Some builders in Mumbai sell houses without clearances
Without clear land titles and construction permissions some builders in the city have been luring clients to book flats early at discounted rates. It is illegal under the law. The customers are asked just 10 per cent to 20 per cent before the first brick is laid. Such developers manage to sell 200 to 300 flats even before the project is publicly announced in some cases.
Such practices are common practice the real estate industry, point out the property experts. A builder, in a big Thane project, sold 500 apartments although the title of the land is still not clear and no sanctions have been procured. Law is, however, very clear on the subject. The Maharashtra Ownership of Flats Act says no flat can be sold unless building plans are submitted to the civic body and are approved. HDFC chairman Deepak Parekh points out that it is the customer, who has placed faith in the developer that suffers.
Builders who flash brochures showing buildings and detailed floor plans when the land title itself is under dispute should be completely avoided, points out Solicitor Parimal K Shroff. Developers an wait on commencement certificate to come and start accepting a deposit. If the permissions don’t come through, the developer returns the money with interest, adds Shroff.
Source: The Economic Times
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