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Recent Events Held :
Report
on Seminar on Buying & Selling of Flats held on October 29, 2004 Mr. V. B. Haribhakti President,CFBP welcomed the gathering and presided the seminar. In his address he elaborated about series of programmes CFBP organizing during the year. He then congratulated Mr. Subash Chander Gogia, Chairman Programmes Committee for his commitment and dedication for organizing the seminars. He further elaborated about the multifarious activities of CFBP.
The floral bouquets have been offered to the speakers as a token of appreciation from CFBP by the President. Mr. Subash Chander Gogia, Hon. Secretary & Chairman Programmes Committee then introduced Mr. Pranav Desai, a well known Architect from Atul Desai & Associates, and requested him to give his presentation.
Mr. Pranav Desai in his presentation thrown sufficient light on how to measure flat area. He explained the concept of Floor Space Index (FSI). He further stated that the FSI does not include the parking space, entrance lobby, swimming pool, garden, meter room, security room, lift lobby etc.
He then elaborated about the “Carpet Area”. He said that this is the area of the Apartment / Building which does not include the area of the walls. Normally the area available to spread carpet in the flat is considered as carpet area. He also explained the concept of “Built up Area”. This is the area of the Apartment / Building which includes the area of the walls. He also clarified about the “Super Built up Area” which includes the Built up Area along with the area under common spaces such as the Lobby, Lifts, Stairs etc proportionately loaded to the carpet area. Normally the super built up area is 30% more than the carpet area, which again differs from developer to developer. He concluded his presentation with important points to be considered before buying a flat:
Mr. Gogia then introduced Mr. Apurva Agarwal, Advocate from Universal Legal and requested him to enlighten the gathering on the legalities involved in this matter. In his presentation Mr. Apurva Agarwal explained in detail the Title of the Property, Agreement Registration / Stamp Duty, Conveyance of property, Formation of Society and remedy available to the common consumers.
He stated that the title of the property should be clear, marketable and free from encumbrances. All dues on the property should have been paid. Always use the services of a competent Advocate for verifying the title of Property. In case of the Inspection of the documents he stated that it is a liability of Builders to produce the following documents which shall be part of the Agreement of Sale
He also said that the Flat purchaser should check that the construction is carried out according to the sanctioned plans and specification granted by the Concerned Authorities. The Builder must ensure good quality materials and proper workmanship. He clearly stated that the Agreement for sale must be executed by builder upon receipt of any payment exceeding 20% of the sale price of the flat. The Carpet area of the flats should be clearly and unambiguously defined in the agreement of sale. He further stated that the nature, extent and description of all “Amenities” and common facilities must be clearly mentioned in the Agreement. With respect to the Payments made to the developers, the payments must be made according to the progress of the work, under the provisions of the MOFA, 1963 / MAOA ,1970. The Builder should not enhance (Escalation) the price of flats on any account whatsoever once the agreement for sale is executed except for additional government levies/taxes/court orders. He explained that the Stamp Duty is payable on the higher of the market value of the property or on consideration paid under the agreement. The Document has to be adjudicated before stamping. Presently the rate of stamp duty payable is 5%. The stamp duty has to be paid before signing or executing the document i.e. Agreement for Sale. He further stated that the Agreement for Sale has to be registered with the Sub-registrar of Assurances on whose jurisdiction the property is located. The Registration should be completed within four months from the date of execution of the Agreement for Sale. The present registration fee is 1% of the market value of the property or the consideration whichever is higher subject to a maximum limit of Rs. 30,000/-. Mr.
Agarwal mentioned that all conditions with regard to
infrastructures should be approved by Municipal authority / Planning
authority and fully complied with the same. In case of delayed completion beyond the period stipulated under the 'Agreement for Sale’ by developer the consumer can demand for refunding the amount taken by the Builder / Developer with interest @ 9 % p.a. or as specified in the agreement OR (b) Wait for completion and get the possession of the flat. He also stated that the Builder should specify in writing the date on which the possession of flat is to be handed over to the Flat Purchaser and ensure timely possession. The Builder should obtain completion and occupation certificate prior to giving possession of the flat to the Flat Purchaser. In case of Defective Construction the Builder should attend to all bonafide complaints of defects expeditiously. The defect liability period of the Builder is three years from date of completion of the Building and if the Builder fails to rectify the defect in the building, the Flat Purchaser has a right to receive reasonable compensation. Mr. Agarwal also informed the gathering that the Builder has to form the society. The Builder should submit an application to the Registrar within four months after at-least ten persons or 60% of total flat is sold or have taken possession of the flats. He further stated that it is the duty of the Builder to cause the conveyance of the title and interest in the land and the building to the society. Conveyance has to be done within four months from the date on which society is formed unless otherwise provided for in the Agreement of Sale. Mr. Agarwal stated the following remedies available to the Flat Purchaser against Builders / Developers:
He then concluded his presentation stating the penalties that maybe imposed on the Developer / Builder which are as under: CONSUMER PROTECTION ACT:
SPECIFIC RELIEF ACT AND INDIAN CONTRACT ACT
MAHARASHTRA OWNERSHIP OF FLATS ACT
Mr. Gogia
then introduced Mr. Mofatraj Munot,
President, Maharashtra Chamber of Housing Industry
& Vice Chairman, Kalpataru Overseas Constructions Pvt. Ltd
and requested him to commence his presentation.
Mr. Mofatraj Munot enlightened the gathering about the Code of Conduct of MCHI. Which specifically outlines the parameters of services to be given to the consumers. He further stated the Difference between Carpet Area, Built Up Area and Super Built up Area. He said that the Chargeable Area / Saleable should be the Built-up Area of the flat, plus the common areas, distributed among all the flats on the floor in proportion to the Built-up Area which can be calculated as follows:
Mr. Munot also defined the chargable area and its calculation. He further stated the areas which are excluded from the chargable area. He then stressed on the issues of consumer awareness. He said that the consumers have to insist for the information and seek clarification from the developers. He also informed the gathering that from 1st January, 2005 onwards the MCHI will introduce the system of certification to the chagable area. MCHI will verify the exact area of the flats in building and then will certify the developers. This will authenticate the information supplied by the developers with respect to the chargable area. All the Speakers including Mr. K. T. Jithendran, General Manager (Marketing), Godrej Properties & Investments Limited then satisfactorily answered queries raised by the audience. Mr. Dinesh Parekh, Vice President, CFBP then gave Vote of thanks and expressed his gratitude towards speakers, sponsors, representatives of various newspapers – News Channels and the distinguished audience for attending the seminar. An information booklet on Purchase of Flats were distributed to the audience at the end of the seminar. |
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