5 Broken Promises in the Real Estate Sector
Indian real estate industry is growing and so are the scams associated with it. Some of the big false promises made by developers to buyers are highlighted here.
In the construction industry, we hear false promises several times and get carried away by these. The broken promises of realtors leave us with a bad taste in the mouth. We need to remain alerted and knowledgeable, so that we may not get lured by wrong promises. Indian real estate industry is growing and so are the scams associated with it. Let’s find out the major false promises made by the developer to the buyer?
1. Builders say don’t worry about your capital; it is in the safe hands. You can get the repayments anytime you wish –
Generally, it is very difficult to get your money back from the property developer -whatever are the reasons for booking cancellation. In many times, it has been seen; the property developer also warns the buyer with dire consequences, even a court case also if he fails to pay the outstanding balance to him.
While making out any payment to the builder, it is necessary to make use of cheques. These serve as a proof of payment. Also, keep a photocopy of the home loan documents with you.
2. Is your builder saying “We will change the agreement later”?
In case, if you are not comfortable with any property clause, get it changed with an immediate effect. Don’t rely on brokers because they hardly remain for months with you. Several times, builders deviate from their approved plans. These can be in the form of spaces, amenities, luxuries, parking area etc. Any necessary amendment should be written on the letterhead and approved by signatory authority. This should be followed in the case with home loan agreement also.
3. Title Frauds – Several innocent buyers are today victims of title frauds, across the country. Brokers duplicate the title deeds and sell these to buyers. It is always wise to do a thorough check before making out an investment on real estate. Verify whether the legal title of the property is in builder’s name or not. The legal title proof the builder’s ownership in the property.
4. Have you been committed that the realty project would be finished much earlier as what has been mentioned in the agreement?
We all know that there are huge piles of unsold inventories today. If we talk about Delhi/NCR, around 250,000 unsold inventories are available as per a report published by Knight Frank India. And most of the builders have been assuring their customers for months about the completion of the projects.
5. When the builder says, “We are offering the flat at the lowest price”.
The builder will never speak about the price correction in the market. In Delhi/NCR, over the last 1 year, the sales of inventories have rallied up more than 50% but the price has gone up just 4%. Hardly any builder will tell there needs to be a price correction in the market.
Looking for buying a property? Ensure to read these 11 tips