Since the advent of the Real Estate Regulatory Authority (RERA), it has helped a lot in protecting the interests of investors as well as end users of the realty sector. This institution has also put a rein on builders and developers who indulge in all kinds of malpractices. Despite this, many builders try to charge higher prices from customers for the properties in their projects through some means or the other. Many builders are not shying away from charging PLC i.e. prime location charges from customers, whereas RERA has clearly stated that the price per square foot determined by the builders should include the total price of the property and no additional charge of any kind should be taken from the customer.
Property expert Pradeep Mishra says that in such a situation, when you are booking a house in a builder or developer's project, then definitely talk to him about these hidden prices. Also, make sure that apart from the price stated and determined at the time of booking, he will not demand any additional amount from you. By the way, let us know in what form the builder can demand additional money from you after booking the property.
EDC and IDC
EDC means external development charge whereas IDC can be understood as internal development charge. Till a few years ago, builders used to demand this amount after booking when the project was half-built or at the time of possession. This kind of amount was demanded for the development of infrastructure inside the project and in the area where the project was located. But given this manipulation in prices, RERA took a strict stand and asked the builders not to demand any such amount. Now builders and developers have started including these charges in the property price.
Parking and club membership
In the projects of private builders, there are two types of parking options, open and covered, for which the builder charges Rs 1.5 to 5 lakh from the customers. On the other hand, the amount is demanded in almost the same proportion for club membership. However, RERA has clarified that the builder cannot take money from the customers for these items also.
Extra electrification charge
Common areas of the project such as parks, footpaths, internal roads, stairs, etc. require additional lights and wiring. But the builder does not bear the cost of this and its recovery is also put on the customers buying homes in the project. The information about this charge is also given to the customer by the builder at the time of possession of the property. Understanding your rights, you can ask the builder to pay this extra amount. But, this will be possible only when you have already got it written in the builder-buyer agreement that you will not pay more than the price fixed for the property at the time of booking.
Late payment penalty clause
At present, the number of customers buying properties by taking advantage of the facility of home loans is high. As far as any under-construction project is concerned, the loan is sanctioned by the banks on such properties as per the construction-linked plan. Construction link means that as the project gets built, the loan amount will reach the builder in the same proportion. Many times the bank is unable to release the loan installment on the due date, for which the builder imposes a late payment penalty on the customers. On four such occasions, the builder charges interest on the amount and takes it to lakhs of rupees. If the amount is not paid, the threat of canceling the booking of the house is also given. Therefore, at the time of booking, try to get all the things related to your interests written in the builder-buyer agreement, so that you can get a good property at the right price.
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