Sekar, a senior bank professional, met me recently
in connection with a real estate issue. He has sold a vacant land property in
the outskirts to a builder who as part consideration has given him an apartment
in another on going project of his. The value, he was told, is Rs.75 lacs. This
amount is to be offset from the total sale consideration. The apartment is good
in terms of location and construction, he is told. It will be ready soon and he
can occupy it in a matter of few months. Rest of the consideration for Sekar’s
property is to be paid based on some terms. The builder insists and gets the
flat registered in Sekar’s name. So far so good !
Soon Sekar has a change of mind ! He wants to live
in another part of the city which is close to his work place; so he goes to the
builder and tells him that he would rather hand over the apartment back to him
and let him give Sekar equivalent amount as payment so that he would buy an
apartment of his choice close to the work place. The builder informs him that
he cannot take back the apartment as he does not have the money to recompense
him. So if Sekar wants, he should sell it in the market and realize the money.
At this point of time Sekar came to the author of
the blog. After perusing the documents like approved plans, details of UDS of
land, actual working plans pertaining to the allotted apartment and based on a
knowledge of the price trends in the locality, the author came to the
conclusion that the builder has pulled a long one on Sekar by palming off an
apartment which is very poor in terms of layout, compliances, car parking space
and the like. Its real value if sold in the market (provided there are takers)
will be atleast 20-25% lesser than the price fixed by the builder . Also given
the extent of deviations from the approved plans, the ventilation, natural
lighting and car park space is seriously compromised which would make getting a
buyer very difficult for Sekar.
Things which appear so simple on paper , are, in
reality, not so simple after all !
So always take a hard look at the property and get
it investigated by a competent person before agreeing to sign on the dotted
line. Now Sekar is poorer by at least Rs.20 lacs on a notional basis and in
addition he is saddled with a property which will not give him a good quality
living that he has paid for!!
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Engineering Project Consultancy & Property
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