Hi All
In present real estate scenario, buyers must be more cautious to check the financial balance sheet of the developers before investing their hard earned money in their project to safeguard themselves. Else all their hard earned money will be lost. Here is another such loop hole, for which yesterday Supreme court has given a stay for one of the case against Jaypee Infratech's insolvency proceedings, only because those investors have reached supreme court right in time. please read the below link for the details.
http://economictimes.indiatimes.com/wea ... 359308.cms
Using Insolvency proceedings, big developers who failed to complete their much hyped projects can get away easily by declaring themselves Bankrupts. In such cases, the secured loan given Banks will get their money back by disposing off these incomplete Projects and the actual Buyers/end users considered as unsecured Creditors, will get nothing under the present law.
Big risk for Buyers from Big Builders
Re: Big risk for Buyers from Big Builders
SC Lifts Stay on Jaypee Infratech Insolvency Process
http://epaperbeta.timesofindia.com/Arti ... 2017005011
http://epaperbeta.timesofindia.com/Arti ... 2017005011
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ardesarchitects
- Posts: 1076
- Joined: June 20th, 2009, 2:12 pm
Re: Big risk for Buyers from Big Builders
Hi,
In all the cases the end buyer will be always the sufferer. Banks that are giving loans to individuals never follow the rule of releasing payments based on work progress , rather they just release loan when ever the builder raises the request .
Further the buyer should insist to write in the loan agreement that loan will be released on buyers sign and approval.
Few points that every buyer should insist to write in the agreement from builder side
1. Detail Payment schedule in line to work progress not time lines . For example
First payment - after finishing your tower footings - not other tower
Second payment - After raising columns to your floor - not the other floor
Third payment - After finishing the walls of your specific flat - not in common areas
like wise you should have very detailed bench marks . The same documents should be attached in bank loan document and the concerned person should sign on it.
Though its not easy that any bank official will be ready to sign but there should be some way to fix this.
Regards
Ar.Praveen.N
Ardes Architects and Interior Designers
ardesarchitects@gmail.com
www.ardesarchitects.com
https://www.facebook.com/ardes.architects
In all the cases the end buyer will be always the sufferer. Banks that are giving loans to individuals never follow the rule of releasing payments based on work progress , rather they just release loan when ever the builder raises the request .
Further the buyer should insist to write in the loan agreement that loan will be released on buyers sign and approval.
Few points that every buyer should insist to write in the agreement from builder side
1. Detail Payment schedule in line to work progress not time lines . For example
First payment - after finishing your tower footings - not other tower
Second payment - After raising columns to your floor - not the other floor
Third payment - After finishing the walls of your specific flat - not in common areas
like wise you should have very detailed bench marks . The same documents should be attached in bank loan document and the concerned person should sign on it.
Though its not easy that any bank official will be ready to sign but there should be some way to fix this.
Regards
Ar.Praveen.N
Ardes Architects and Interior Designers
ardesarchitects@gmail.com
www.ardesarchitects.com
https://www.facebook.com/ardes.architects