Sunday, October 25, 2015

Builder can’t sell common areas and amenities - Bombay High Court

Entire Land and Building Must be Conveyed to Housing Society:

Entire Land and Building Must be Conveyed to Housing Society

The Bombay High Court (HC) recently clarified that the Promoter/Developer has no right to sell any portion of the building which is not a flat and the entire land and the building has to be conveyed to the society.

The only right which remains with the promoter is to sell unsold flats.

HC further observed that selling of common amenities like the basements, cellars, yards, gardens, parking areas and storage spaces is contrary to the development agreement and the provisions of development control regulations.

Read more on Vijay Kumbhar's Exclusive News & Analysis

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  1. This is indeed a very good verdict for the buyers. Without land, flat owner essentially pays only for couple of truckload of steel and concrete. The builders take money from flat buyers which includes the cost of land, but don't do conveyance deed. This means they deliver only partial product to buyer despite taking full amount.

    Hope this verdict helps buyers in getting their rightful ownership of land with ease and builders not doing so are brought to justice. Would like to know what is the reaction of honest and truthful builder organizations like CREDAI, MCHI, MBVA etc. on this verdict.

    It is only due to such selfish policies of builders and very high prices that sales are not happening in real estate and financial problems have become very grave for builders. The latest report from ASSOCHAM says the same thing :

    75% real estate projects remained non-starter as of FY 2014-15: ASSOCHAM
    Pvt. sector accounts for 95% realty projects facing delays

    1. Would like to know what is the reaction of honest and truthful builder organizations like CREDAI, MCHI, MBVA etc. on this verdict. - Guess!

  2. Areas like Wakad, Pimple Saudagar which were villages once upon a time - are now boasting rates around 6500 per sq ft. These are not worth by the look of locality. and rates are out of reach for only one reason - closer to IT. I am interested in investing in Chinchwad area. Do you think Pimpri-Chinchwad could lead to the same rate in near future given its proximity to Hinjewadi, Pune-Mumbai highway and tathavde IT park near Nigadi? ANd more importantly chinchwad has still kept its original locality (less crime compared to kalewadi, pimpri, wakad)!
    Comments from all folks are welcome!!!

    1. Question is - Can chinchwad area will have properties (flats) with rates increased in 6500 Rs/sq ft in near future?

    2. Chinchwad area means what? Why only 6500? Why not 12000?

      Property rates are just digits!

      1) Craig, real estate runs on digital money.

      In fact, the current economy is digital economy.

      Digital money created by the banks.

      2) 'Ownership Rights' are shrinking. Focus is on increasing Consumption & creating Consumers.

      Means, less & less people are going to own anything.

      And more & more number of people will be used to create debt.

      Because debt is essential to create digital money.

      Digital money gives power to the banks.

      To increase the power & dominance, for the banks, increasing number of digits in every transaction is the easiest way.

      Otherwise, tell me why rates went on increasing without any significant reason (like development!) in the last 10 years?

    3. Point is, home buying decision should not be based on the number of digits. Or on the emotions & desires. It should be based on the quality of life the particular home offers.

    4. I understand what you mean Ravi. But going by what you said - there are hardly such projects which has quality rating and if any project has it all - then for sure they are way out of reach in terms of money. Hard truth is - everybody here to make profits. So me- as an investor have to think on same lines to make profits. Home prices are like stocks - but difference is there is more probability property worth hikes. I am just trying to identify which is the next area in line for property growth ( growth meaning literally monetary growth).

    5. The house prices will increase / decrease does not matter, just look for a comfortable price and take a plunge. Wait n Wait is also not the best option. PS comfortable price is how many years you are ready to slog vs the emotional satisfaction you will get.