Here are our recommendations to the ABAD and other regulatory authorities. These are not final and are not limited to only following points. Other clauses related to concerned issues must be addressed and added from time to time.
“Developers, builders and agents use manifestly arbitrary, one-sided agreements that do not place buyers at an equal platform with them. There have been many cases of deliberate inordinate delays in handing over possession and customers do lodge complaints but the authorities do not register complaints and act upon, citing arbitrary clauses of the agreements”.
There should be a model builder-buyer agreement prepared by the ABAD and must be debated and consulted by neutral consumer attorneys, since there is no uniformity in the agreements of different builders. “It is very important for consumer protection, because builders try to put any number of clauses in the agreement, which common people may not be aware of.
The Builder has to submit a Pro-Forma of the Agreement for Sale along with all the specifications including amenities of the project while registering the Project with ABAD and with any other regulatory authorities.
All schedules of construction and completion of the property/ project has to be mentioned from the date of booking in the Builder/ Buyer Agreement and all the payment schedules have to be performance/ activities based in this Agreement except earnest money deposit which should not be asked more than 10% of the property's agreed price from the Buyer, at the time of signing the Builder-Buyer Agreement.
The Buyers must be allowed to inform the Builder and/ or to the regulatory authority about the defects of property within 5 years of possession. If a Builder fails to rectify defects within the stipulated time, the allottee has to be entitled to receive compensations.
Following regulations of SBCA must be entered into the Agreement and must be enforced by the authorities.
No escalation shall be granted to the developer who has failed to complete the project in time. (Clause 5-1.4) (As SBCA Building Town Planning Regulations)
In case of delay in handing over possession the Developer shall pay mark-up to the allottee at the rate of prevailing banks rate on the total amount paid, for the period of delay calculated from the completion time specified by the Authority. (Cl 5-1.21)
No Developer shall sell or transfer the whole project to any one for sale or transfer the units of the project to the general public, unless prior intimation to the Authority is given and No Objection from the 2/3rd majority of the allottees is obtained. (Clause 5-1.24) (According to SBCA Building Town Planning Regulations).
ABAD initially takes Rs. 164,000 with membership application and then Rs. 33,000 per year from 4th year. Let’s see if ABAD is serious for interests of general public or is interested in only its Members', Builders' and Developers' profits. Either ABAD will fix these issues of soaring subject related to general public or they will continue to invite and reward Police Chiefs, and will continue doing business as usual.
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