Deliverables

Why not go for an under-construction property?

a) Risk of the builder violating the building Bye-Laws

b) Builder might construct illegal floors (penthouses etc.) because of which BBMP will not give OC

c) BBMP has the authority to sanction/clear violations only up to 5%, that too has some restrictions Beyond this you have to depend only on Akrama – Sakrama.

d) 90% of the payment is collected just before the Sale Deed registration, and other terms and conditions like completion of amenities, car parking, etc.

e) Most of the builders won’t have provision for STP (Sewage Treatment Plant), which is mandatory as KSPCB. STPs were made mandatory in 2010 for all the new apartments with more than 20,000 sq. ft built-up area, having more than 50 flats.

f) Quality of the construction may not be as good as promised before the purchase, but you can’t do anything as you would already have paid for it.

g) Lead time for delivery maybe 18-24 months. Many things happen and change during this time frame.

h) You may have to shell out an additional Rs. 6 lacks o Rs. 8 lacks to the bank as pre-EMI interest

i) Agreements generally are one-sided and favor the builders.

j) Also penalty for delay from the builder is peanuts. It is around Rs. 5/Sq.ft/month. Say you are buying a 1000 sqft flat and the penalty works out to be Rs. 5000/- month. Whereas you will be paying close to Rs. 50,000/- month as pre-emi interest alone!

k) Getting any penalty paid to you from builders is cumbersome.

l) Since you would have paid 90% of the cost within a few months of the sale agreement and need to wait for 12-18 months before you get possession of your flat, you will be at the mercy of the builder to get your flat completed and will not be able to raise any issues or objections with the builder.

m) In all clauses for cancellation due to any reason, a refund will be around 80% of the paid money and will be after 3/6 months time frame.

n) No clear info on the carpet area. All flats are sold based on the super-built-up area which includes all common areas.

o) Sometimes you might get less carpet area than what is committed.

p) Some of the builders may not have NOC from KSPCB, BESCOM, BWSSB, BDA, BBMP, etc.

q) Most of the time undivided share of land (which belongs to you) of the flat owners won’t tally with the total land on which the apartment is being built.

r) First-time builders who want to make more money, end-up up messing up the whole project, and finally flat purchases will be affected.