3 Compromises That Will Cost You A Lot Of Money
As prospective homebuyers we are always cautious about how we spend our money on real estate. However, there are some that may not mind paying a little extra for a convenience. Such practices usually aid in altering property prices, much to a common man's disadvantage. Developers may see this as a demand boom, you cannot blame him for charging you over the top.
However, at times, you need to call in some attention. Here are some violations you cannot let go easily:
Selling a parking space
Did you know that parking spaces cannot be sold at an extra cost? Although the Real Estate Law is silent on whether parking spaces can be sold or not, the general understanding is that it cannot because it needs to be proportionately allotted to the home owners. Moreover, the housing society must look into this and not the developer.
However, the ruling that parking spaces couldn't be sold had invited a lot of commotion. Developers did circumvent by charging it in black. Those who are still planning to purchase a parking space from a seller must know that it is illegal ab initio. At this juncture, it may be important to note that in its draft rules, Maharashtra did allow developers to sell parking spaces keeping in mind that almost Rs 2-15 lakh was being charged for it from home buyers without any official documentation or record of payment. This was done in order to check the flow of black money into real estate.
Also read: Parking Is Expensive But Not As Expensive As The Real Estate Space It Wastes
As per the gazette, the promoter or the developer must execute a registered conveyance deed of the apartment in favour of the allottee along with the undivided proportionate title in the common areas (includes parking area) to the association of allottees or competent authority within thirty days of receiving the occupancy certificate. Any other alteration in the sanctioned plan cannot take place without the written consent of two-third of the allottees.
Post the regulatory body in every state, go through the rules passed by your respective state housing body.
Soft possession letter
In the urge to save some money, both home buyers and developers may try to opt for the middle path. This could burn a hole in your pocket. For example, as per buyer-seller agreements, developers will need to pay a penalty if there is an unjustifiable delay in completion of the project. Naturally, paying a compensation to every allottee is tough on the developer's cash reserves and profit margin so he/she may try to give you a soft possession letter saying that while they seek the occupancy certificate from the competent authority, the home buyer can occupy the space beforehand. Do you know this could be a trap?
Most home buyers would see no harm in this. It may help them save some money they would otherwise be paying as rent. However, it is illegal to occupy the premises of your own flat if you do not have the occupancy certificate. This certificate is a mandatory and reliable way of ascertaining the project's legality and your claim to it.
Also read: Documents Required For Buying Property
Construction despite a stay order
Whether you are investing in a reputed developer's project or a small development, you have to be on your guard. Stay orders can come in if there is any violation noticed — be it environmental, due to the violation of local byelaws, disputed land cases, defective construction, at homebuyers' demand or when an activist notices a flaw. Note that such practices are not too common and therefore, when it happens, there may be some genuine issue you need to divert your attention to because this could be a trapdoor.
In the recent past, the Bombay High Court had put a stay order on the construction of a building close to the international airport due to height violation. Instances such as these mean that the developer was fraudulent and violated the norms in the area. He had procured an NOC after misrepresenting facts. Such projects either head towards a demolition or there could be a stay order. The order cannot be revoked unless the byelaws are honoured.
Sometimes stay orders can be given on houses set for renovation but not complying with the local laws.
Also read: Legal Remedies For Home Buyers Against Defaulting Developers
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