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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
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.
Where there is unity there is always victory.
Buyers and flat owners must join the below forums to stand united
Email:ncpbassociation@gmail.com
Blog: https://ncpbassociation.wordpress.com
Facebook Group: https://www.facebook.com/groups/493665760779280/
Google Group:nitesh-caesars-palace-flat-owners@googlegroups.com
Suggested Checklist from NCPBA… feel free to add and help the group
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
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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 ..
Nitesh Caesars Palace Sales Agreement :As per section 5.1, we all have agreed for maintenance by builder or maintenance company of builders choice, for a period of ‘5 years’ from the date of completion of the respective block:Now Nitesh Estate is trying to revise it to 10 Years. What you Say ?
Currently NEL is proposing 10 year maintenance by NPMPL with following provisions / clauses (some of which are seriously one sided as you all can judge for yourselves):
Let’s take a look at 5 such points you need to remember and the measures you can take against them.
Point 1: Actual price of the house
The agreement you enter into with the builder details the various costs that you will need to bear for buying the house. This would include the cost for utilities like electricity and water, parking space, various taxes and in some cases even the registration charges.
However, the builder may then levy some extra charges for any of these.
Measures to take
Check the agreement very carefully for all the charges applicable.If possible, get the agreement checked by a lawyer for any missing or hidden charges and get the anomalies (if any) rectified by the builder.
If the extra charges are for alterations made to the original plan, ask the builder for the sanction letter provided by government authorities for such alterations.
Point 2: Actual size of the house
The agreement would clearly mention the size of the house you are purchasing. However, there is a clause which states ‘.the plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications.Therefore, you may agree for a certain size, but the builder can give a different size.
Measures to take
Before freezing on your choice of a builder, do some research about the builder’s past projects.
If possible, talk with other buyers who already have got possession about problems faced by them
Try and include a clause in the agreement stating the minimum and maximum size beyond which the builder cannot increase or decrease.
Point 3: Carpet area
The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area in which literally a ‘carpet’ can be laid.When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called super built-up area.
The carpet area can be 15-30 per cent less than the super built-up area. However, you will not come to know the exact size until the flat’ss construction has been completed.
Measures to take
Purchase the property based on the carpet area of the flat.
Ensure that this area is mentioned in the agreement.
Try to get a clause included which will ensure that the contract can be terminated if the builder provides a house with the carpet area less than what is mentioned in the contract.
Point 4: Date of possession
The agreement normally mentions a tentative date of possession. However, there have been instances where builders have delayed possession by more than a year.
Measure to take
Check the progress of the construction personally.
If the progress is slow and would not meet the date of possession in a timely manner, build pressure on the builder.
Forming a society with other buyers sometimes helps a lot in getting things to speed up at the builders end.
Point 5: Completion certificate
On handing over the house to you, the builder needs to also give a Completion certificate. a completion certificate is issued by municipal authorities which establishes that the building complies with the approved plan.You would need this certificate for registration of your house and other government formalities.
Measures to take
If the agreement does not mention the certificate, ensure that the agreement has a clause which states that the builder will provide the certificate while handling over the house to you.
If the builder delays a lot, forming a society with other buyers sometimes helps a lot.
Other than these five points there more points such as the quality of the construction, management of the society, For this you can try to add clauses to the agreement or form a society to get the builder to meet your demands. Since there is no industry regulator you can turn to for the redressal of issues, it is important that you are aware of what you want and what you are getting.
Download : Buyers’ Agreement – Regal Gardens – DLF
Article Source:http://www.rediff.com/money/2009/jun/19perfin-read-this-before-signing-agreement-with-builder.htm
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