What remedies are available in case the builder delays the construction of the building?

A builder can neither unilaterally extend the date of possession nor insist on allotting alternate flat or plot to escape refunding the amount.As in any legal matter, you should posses evidence to prove your stand or allegation. Get all papers and documents ready—advertisement brochure, booking receipts with payment details, any letter sent by the developer, signed agreement, all payment details, emails exchanged, photographs collected, and others. Avoid verbal communication.Buyers should always send a legal notice before approaching any forum or court with their grievance. They should have taken objection with the builder against violations or illegal demands by sending a letter so that evidence can be created in their favour to be produced at the time of proceedings

1. You can ask for a refund from the Builder. If the builder delays the completion of the construction beyond the stipulated time, property buyer to seek a refund and compensation from the builder.Demand compensation from builders for construction delays

2.You can file a case in the consumer dispute redressal commission .  

Any dispute over 20 lakhs can be directly filed before the State Commission and 

Any dispute over 1 crore can be filed before the National Commission in New Delhi. 

Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District.

3. There are special provisions in some states for the benefit of consumers. 

For example, if you are in Maharashtra, you can get remedy through Section 8 of the Maharashtra Ownership Flat Act 1963, which makes the builder liable to refund the money obtained from a consumer with interest if he is unable to justify non-completion or delaying possession of his project. This section clearly works to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time.

4. There are some additional provisions which you should be aware of. 

For example, the Domestic Building Contracts Act 1995 states that the builder has given the following warranties

(a) That all the work would be completed on time 

(b) That  all work will be carried out in accordance with the plans and specifications set out in the contract (c) That all material to be supplied by the builder will be of a high quality 

(d) That the work will be done in a legal manner with reasonable care and skill, and

5. Wait till the completion work. when the work is completed, the home will be fit for occupation. As per this law, you are entitled to take action for delays. e. Please remember that before you take any action, it is always advisable to send a legal notice to the opposite side giving them a chance to respond. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court.

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 flats in kerala for sale

flats in kerala for sale, villas in kerala, flats in kerala to buy, real estate kerala,

 flats in kerala for sale, villas in kerala, flats in kerala to buy, real estate kerala, 

Things to ask to Builder before buying property

Ask the Builder,

1. To show for sample flat and building plan, this will give you the look and feel of flat and the amenities and quality of tiles and other items used in kitchen and bathroom etc. Also ask and see the floor plan that gives the idea about surrounding and spacing.
2. If any additional charges above the charges they show to you like any legal fees, parking fees etc which sometimes is not said in first meetings.
3. When the project getting completed and which month is the handover of property? How will they Charge till then because this will attract PRE-EMI (A kind of interest charged for part payment of the loan borrowed from bank) this is an extra charge and not same as EMI. Get dates in written and terms if builder not able to give on time.
4. About the Carpet area and Total super built up area and what will be written in Agreement. Also check the height and directions of the flat.
5. What type of utilities and facilities are in built provided upon sale like Fans, Furniture in kitchen, Home UPS/Inverter etc.
6. Regarding the copy of title deed of the property on which flats are built. Also Documents relevant to the Land / Project / Building / Apartment
7. Check if that property can get Loan from banks, if not why ?

Things to Know before buying an apartment /Flat in Kerala - Guidelines

 Buying an apartment and flat is not easy always .In this fast growing real estate world it is difficult to find out a good project and Apartment suitable for you. Increased level of earnings has beckoned people to concentrate more on their convenience aspects. A flat offers many more facilities than a traditional house. It offers more security, more amenities /facilities such as Swimming pool, health club, shops and restaurants, clubhouses, proper maintenance, uninterrupted supply of water, stand-by electricity system, in-house gym and recreational facilities and resident association memberships, which comes in handy in life’s difficult situations. But even with all such positives, there are certain things that one needs to take care of while buying a flat. For avoiding all confusions you must follow some guide line before buying an apartment.

1.   Builder

2.   Project

3.   Unit

4.   Locality

5.   Price

6.   Purpose of Buying

Learn to Recognize a Good Deal - which are the “good deals”?

Builders Credibility

Make sure that the builder is credible and do a little research on the other projects of the builder, which has delivered recently. Check the following things for finding about the builder’s credibility.

1. Builder experience - number of projects / types of projects / number of years.
2. Builder reputation - builder quality / adherences to industry standards / adherence to rules and regulations.
3. Builder transparency in dealings - financial, non financial, technical, promotions.
4. Builder responsiveness - how fast, how well.
5. Builder staff quality with whom you interact.
6. Builder tie-up with financial institutions and other bodies of interest.
7. Builder review/feedback you have come across.
8. Builder background - experience and business background of main promoters.
9. What kind of after sale support. How long? Any charges? Any special help for NRIs? Any help in reselling or in finding tenants?

Project

A detail study of the Projects is good for less the stress in future.Verify the construction work has begun on schedule and the progress is satisfactory.In addition, check the status of other projects from the same builder.  Check the following things also 

1. Building Specifications Materials
2. Foundation Type
3. Structure Type
4. Standard Compliance
5. Structural Engineer / Team
6. Architect / Group
7. Construction Contractors if any
8. Number of Blocks / Number of Floors / Number of units per floor.
9. Plan and lay out
10. What is on north, east, west and south of this project right now? Is there anything that may diminish the value of this project?
11. Is there anything going to come up in the vicinity of this project in the near future that may diminish the value of this project?
12. Facilities - Open space / play area, Temporary parking for guest, Toilet/ bathroom facilities for driver/ watchman etc, cable connection, Standby inverter separately for each flat, Roofing in terrace, 24 hours watch and ward provision, etc. etc.
13. Water - type, nature. What is available in each unit.
14. Electricity - type, nature. Back up generator? What is supported on back up
15. Number of lifts. Back up supply?
16. Cooking Fuel - type, nature, distribution
17. Fire Safety - type, nature
18. Earthquake Safety - type, nature
19. Sewage treatment plant.
20. Owners association? Monthly charges?

Unit

The detail study of building units gets more idea about your building; from its specifications we can evaluate the building and can finding out is it worth for spending money., you have to check approved plan of the building along with the number of floors. Make sure that the floor of the flat/apartment that you plan to buy is been approved. Check the following things

1. Floor plan. Number of bed rooms and bath rooms. Total area. Other rooms
2. Wall material
3. Inside wall finish ( e.g. putty with plastic emulsion )
4. Outside wall (e.g - weather coat )
5. Main door material, type, finish and strength.
6. Inside door and window material
7. Floorings - material, color and finish - what options available
8. Ceiling. Type, finish options.
9. Bedrooms - number and sizes. Attached?
10. Kitchen. Top and sink
11. Work area?
12. Living room features?
13. Drawing room features?
14. Dining room features?
15. What is going to be the view from all the windows?
16. Servant room and servant entrance?
17. Centralized gas supply system?
18. Bathroom floor material
19. Bathroom wall material and up to what height
20. Bathroom counter tops
21. Bathroom accessories / sanitary fixtures and fittings.
22. Type of AC provisions. Window/split/central
23. Electrical : Number of phases, points, back up
24. Phone. TV, Internet, Intercom provisions.
25. Common Sewage treatment provision.
26. Cross ventilation
27. Intercom to security?
28. Provisions for storage?
29. Are you aware of the new trends in flooring /sanitary / kitchen modules /furniture / wardrobes. What you want and what is possible in this unit?

Locality

Through the study of the locality of the apartment, we can evaluate the land value of the building and its future selling price.Check whether the builder is the owner of the land or if he has made an agreement with the land owner for the same.

 Find out the following important things.

1. Access to main road / and other common facilities
2. Distance from places like airport, hospital , rail station , bus station, super markets , schools , colleges , place of worship, police station, fire station
3. Locality statistics - like people education levels, income levels
4. Residential / commercial / industrial / other
5. Water availability and nature of water.
6. Locality statistics - like crime rate, mosquito index. It is nice to have a water front apartment.
7. Future plans for this locality by civic bodies and government that may affect the prospects of the locality one way or other
8. Locality weather sensitivity - how is it in monsoon? Water logging, flooding in the area, flooding of the approach roads to this locality.
9. Greenery?

Price

Determining the value of an apartment building investment is one of the greatest difficulties that many new commercial real estate investors face.Check with the specifications given in the brochure to the agreement for sale.Check the applicable building bye laws in that area and make sure the builder is not violating those laws. 

1. Rate per square feet
2. Price
3. What is included in price / rate?
4. What is definitely not included in price /rate?
5. What are the extras and how much a buyer has to spend?
6. Statutory charges such as Stamp Duty, Registration Fee, Electricity connection fee, Water connection fee, Sales Tax, Building tax , service tax. Any other expected expenditure.
7. What are the recurring monthly charges like association fee/ security/common fund etc
8. Payment schedule:
9. Tie up with housing loan institutions

Purpose of Buying

The investing idea flies from money and mindset. The purpose of buying or investing is  one of the important aspect.

1. For living / for renting / investment / for resale / just to have another place.
2. For living - How well it meets your and families current and future plans/criteria for living
3. For renting - current and future rent expected. How is the rent going to change in future. Will there be enough demand in future. What are the rent rules in the area? How easy it to get a new tenant. Formalities involved. What kind of service can be expected from builder? Are there complete service providers to manage rental. Flat association rules. Income tax impact.
4. For resale - Ease of selling, expected rate of appreciation in short and long term. Formalities. Rules that affect flat reselling.
5. As an alternate place to live.
6. I live abroad. Just want my own place when i visit / when I return.
7. As long term asset for my children. How does this investment compare with other forms of long-term investment?
8. As a gift.
9. Just to make use of the loan I'm entitled to.

Model Bye law of Apartment / Flat owners Association

The Society application should contain

1. Application for registration addressing to Registrar of Society signed by President, Secretary, Treasurer
2. Memorandum of association of the Society
3. Rules of the Society
4. Name and Address ,occupation details of the members of the governing committee / managing body.

 Memorandum of association

The memorandum of association shall contain the following things

v     the Name of the society

v     the Registered office address of the society

v     the Aims and Objects of the society

v     the objects of the society:

v     the names, addresses, and occupations of the President, Secretary, Treasurer, Governing  council members , committee or other governing body to whom, by the rules of the society, the management of its affairs is entrusted.

Rules of association

The Rules of association shall contain the following things 

v     Name of the society

v     Office address of the society

v     Membership defined -Admission and qualification for membership, Subscription ,Rights and privileges of the Membership

v     General Body defined –Powers and duties /functions of general body,quorum and notice of meetings

v     Managing / Governing Body /Executive committee defined- Election and its mode, terms of the office governing body, Powers, duties, functions of the managing committee and office bearers. Sub committee formations, duties etc..

v      Source of income

v     Financial Year

v     Audit of Accounts

v     Operation of Bank accounts

v     Legal Proceedings

v     Dissolution and adjustment of affairs

v     Application of act

 A copy of the rules and regulations of the society, certified to be a correct copy by not less than three of the members of the governing body, shall be filed with the memorandum of association.

More details Download from  : http://egroops.kerala.gov.in/socities.pdf

What is society means? Details and registration Procedure all over Kerala

It is an association of persons united together by mutual consent to act for some common purpose THE SOCIETIES REGISTRATION ACT, 1860.Sec.20 deals the term Society in this act. Society can form by 7 or more persons, eligible to enter in to a contract

In the state of Kerala, two Acts are applicable:

1.     Malabar Region: Societies Registration Act, 1860 as amended by the Madras Act No. 24 of 1954.

2.     Rest of the state: The Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955.

Malabar Region - [Societies Registration Act, 1860 as amended by Madras Act No. 24 of 1954]

Malabar Region includes six districts of present Kerala state. These are Kasaragod, Kannur, Wayanad, Kozhikode, Malappuram, and Palakkad.

Registration

By filing Memorandum of Association and certified copy of Rules and Regulations (Sec. 3). All documents to be filed with the Inspector General of Registration.

Alteration

You are allowed to alter the objects of the society, change its name or merge with another society. For this, you have to convene two general body meetings and three-fifths of the members have to approve the change (Sec. 12).

List of Governing Body Members

To be filed every year within fourteen days of annual general meeting. This should be filed in January, if general meetings are not held (Sec. 4).

Accounts

No specific provisions.

Dissolution

Three-fifths of the members or more may decide in a general meeting to dissolve the society (Sec. 13). The Government's consent is required for dissolving the society, if it is a member or a contributor or interested in the society. However, the government can neither dissolve a society on its own, nor can it take over the society.

Disposal of property upon dissolution

A society's property cannot be distributed among its members. However, three-fifths of the members present at the time of dissolution can give the property (left after satisfaction of all debts and liabilities) to another society (Sec. 14).

Others

All documents of the society are open to public for inspection on payment of Re.1. Copies can be taken and also can be certified by Inspector General of Registration (Sec. 19).

Rest of the State of Kerala - [The Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955]

The remaining districts i.e. Thrissur, Eranakulamm, Idukki, Kottayam, Alappuzha, Pathanamititta, Kollam and Thiruvananthapuram are covered under the Travancore Act.

Registration

By filing Memorandum of Association and certified copy of Rules and Regulations (Sec. 3). All documents to be filed with the Registrar of Societies along with a fee of Rs.100.

Alteration

You are allowed to alter the objects of the society, or merge with another society. For this, you have to convene two general body meetings and three-fifths of the members have to approve the change (Sec. 18).

For any change to memorandum or rules and regulations of a society, a resolution has to be passed at a general meeting. A certified copy of such resolution effecting the amendment has to be filed with the Registrar within 14 days of the meeting (Sec. 22). There is no special provision for change of name under the Act.

Annual General Meeting

The governing body of the society should hold the first general meeting of the society within 18 months from the date of registration. After that, the general meeting should be held in every calendar year within 15 months of the previous meeting [Sec. 7(1)].

List of Governing Body Members

The society should have a minimum of three persons in the governing body. The list is to be filed every year within fourteen days of annual general meeting [Sec. 7(3)].

Accounts

The governing body of the society has to maintain proper books of accounts (Sec. 12).

An audited Balance Sheet and Income and Expenditure Account signed by at least three members of the governing body should be filed every year with the registrar within 21 days of the general meeting (Sec. 13).

The state government has power to call upon the governing body to periodically submit Balance Sheet and Income and Expenditure Account of the society.

The registrar can examine the book of the society periodically, and submit a report (of the inspection) to the government. It is the duty of the governing body to assist the inspecting officer [Sec. 19(1)].

Such Inspecting Officer can enter the premises of the society. He can also search any other place and may seize the account books or documents [Sec. 19(2)].

The State Government can pass any order that it deems fit after reviewing the report [Sec. 19(3)].

Dissolution

Three-fourths of the members or more may decide in a general meeting to dissolve the society (Sec. 23). Government's consent is required for dissolving the society, if it is a member or a contributor or interested in the society (Sec. 23).

Alternatively, 10% of members on the rolls of a society can apply to the District Court83 for dissolution of the society (Sec. 25). The State Government can also make this application to the District Court. However, it can neither dissolve a society on its own, nor can it take over a society.

Disposal of property upon dissolution

A society's property can not be distributed among its members. However, three-fifths of the members present at the time of dissolution can decide to give the property (left after satisfaction of all debts and liabilities) either to the State Government or to another society with similar objects (Sec. 24).

Others

All documents of the society are open to public for inspection on payment of Re.1. Copies can be taken and also can be certified by the Registrar (Sec. 31).