Beware of builder tricks - How to Avoid Getting Scammed

Beware of builder tricks - How to Avoid Getting Scammed by Builders - Part 2
This is the second part of the article about the tricks that developers play and how consumers can protect themselves against them. In the first part we covered the measures the consumers can take if there are problems with respect to possession of property, propert documents, or quality of construction. This article covers the remaining four problems.
Actual price
When you receive the letter of offer it will mention the total price you will pay with a break-up of the various costs. It will include the cost you have to bear for electricity, water supply, car parking, taxes to be paid and even the approximate registration charges. However, the reality may turn out to be different and the builder may ask you extra money for any of these. For example, the builder may include the registration charges in the total cost estimation, but may later say that it’s to be borne separately. Sometimes the builders may change the specifications of the construction and ask you for an extra amount.
Measures: 1. Carefully examining the offer made by the builder before signing the agreement. 2. It is helpful to discuss the cost break-up with a lawyer to find out if anything is missing or hidden. 3. Keep checking with the builder if any changes are being made to the specifications mentioned in the agreement and the allotment letter. 4. Try to get it mentioned in the contract that if a sum higher than the original price has to be paid by you, the builder would give you additional time for that. 5. You must also ask for a copy of the sanctions that the builder has taken from the authorities to carry out the alterations.
Size of the house
While buying the house the square feet area will be clearly mentioned. However the purchase agreement will have the clause - the plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications...". In effect, you will never know the exact size of your flat till the house is constructed. This may lead to a difference in your requirements and even the cost of the flat. Measures: 1. Do a check on the past projects by the builder to see their track record of such malpractices 2. Read reviews about these builders on websites to learn from the mistakes and experiences of other people.
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 that is actually used and in which 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. In India, flats are sold both on the basis of super built-up area and carpet area. The carpet area can be 15-35 per cent less than the super built-up area. However, you cannot know the exact carpet area, till the flat is constructed. Measures: 1. Buy property on the basis of carpet area. 2. There should be a provision for termination of the contract and resumption of the property so that builders don`t have an upper hand
Management of property
For a newly constructed building, the builder will promise to manage the building for the initial one or two years. However the quality of maintenance may not be up to the mark. Even the cost for maintenance is a problem. The builders may decide on certain maintenance charges, say Re. 1 per sq. ft but may hike it later. The agreement shields the builder. It says, "the monthly maintenance charges will be subject to revision from time to time". Measures: 1. The best way is to form a society and start maintaining the building yourself. 2. Build pressure on builders in such a way that may affect the builders reputation in public, for example, posting reviews on review websites. 3. You can use websites like www.consumerhelpline.in and www.cgsiindia.org to seek further guidance. To conclude, the situation will not improve till the consumers become more aware and fight back instead of simply bending their feet. At the same time, the government needs to act fast and bring a regulator to ensure protection for buyers.


Author: Editor

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