A startling figure has come to light during the 2011 house census. The census says that out of the 3,89,019 structures classified as houses, 54267 houses are vacant (without any occupant).This is roughly 13.94%. This survey was undertaken by the Govt. Out of these structures,2,52,201 structures are used purely for residential purposes,4215 are used for mixed purposes and 36,394 are used as shops and other uses.582 structures are for academic purposes,1603 as hotels and 1176 as hospitals and clinics,5015 as factory and workshops and 836 as places of worship. Confronted by these shocking statistics, the builders reacted with the usual shrug of the shoulders, saying that it was not possible. Many attributed the statistics to investors who keep the flats locked up and wait for the market to shoot up. Other builders also feigned ignorance of such a possibility. Whether this survey included newly constructed buildings or not is not clear. If they weren\’t included, the actual figure of vacant houses may go up by a few thousand more houses.
Sky Properties, Nerul, Navi Mumbai
Address A-1, 7,2, Sneh Co Op Society, Plot no 16, Sector 19a, Nerul, Navi Mumbai 400706 Call Us 9987452642 mayur@navimumbaiestate.in
There has been flood of offers by builders recently, offering weekend homes/farm houses/villas etc situated outside city limits but within a couple of hours driving distance from the city. Though the prices are cheap compared to city living, the main deterrence/worry is the legal status of the land in question. How does one verify whether the houses shown in the brochures have all the necessary permits, since village land does not come under Municipal jurisdiction. The steps for the same are outlined below..
Check whether the Non-agricultural land order has been issued by the Tehsildar. Do not believe the Non agricultural order shown by the builder/developer as this may be forged. Contact the local tehsildar office with the gut/hissa number (as per 7/12).
Non-Agricultural land certificate is valid for a limited time. So check whether the land is currently Non Agricultural. You can also check online for the latest 7/12 which shows the current owner of the land….along with the status (NA or Non-Agricultural land)
Check the latest 7/12 extract of the land. This should specify the said land as Non-agricultural land. No construction can take place on agricultural land.
Check with the nearest town planning dept office whether the housing project plans confirm to the overall development plans of the plot of land. The development plan of the area should be in the local town planning office (Collector\’s Office of the District)
For even more security, try to get an official survey of the land done via the local tehsil office ( the tehsil office undertakes surveys of land for a fee ), just to verify whether the plot of land being shown to you is actually the land that is on the 7/12 order, tehsildar order, town planning approval.
If you are buying agricultural land in Maharashtra, you need to have agricultural land elsewhere in India or Maharashtra on your name. This patta will be required at the time of registering the sale deed. And it needs to be translated into English if it is from out of state.
A copy of the land survey form which has to be completed and submitted at the Superintendent of Land Records office for getting a survey done and boundaries marked on any piece of land. Sample of the Form is given below
Just because the ownership records in the Talathi office are clean does not mean that the land is clean. Despite land records being clean there could be multiple court cases on the piece of land. And you will never know this unless you decide to undertake a detailed investigation of the legal records. And if you think you will simply search online on the court websites, you will be groping in the dark as the court website does not give any details unless you know the date or year of the case filing.
Caution : Dividing big plot with govt given survey and hissa number into smaller plots and then building bungalows on it or selling individual small plots is illegal without collector/town-planning dept approval.Its A violation of the Gunthewari act (Law) of Maharashtra. And most of the so called ‘Bungalow Projects’ and ‘weekend homes’ are illegal for that reason.
Once you have verified and signed and registered the sale deed, its a must to get fencing done around the plot to prevent encroachment.
Services Offered by us
Charges
CIDCO Transfer only
15,000
Mortgage NOC only
15,000
CIDCO Transfer + Mortgage NOC
20,000
Only Drafting/Documentation
5,000
Drafting and Registration of Sale Agreement/Sale Deed
10,000
Brokerage (Purchase/Sale transaction)
2%
Brokerage (Rentals)
1 month rent/year
Consultation over Phone/Whatsapp/Zoom/Google Meet
5,000/30 mins
Property Tax Name Transfer
10,000
Water Bill Name Transfer
10,000
Sky Properties, Nerul, Navi Mumbai
Address A-1, 7,2, Sneh Co Op Society, Plot no 16, Sector 19a, Nerul, Navi Mumbai 400706 Call Us 9987452642 mayur@navimumbaiestate.in
A new sensational fraud has been unearthed in the Dombivali region of Mumbai. Six conmen -Sunil Gawde, Sunil Bodhare, Satyawan Kadam, Ajay Kolte, Vishal and Mritunjay Singh came up with a unique plan to defraud people by targeting areas falling out of the Dombivali-Kalyan Municipal corporation. Since areas which are out of the Municipal corporation supervision fall under the approval of the collector, Deputy collector and Tehsildar, the accused forged documents of approval from all these officials and made over 40 buildings in the villages of Bhopar, Davdi, Azade, Govali and Nandavli, all located on the fringes of Dombivali. They would also forge the NA (non agricultural) permission which is required to construct in rural areas. The gang was operational for the past 2 years and used to lure buyers by placing ads in local newspapers and cable tv channels. A case of fraud and forgery has been lodged against them by the Ulhasnagar police station. The scam came to light after a tip off to the police.
Update on 11 June 2012 As a follow up to this scam investigations,20 more builders have been found guilty of similar violations.33 builders have been booked of which 6 have been arrested while 27 are absconding. Police sources said that a couple of them were close to MNS and BJP mla\’s. The tally of illegal buildings have crossed 100.Collusion of members from the gram panchayat etc cannot be ruled out.
Why demand 2.5 FSI when redevelopment can be done in 1 or 1.5? This question arises after the residents of C-2 type in Vashi demand 2.5 FSI against GDCR
By Shilpa Suryawanshi
NAVI MUMBAI: In 2007, i.e. 4 years back, Indian Institute of Technology (IIT) Bombay, Powai had done structural audit of C-2 type building numbers 1 to 10, in sector.16, Vashi. In its report these buildings were categorized in ‘category: c1’ which means ‘Buildings are in extremely dangerous condition and may collapse any time soon.’ Almost four years back, the C-2 type Apartment Owners Association (AOA) was in possession of IIT report but interestingly it approached Navi Mumbai Municipal Corporation (NMMC) only in 2010. It is questionable that if buildings were declared as dilapidated and inhabitable, then why AOA waited for 4 years and not vacated the buildings soon after the report? The proposal of AOA regarding declaring these buildings dilapidated was submitted to NMMC in 2010. Soon after having proposal in hand, NMMC Commissioner, Bhaskar Wankhede appointed committee for reviewing the proposal of AOA. Committee agreed with the IIT report and sent letter to AOA stating that buildings are dilapidated.
Extended buildings in Navi Mumbai
The Navi Mumbai Municipal Corporation’s Government Development Control Rule (GDCR) clearly states that if buildings are declared as unsafe then they should be vacated immediately or within the specific period. In addition to this, it also mentions that if the owner or occupier fails, neglects or refuses to comply with the notice then corporation should remove the danger by demolition or by repair. Now if one goes by that rule then under the directives of Municipal Commissioner, these buildings should have been vacated long back without delay.
Encroachment division head (of NMMC), Subhash Gaikar who was one of the members in Committee said, “Under the directive of Commissioner we have given notification in news paper and have suggested to association that buildings are in dilapidated condition.” He added, “After publishing notification and sending letter to association our responsibility has ceased.” His statement is clearly in non-compliance with GDCR in which it is clearly stated that if owner neglects the notice then corporation must remove the danger by immediate demolition.
CIDCO constructed SS type houses in Navi Mumbai
Now the Residents dwelling in these buildings are blaming CIDCO for poor construction and instead of reconstructing buildings are demanding 2.5 FSI whereas as a matter of fact these buildings must be built in 1.00 FSI, as the same provision is also mentioned in GDCR, although corporation is inclined to approve 1.5 FSI through change-of-user, but there is a stay on the same.
President of AOA, Subhash Shewale, who is demanding 2.5 FSI said, “In near future we may start reconstruction work with 1.5 FSI (even when there is a stay on change-of-user) but at the same time we will keep provision for 2.5, as we are sure that Naik will get it sanctioned for us.” While vying for 2.5 FSI he has full faith in Thane Guardian Minister Ganesh Naik and MLA Sandeep Naik that they will win additional FSI from state government.
Let us remind you that in last corporation election, Ganesh Naik had assured that he will get approval for additional FSI from state which apparently led to his National Congress Party’s victory.
RTI activist, who has unearthed hidden facts said, “When these buildings can simply be redeveloped in 1 FSI, or say, 1.5 FSI, through change-of-user, then on what basis the said association is demanding for 2.5 FSI.” He continued, “These buildings were just built in 80’s besides later the association had also carried out extension and repair work of buildings, then how can they be declared as dilapidated.” He is also doubtful about the IIT report, he said, “How can IIT declare these buildings dilapidated which were repaired and extended just four years back by association. If anyone is truly going to benefit out of redevelopment or reconstruction then it will be no one but builder’s lobby.”
Builders lobby will benefit because if the height of buildings is increased then the value of land will go up too, besides due to additional FSI, residents will get bigger flats.
It is questionable that why anyone should demand for additional FSI when they have only paid for present area to CIDCO, besides there has been no provision in corporation’s GDCR for the same.
In the present case, said association ethically cannot blame CIDCO for poor construction since in past, association itself had repaired and extended buildings, besides if reconstruction was no good then how NMMC’s Town Planning department gave Occupancy Certificate to buildings.
If buildings are given additional FSI in Navi Mumbai then it will create a load on municipal services, likewise with increasing population, the city will feel immense pressure in terms of accommodation of vehicles in limited space.
In current scenario when corporation is already finding it difficult to accommodate vehicles, then additional FSI if at all sanctioned, then no wonder it’s bound to play havoc in so called ‘planned city’.
In our recent experience, particularly in Navi Mumbai, we have come across numerous instances of builders giving a false picture to flat buyers, in order to sell their flats. Some of these methods are listed below and could be classified as scams to rip off the gullible customer….
“There is only one flat available”
This is the most common statement made by builders to any inquiries about their projects. It is more prevalent in smaller buildings of 4 floors or less. These are typically small plots of 200 sq. meters in Navi Mumbai and are usually Tripartite (also called CIDCO transfer plots by some builders). This is done to project a false image of a booming market. In most cases the builder has not even sold a single flat, let alone all flats. He makes this statement expecting the buyer to hurry his purchase and to sell his unsold flats. And normally this ‘available’ flat is either the ground floor or the top floor or some other location with a really bad ventilation or view. This is the flat that will give him the maximum headache while selling, therefore he wants to sell it first. In big projects, its normally the 4 bhks which the builder wants to get rid of first. 2 and 3 bhks are relatively easier to sell.
“All flats have been sold to investors,you will have to buy from them,there is no flat available directly”
This is nothing but another attempt to make you feel that the flats are in such a huge demand that there are none directly available from him. But dig a little further and ask him for a copy of the registered and stamp duty paid sale agreement of all those investors and you will be told that he doesn’t have anything like that because they have all paid in cash !! So basically he can catch a sweeper and make him appear like an investor cause cash payment has no record. Dont believe any such crap. This is just a trick to make you believe that he has sold all his flats. In most cases, he has not even sold a single flat.
Selling same flats (area-wise) at different prices to different buyers
The Real Estate market is the cash cow for politicians. They invest heavily via proxy companies and shell companies. It is also heavily funded by policemen. They plough all their ill-gotten wealth into real estate. Their black money funds builders in a big way. They don\’t want to let go of this money machine at any cost.
Mayur – Sky Properties
One way to find out whether you have been ripped off is to file an RTI with the Registrar of Societies of the district where the project is located and source out all the documents filed for registration of the society. These documents have details of all the flats that were sold and the price which were sold at along with the date the flat was sold on. Don\’t be surprised if you find you were ripped off a few extra lakhs than your next door neighbor. But this is much after the flats have been sold and the builder has formed the society. By then it may be too late to save your money. Photo below shows the list that the builder has to file with the registrar of Societies. Take a look..
“For carpet area,subtract 33% from the Saleable area (super built up area)”
This is the biggest scam being practiced on gullible buyers. When a builder tells you to assume that loading is just 33%, you can safely assume that the actual loading is almost 50%. You will end up paying a few lakhs more just because of this scam. It is safe to assume that in buildings that have been constructed recently (upto 3-5 years ago), the carpet area is exactly half of the built up area or maybe even upto 40% of the super built-up area. This is the main reason why older buildings are actually cheaper when compared via Carpet Area, since their carpet area is much more. The technical term for this scam is ‘Loading’. Please read other sections of our website for detailed explanation of this scam.
PS : With the advent of RERA, this lie has been curbed to a certain extent as the RERA website has the carpet area mentioned. But one should double check this area with the actual area as sometimes the builders give wrong and misleading information to RERA and RERA authorities blindly upload the same on the website. Caveat Emptor.
“You will get the legal papers only after paying the cash component of the deal”
Honest builders should give you a copy of all legal documents like title certificate, Municipal sanctioned plans, sample sale agreement (on blank paper) etc which you should get verified by a lawyer. The lawyer will normally not charge you to look at these papers. Don’t make the mistake of blindly paying the builders in cash. You will never get it back and you will be trapped.
PS : With RERA, this lie has also been curbed to a certain extent, since these disclosures are found on the RERA site…but recently there was a massive scam where some fraudsters forged building permits of the municipal corporation and land documents and got their projects listed on the RERA website. The buyers blindly believed the RERA authorities and booked flats in those projects (more than 55 at the last count) and lost their money. Just another day in Mafia Nation. See full report here
Flat is Vastu Compliant
This is another lie which the gullible liar swallows without a question. The builder does not substantiate his claims in any manner. No Vastu Charts or Autocad Drawings with the Vastu zones clearly marked are shown in the brochures. Simply saying that Entrance is facing the north or kitchen is in XYZ direction is nowhere close to what real Vastu is all about. Real Vastu involves careful plotting of the flat or home in Autocad and then superimposing the detailed direction map on top of the Autocad design to see the actual positions of the rooms and directions. But no builder will tell you all this and they will not show any evidence that their flats are Vastu Compliant. What the builder says is North may not be the accurate north. And even if it is the North direction, the other directions will change depending on the shape of the flat (Square or Rectangular). Any so-called ‘Vastu Expert’ who does not even plot an accurate floorplan of your flat in Autocad is just fooling you.
If any builder claims Vastu Compliance, ask him to send you the DWG file (Autocad file) of the flat and then you can send it to your Vastu consultant for careful verification and analysis. This is the only way for accurate Vastu analysis.
Society formation charges,Parking charges,Development charges.
Basically, you can safely assume that these charges will be taken in cash and no receipt issued as all of these charges are illegal. Builder does not sacrifice any FSI for parking area and hence its free for him. Supreme court has banned sale of parking space. What the builder doesn’t tell you is that he is not only charging for the society formation but also taking money for the conveyance of land and building to the society after its formation. Development charges are also illegal. Society formation charges are a scam as the registration of the society barely costs 5000 rupees and its the builder’s responsibility and expense to form a society as soon as he sells 60% of the flats in his project. Conveyance of land and building to the society is also the builder’s responsibility and expense. He cannot make the end consumer pay for it. If he does, you can take him to the consumer court. Even if he does not form a society or give conveyance, he can be taken to the consumer court. The decision is quick and will always come in favor of the society/flat purchaser.
How to Proceed legally against Builders who do not form a society and give conveyance to it :-
Flat buyers (*registered societies) can collectively hire an advocate for Rs 25,000 to 30,000. These charges include drafting and filing the papers in the Consumer Court, attending the hearings, arguments, serving notices and getting the certified copy of the final order of the court and getting a decree from the court to execute its order. These things must be made clear to the advocate in the beginning of the case in writing and his signature obtained on a piece of paper. If you neglect this, you cannot pursue a truant advocate. The Supreme court pays advocates it appoints as amicus curiae (friend of the court), Rs 6,000 at admission stage and Rs 10,000 at final hearing. So do not think that these charges are ridiculously low. And if you think that these charges are unrealistic, you can click on this link to see the official rate list of advocates in Supreme Court.
Consumer court handles these types of cases day in and day out. Its an open and shut case for them. Its not some super complicated or difficult matter. Approach the consumer court with confidence. The order will come in your favor at a fraction of the cost that you would pay for conveyance and registration yourselves.
Profit Margins of builders (Minimum 150%-200% margin)
When a builder quotes a price to you (per sq foot), you must assume that his construction cost + land cost + interest cost is exactly half of what he is quoting you. This is the bare minimum. An easy way for you to figure out a reasonably accurate figure is to first figure out his land cost. In Navi Mumbai, CIDCO gives prime plots on Tender. And winning bid can be found out via RTI filed with CIDCO. Then you calculate the built up area of the entire structure. This information is available on the RERA site. In Mumbai (Maharashtra) the cost of construction for the best quality construction is Rs 4000 per sq ft (includes everything including fittings and finishing) . This includes everything. If the builder compromises on this, he can cut down the construction cost to Rs 2000 per sq ft. Once you have his land cost and total built up area calculated, you can arrive at a fairly accurate figure of his cost of construction and land cost. Once you figure that out, its simple maths that will tell you how much it cost him to construct your flat. And in most cases you will see that its exactly half of what he is pricing his project at. Sometimes his margin is 200%. If you want you can even calculate the interest cost of his loan (if he has taken one)..cause construction of a Ground + 17 floor structure in Mumbai takes at least 1 year. A builder needs his own source of funds to complete upto 2-3 slabs of construction. After that he funds the rest via funds taken from buyers. If he is short of funds, he will sell a few flats to get some funds and continue construction.
If builder manages to sell 1/3 of the flats via booking during pre-construction or construction stage, he has funded his entire construction. He can relax and sell the rest of flats at any fat price he wishes. You can get max discount from the quoted price (upto 30% discount) during the initial construction phase or pre-construction phase. If he is really short of funds he may even give you a 40% discount … so that his construction can continue. So basically, for a builder, the main task is to somehow sell 1/3 of his project, even at a discounted rate, to fund the rest of the construction.
This should give you a good starting point to bargain with builders. When any govt dept issues tenders for a certain job, they calculate how much it will cost to complete the job. Then they issue a base price. This base price is calculated at cost + profit margin formula. Whoever bids closest to this price wins the bid.
Negotiate from a position of knowledge and inside information.
Price chart for our services
SERVICE
CHARGES
CIDCO Transfer only
15,000
Mortgage NOC only
15,000
CIDCO Transfer + Mortgage NOC
20,000
Only Drafting/Documentation
5,000
Drafting and Registration of Sale Agreement/Sale Deed
10,000
Brokerage (Purchase/Sale transaction)
2%
Brokerage (Rentals)
1 month rent/year
Consultation over Phone/Whatsapp/Zoom/Google Meet
4,000/30 mins
Property Tax Name Transfer
10,000
Water Bill Name Transfer
10,000
Pricing Chart for Our Real Estate Services
Sky Properties, Nerul, Navi Mumbai
Address A-1, 7,2, Sneh Co Op Society, Plot no 16, Sector 19a, Nerul, Navi Mumbai 400706 Call Us 9987452642 mayur@navimumbaiestate.in
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