Saturday, February 4, 2017

Who needs RERA!

Should I book a flat which is not yet sanctioned by PMC?



I liked one project opposite Pu La Deshpande Udyan on Sinhagad Road. It has 5 high rise towers. I chose a flat on higher floors. This floor is not yet sanctioned. If I book that flat today - by paying 10% of the agreement value - I can get a substantial rate benefit - means I will get today's rate. The flat agreement will be signed & registered after the builder obtains PMC sanction - means approximately after a year or so. Ravi Karandeekar, my question is - should I book today or wait for PMC sanction? A lady asked.

Sorry. I didn't get you. What is the question? I asked.

I want to know - Is there any risk involved? Is this builder reliable? Since you know so many builders - I thought that I should ask you before booking. The lady said.

Thanks for asking! Are you married? I asked.

Yes! 20 years. I am a working mother of a college going daughter. The lady said.

Good! What will be your reply if your daughter asks you - "Mummy, a boy in my class is asking for sex - I refused - but he keeps on asking - can I have sex with him?". I asked.

No one will dare to ask. My daughter is not like that. I have raised her well. The lady said.

You are angry! Why? I asked.

My Sanskars! My daughter is well groomed. She is open & free. But not sultry. The lady said.

Sure. But what about you? I asked.

What about me? The lady asked.

Do people come to you with indecent proposals? Like - spend a night with me & I will give you a promotion! I asked.

Stop this nonsense. Talk about the builder. Not about my personal life. The lady said.

Did you ever ask yourself - How come this builder dared to ask me to book a flat which is not yet sanctioned by PMC? You know lady? Your builder's suggestion is as immoral as your daughter's classmate's invitation for sex. Your builder's proposal is as indecent as your boss's offer to spend a night with him for promotion. I said.

I don't think so. Pre booking - advance booking is a normal business practice. Of course, there is a risk. But there isn't anything wrong about it. The lady said.

Okay. Please, call Urban Development Minister, Venkaiah Naidu and request him to scrap Real Estate (Regulation and Development) Act, 2016. Tell him that there is no need to prevent the builders from accepting bookings before obtaining all necessary sanctions & approvals. Flat buyers need no protection. Flat buyers don't need RERA! I said.

Related Story:


1) 5 Objections Against Maharashtra RERA Rules

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I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market.

My email id is RaviKarandeekar@RaviKarandeekar.com Feel free to write to me. I reply as soon as i can.

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Of course, for a serious discussion, better fix an appointment at a time convenient to both of us. So that we can have uninterrupted & in depth discussion on my mobile (919860044110)
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For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

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9 comments:

  1. Dear Ravi, how stupid the buyers can be evident from this lady, I am still in the State Commission vs TATA Inora Park, Undri and my advise to a buyer is "even if GOD offers you a flat under PRE Booking, tell God to go to HELL...In real estate biz there are only DEVILS waiting for a fools & customers like her... that we all are...

    ReplyDelete
  2. Ek yeda dhoondne ke liye jao, dus milte.

    The project in question it seems is Cityscapes by crook Guardian developers on banks of Mutha sewage, right Ravi ?

    http://ravikarandeekarsblog.blogspot.in/2016/08/how-to-invest-in-guardian-developers-100-percent-interest-free-homes-in-pune-india.html

    Buying ready possession flat with all approvals is the way to go looking how buyers are being conned by crook builders but here we see yedas buying under-construction flat which is not even sanctioned. And these are the same people who will roam around later saying how they were fooled by builder.
    If a bakra voluntarily goes to slaughter-house, why blame owner of slaughter-house ? These super yedas should form a NGO - Being Ulloo !

    Since this blog was on mother-daughter, just remembered this news -
    Benami Act: Buying property in mother's name can land you in jail for 7 years -
    According to the Benami Transactions (Prohibition) Amendment Act 2016, which came into force on November 1, last year unless you are a joint holder in the property with your mother, father, or sibling you could go to jail for indulging in benami transactions.

    The Act is already being enforced by the IT Department. A senior finance minister official told DNA on Monday that it had issued 87 notices and attached bank deposits worth crores in 42 cases nationwide under the amended Benami Transactions Act 2016.

    http://www.dnaindia.com/money/report-buying-property-for-mom-can-land-you-in-jail-2301870

    And see how builders are going bankrupt & offering 50% discount.

    Home-buyers are waiting for rate cuts before firming up their purchase plans -

    In October 2016, a Mumbai builder who runs a business worth roughly Rs 500 crore was compelled to sell 1 lakh square feet of an upcoming residential project in the western suburb of Kandivali at Rs 6,500 per sq ft when the going rate was around double that.

    These are Pune figures of flats -

    Launches in 2012 - about 56000 units, in 2016 it is down to just 20000 units, a 64% fall, while sales too have fallen by 34% in same period.
    Full details here -

    http://realty.economictimes.indiatimes.com/news/residential/demonetisation-impact-home-buyers-are-waiting-for-rate-cuts-before-firming-up-their-purchase-plans/56657100

    http://economictimes.indiatimes.com/wealth/real-estate/demonetisation-impact-home-buyers-are-waiting-for-rate-cuts-before-firming-up-their-purchase-plans/articleshow/56653519.cms

    ReplyDelete
    Replies
    1. I am surprised to read your comments. One of my friends is searching for flat in Mumbai around kandivali, dahisar. Having gone through posting on 99acres, mb, one can figure out asking rates are between 13-18k. I don't think there is any sort of price correction or so. What is your opinion regarding this?

      Delete
    2. Broker websites will only show you rosy pictures even for projects which are delayed or abandoned ! Major fall is being witnessed across India, only the thing is it's not made public. Show seriousness alongwith a cheque book & see the calls which you get. I have already posted some Pune examples in Ravi's earlier blogs of projects around NIBM which are offering atleast 35% discount. And as far as this Mumbai issue is concerned, I have put the link above from economic times, so be assured that this is not imaginary.
      Problem with hoarders, builders, agents is they only think 1-2 ka 4 but don't understand that artificially inflated prices can make the product go out of the market one day.

      Coming back to this blog of yedi buying without sanctions, one more such news -

      Authorities begin drive to seal 382 Supertech flats built ‘illegally' -

      The crackdown on the alleged illegally built properties in the NCR region continued on Monday as the Greater Noida Industrial Development Authority had begun to seal as many 382 flats and villas at Supertech Czar Suites in Greater Noida.

      http://www.indiatvnews.com/news/india-noida-authorities-begin-drive-to-seal-382-supertech-flats-built-illegally-368019

      Delete
  3. Ravi sir message is very clear and indeed very right. No one should even think to book for flat which are not having PMC approvals and necessary permissions or paper work not done. Here he is trying to educate us that what is immoral in real estate and why immoral has become business practice is bcoz it’s shown as attractive beneficial business ways. We are not having enough knowledge and people who correct us we don’t like and take it on our personal egos. Please go for flat booking when you have checked below documents-
    1.Sale Deed/Title deed /Mother deed/Conveyance Deed
    2.RTC Extracts
    3.Katha Certificate and Extracts
    4.Mutation Register Extracts
    5.Joint Development Agreement
    6.General Power of Attorney
    7.Building plan sanctioned by the Statutory Authority
    8.NOC from Electricity Deptt/Pollution Control Board/Water Works/ Air Port Authority
    9.Supplementary agreement / Ratification Deed (if any)
    10.Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
    11.Sale Agreement between Builder and 1st Owner
    12.Construction Agreement between Builder & 1st Owner
    13.Latest Tax Paid Receipt till Date of Registration (Property Tax/Municipal Tax etc)
    14.Encumbrance Certificate up to date for latest 13 years or from the date of registration till date
    15.Demand Letter from the vendor before disbursement
    16.Approved plan of construction/extension & license for construction.
    17.Detailed cost estimate/valuation report from Chartered Engineer/Architect (if applicable)
    18.Conversion order/Betterment Charges paid receipt.
    19.Sanctioned Layout Approval plan
    20.Release deed (If applicable)
    21.Loan/Charge/Mortgage by the Builder
    After checking these docs take service of lawyer and once everything is verified then only book flat. Last but not least let’s be honest and thankful to people like Ravindra Karandeekar who are helping us to educate ourselves and bring general awareness of wrong practice in real estate. Since 2014 I am in touch with him and never ever I saw him giving wrong advice. He is very much approachable and very knowledgeable.

    ReplyDelete
  4. I always like the way you are explaining ...
    Thankx ravi

    ReplyDelete
  5. Builder uses borewell, society calls for tankers -

    Residents of Amit Colori, a society in Undri, have approached the sarpanch Shweta Ghule requesting action against extraction of groundwater for construction in the vicinity of their residential complex.

    Amit Colori, a complex of six residential buildings, is home to over 170 families living here since 2012. According to the residents, more than 10 water tankers are being called every day, leading to monthly water bills of almost Rs 3 lakh.

    http://timesofindia.indiatimes.com/city/pune/builder-uses-borewell-society-calls-for-tankers/articleshow/56989656.cms

    This is one more case how Amit enterprises fools it's buyers. Even worse is case with Amit Sereno, now 24k Sereno by Kolte patil where the project is not even 20% complete even after 4.5 years !

    The above news should help buyers understand the importance of infrastructure required for leading a human life before buying a flat.

    ReplyDelete
  6. 3 lakhs/ 170 = Rs.1764 only, per flat per month. No big deal when you are already paying EMI of 30,000

    ReplyDelete