Tuesday, March 18, 2014

Indian Builders flout rules | Mt Kisco Real Estate

Without any construction permissions in place and sometimes even when land titles are not clear, builders in the city have been enticing clients to book flats early at discounted rates although it is illegal under the law.

In fact, by luring investors to book flats by paying just 10 per cent to 20 per cent before the first brick is laid, developers manage to sell 200 to 300 flats even before the project is publicly announced in some cases.

Property experts say this is now a common practice in the real estate industry. In a big Thane project, the builder sold 500 apartments although the title of the land is still not clear and no sanctions have been procured.

Laws are stringent about what are called pre-sales and soft launches of flats. The Maharashtra Ownership of Flats Act says no flat can be sold unless building plans are submitted to the civic body and are approved. "It is illegal to sell apartments this way," advocate Vinod Sampat said.


http://economictimes.indiatimes.com/markets/real-estate/news/builders-flout-rules-sell-flats-in-projects-sans-clearances/articleshow/32233815.cms

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