ buyers registered and more are coming forward for registration. Broad Objectives of NCPBA .

Venue: Nitesh Caesars Palace Kanakapura Road Bangalore 

Date: March 5 th ,2016  Time :10 am to 11 at NCP site.

Request all NCP buyers who have not registered with NCPBA to be @ NCP site by 10 am.

Required Mandatory documents for registration:

1. Two Passport photographs
2. Self Attested Address & ID proof..Aadhar Card
3. Driving License/Passport
4. Sale and construction Agreement xerox copy with NEL of each flat owner
5. Rs.1000 cash towards membership fee.

Note:Outstation Buyers registration drive will be later …when NCPBA is  ready for managing online payments and managing online documents.

NCPBA is made for the betterment of Flat Buyers. All members are on same platform. . There is no discrimination among the members. Every member is being treated as friend and as future Neighbour. NCPBA is here not just for our common goal i.e. our Home, but also for the sake of better relationship among the Neighbours. 

While unity lies in diversity and strength comes only in being united; so join hands and show your support by becoming your NCPBA Registered members.Buyers and flat owners must join the below online forums to stand united 

Join NCPBA and share your details one time only

fbClick here on facebook logo to join NCP Buyers closed facebook group

groupClick here on Google logo to join NCP Group

Solution to “Delay in Possession of Flat”


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Preventive Measures

1. Due Diligence:This is the first step that you should take even before you book the flat. You must conduct your own due diligence on the builder and the project. You should look at the track record of the builder and look at the average delivery time of his past projects. Then you should check whether the concerned project has received all approvals. See – documents to check before buying a flat.
When opting for a payment plan, always choose construction linked plan. In this way, you are creating an incentive for the builder to complete the project at the earliest. This will also ensure that you don’t block all your money upfront. You should always keep your options open.

2. Penalty Clause:Before handing over the booking amount cheque, you should ask for a copy of allotment letter and builder-buyer agreement. Check out the project delivery time and ensure that penalty clause is incorporated in the agreement. Generally, all reputed builders have a penalty clause in builder-buyer agreement stating Rs. 5-10 per square feet of penalty per month that the builder will pay from the promised project delivery date upto the actual handover date of the flat.

3. Form a Group

Once, you invest in a project, the next thing you would like to do is to get in touch with other buyers and investors of your project. A group has a much higher strength than an individual. In case of any delays,. These days, there are many online forums where you can meet your fellow buyers and investors.

Now Join Nitesh Caesars Palace Buyers Association(NCPBA)

4. Follow Up with Builder
Your job doesn’t get over with regular payments of your home installments. You should keep a track on construction activity. In case, you feel that the construction is getting delayed, you should meet with the builder as a group and understand the situation. A group can build more pressure and it is easier to fight for your cause as a group.

Legal Recourse

In case you feel that the builder is deliberately delaying the project, you may have to resort to take legal action. You can approach following forums for redressal:

1. Civil Court:If a builder commits breach of its obligations or is involved in unfair trade practices, you can approach a Civil Court for relief. For eg. some builders sell plots and flats even without owning the land, some use sub-standard construction material, some builders don’t apply for approvals deliberately causing delay in projects. Certain states have special provisions to handle delays by builders.  the builder is liable to refund the buyer’s money with interest if he is unable to justify delay in handing over possession of flats.

2. Consumer Forum:Consumer Protection Act, 1986, protects the rights of a consumer and provides remedies to a consumer against deficient services. A delay in handing over possession of flat is deficiency in rendering of promised service by the builder. You can file a case in the consumer dispute redressal commission at three levels – district, state and national level. District commission, established in each district, can handle cases where the value of the claim is less than Rs. 20 lakhs. The State commission of every state can handle cases where the value of claim is more than Rs. 20 lakhs but less than Rs. 1 Crore. The National commission has jurisdiction to handle claims of more than Rs. 1 Crore.

3. Competition Commission of India:The Competition Act, 2002 was enacted to prevent practices having adverse effect on competition, to prohibit use of dominance and to protect interests of consumers. A flat buyer can file a complaint against the unfair practices of the builder before the Competition Commission of India which has been empowered to investigate anti competitive practices and impose stringent penalties on the offenders. Penalties imposed by CCI against a builder act as deterrent to unfair trade practices in the real estate industry.

5. Criminal Court:Along with the consumer complaint in consumer forum, you can also file a criminal case against the builder under the provisions of Indian Penal Code, 1860 for breach of contract, cheating, not responding to grievance and delivery of poor quality construction. You can send a statutory notice to the builder. If the builder does not respond to the notice, file a police complaint and then file a criminal complaint before the Metropolitan Magistrate. You should mention all irregularities committed by the builder in your complaints.

Relief Options

It is better to take legal action as a group. If you file a case as a group, your legal costs will be shared and your case can be fast tracked.

Refunds can be claimed if the project is delayed beyond the stipulated time period as per the agreement. If the builder is in trouble and not in a position to deliver the project, the flat buyer can claim for the money required to purchase an alternative flat at the current market rate in the respective area.
If, however you are reasonably sure that the builder will hand over the possession of flat in a few months or years, you can claim the money you will be spending to pay rent during the delay period. Otherwise, you can claim interest on the payment made till date.

Conclusion

Today, builders are leaving no stones unturned in attracting the investors and end users into buying their properties. First, they will promise you moon and once they get all the money, they will stop responding to your queries. Most projects get delayed due to unfair practices by builders. There cannot be any justification against the delay caused by the builder once he has taken money and has promised to deliver the project in stipulated time.
As a consumer, we must know our rights and how to seek justice. First, you should take preventive measures to avoid delays in possession of flat. If however, preventive measures are not working out, you should not hesitate in taking legal action against the builder. After all, it is our hard earned money which is at stake.

Read more: http://assetyogi.com/flat-possession-delay/#ixzz404TgVYwI

Suggested Check List for the Handover -Nitesh Caesars Palace Buyers


Suggested Checklist from NCPBA… feel free to add and help the group

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  1. Decide whether you want to take handover before OC approval for your block or not and act accordingly.
  2. Make sure that the Maintenance Agreement corrections are in place before signing it.
  3. Calculate and deduct TDS for the full sale value from the final payment. Include delayed TDS payment penalty in the deduction, if applicable. Check with your CA
  4. During inspection, measure and record the actual Capet Area of the flat with a tape. Verify that the Carpet Area as a % of Super Built Up Area is within acceptable limits promised/agreed (usually Carpet Area should be >=75% of SBA)
  5. Service Tax and Vat Charges by Nitesh Estates Limited (NEL)
  6. Check everything thoroughly and record a jointly agreed and signed snags
    o Windows, Doors, Handles, Locks, Electrical Switches, Fan Regulators, Taps (working water), Flushes, Mosquito Nets, Cleaning, Water Seepage etc
    o Tiles – randomly check for any hollowness by knocking, any broken tiles?
    o Mosquito net – is it torn anywhere?
    o Lighting
    Lighting fixtures like holders are fixed
    § Check all lights & points (including geyser point) works correctly with DG power
    o Doors
    § Main door polish
    § Peek view glass fixing to the main door
    § Door stoppers
    o Kitchen slab quality
    o Hole cutting for kitchen fume exhaust pipe fixing
  7. Ask for necessary Certificates / Letters / Documents
    o Fire NOC copy
    o Completion Certificate of flat by BBMP / Architect / NEL
    o Completion Certificate of block by BBMP / Architect / NEL
    o Handing over certificate / declaration by NEL
    o Lift Safety NOC
    o OC Application for the block with latest status
    o Garbage collection plan in writing by NEL
    o STP working declaration by Nitesh Estates Limited
    o Make sure to get a soft copy of all engineering drawings / plans of your flat – Electrical, Plumbing etc. Will be needed for any subsequent repairs, later
    o No-encumbrance letter / certification / undertaking from NEL for your flat i.e. a letter guaranteeing that once registered, you will have full and final ownership on the flat irrespective of any other parallel commitments / liabilities of NEL with any other institutions or investors.
  8. Gas
    o Gas line plumbing till kitchen slab with meter
    o Gas line work ability
    o Gas bank
  9. Security allotment to block
    · Ensure that Car parking is allotted, numbered, accessible and well-lit
    · Collect and check all door / window keys
    · Make sure that you get a copy of ‘every’ document you sign during handover / registration

Do share your points if still some missing,lets together make a comprehensive list   350+Nitesh Caesars Palace Buyers.Comment and Email to NCPBA:ncpbassociation@gmail.com

Click here on Facebook logo to join NCPBAfb

 

 

Living in a flat without occupancy certificate? You may lose power


Repo-rateBGALURU: Rajini Chengappa, 58, and husband Vivek, 65, bought a flat in Kodigehalli, off Hebbal, in 2012. They moved into the sixth-floor flat a year later.

The builder, Vivek says, had promised them an occupancy certificate (OC), but it has remained a promise. The Chengappas are not alone in their plight. Thousands of homeowners are facing a similar quandary. Nearly 10,000 buildings in Bengaluru, including 50% of apartments built after the Karnataka government introduced transfer of development rights (TDR) in the city in 2005, do not have OCs, say official sources.

In many cases, though the building plans are approved, OCs are denied due to other violations. Obtaining an OC is a requirement under the Karnataka Apartment Ownership Act, 1972. The law says one cannot legally move into a building unless the developer gets an occupancy certificate from the BBMP or BDA. The corporation can ask apartment owners to leave such illegally occupied flats or impose heavy penalties.
Replying to a question at the recent Belagavi assembly session, chief minister Siddaramaiah had said only 97 highrises in Bengaluru have obtained OCs between 2009 and 2014, while promising stern action against builders violating construction norms.
Energy minister DK Shiva Kumar echoed similar views and directed officials to get tough with apartment builders, by disconnecting power.
But it’s not as easy as it seems, considering the quantum of violations, nexus between civic officials and builders and a lack of stringent laws. Many errant builders and developers have, over the years, gone scot-free, say those familiar with the working of the sector.
There are several examples of builders disappearing without giving OCs and legal water connections to housing complexes. Apprehensive of losing their homes, buyers who’ve invested hard-earned money move into their flats and make do with water from pumps and water tankers.

Read ahead-Click Here

How much a delay can cost you


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Form a buyers’ association: An individual’s plea can fall on deaf ears but forming a group could make the builder stand up and take notice. Form a joint front to put forward your demands. A collective effort would yield result in larger projects. Leverage the power of social media. An association of buyers can be started with two members. However, to add legitimacy, it is necessary to register your association. Consult a lawyer to help with the legalities. If you are lucky, t ..

The pain before possession


ncp121Real estate developers evoke little confidence among home-buyers and it is not without reason. While, this year, a large number of them have been focussing on offering delivery of their existing projects to customers, rather than launching new projects, home buyers are facing a new issue. Several developers offering possession letters have given residents an unpleasant surprise with several demands for charges that were not disclosed earlier.Developers are demanding additional charges under various heads. While some are asking for money in the name of labour welfare charge, others are demanding huge amounts in the name of authority meters. There are other charges that are being demanded by most developers such as a one-year advance for maintenance of society, etc. In some cases, developers are cutting corners by leaving some key interior works for the customers to complete — like keeping the fire safety pipe network inside the flat exposed.
An industry expert said that creativity to cut costs is at its peak as developers are stressed on various accounts. While developers have witnessed their project costs escalate because of delays in execution and completion, it has also resulted in a rise in their overhead expenses on account of inflation.

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What can a customer do?
Industry insiders feel that in the absence of a sectoral regulator, this is something that no one can control and home buyers need to be more aware and vigilant at the time of buying the house and look for the charges being disclosed by the developers. Singh said, “Homebuyers need to be more vigilant at the time of buying the house and they should ask the developer upfront to list all the charges and agree to pay only those charges. This is one way where homebuyers can safeguard their interest.” Experts say that since most of these charges are imposed at the time of possession, there is hardly anything that a customer can do about it. “A customer looking for possession of his flat that has already been delayed accepts to pay these charges,” said a real estate consultant with a leading property portal. Katiyar said that only a regulator can set the norms about the charges that developers can impose and a delay in entry of a regulator will only see a rise of such instances.
Rude awakening
* Rs 2,00,000: Approx. additional charges at the time of possession which are not disclosed upfront
* Most developers across Delhi-NCR have imposed an advance maintenance fee for the next one to two years and legal consulting fee amounting to around Rs 20,000
* There are also water charges amounting to around Rs 20,000 and PNG connection charges
* A developer on the Greater Noida Expressway is demanding authority meter charge amounting to Rs 70,000 from customers for 7 KVA power back up at the rate of Rs 10,000 per KVA — a rate which industry experts say is exorbitant –
See more at: http://indianexpress.com/article/business/business-others/undisclosed-charges-the-pain-before-possession/#sthash.6ryGdbyB.dpuf

Breach of promises: Home buyers take legal route against builder frauds, delays


Couple-Dreams-of-HouseHome buyers are becoming emboldened to take on the might of real estate developers as they see courts, state governments, as well as the centre with its proposed real estate regulatory Bill taking a strict view on cases of cheating, fraud and delays in delivery against builders.

“Home-buyers have realised that civil remedies are not good enough and criminal proceedings are turning out to be more effective. This seems to be the only way left to ensure that developers deliver on their promises. With this, developers would have to take up personal and not just professional responsibility hereon,”
Read more at: click here

NCP Buyers and flat owners must join the below forums to stand united 

Blog: https://ncpbassociation.wordpress.com

Facebook Group: https://www.facebook.com/groups/493665760779280/

Google Group:nitesh-caesars-palace-flat-owners@googlegroups.com 

Join the association and share your details one time only-Click Here