Both parties in an agreement have to be equal. Who drafts the agreement? Do you have the right to change any word / clause in agreement? You are paying money to the builder, not sales staff. But you are forced to deal with sales staff, not builder. Payment is done as per builder's schedule, not yours. Delivery is done as per builder's schedule, not yours. Application form is a visible sign of the builder's authority, which you are forced to meekly fill up and accept, with all its discrimatory terms and conditions.
For which other product do you pay a substantial token and fill up an application form, where strict terms and conditions are put upon you by builder? Can a luxury car manufacturer say that you apply for a car, and the manufacturer reserves his right to reject your application? If the automobile company says in its contract that you have booked a big red car, it does not deliver to you a small white car.
Does a car seller say your car has five seats, because you can make your baby sit on the dashboard, or inside the dicky? But a builder makes you count flower beds as usable carpet area.
There are strict dates for your installment payments. There will be fines and penalties on you for late payment. But there are very lenient dates for delivery by builder, and no fines and penalties for builder for late delivery.
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Why real estate deal is flawed:
Builder is an authority in real life, although not in law. Builder is like government. Election promises need not be delivered, but you cannot cancel the election. Elected party will stay in power for five years.
1) Your end of the deal is front-ended. You pay first, no questions asked. There are no excuses for late-payment. You must pay on the scheduled date, whether you beg, borrow or steal money.
2) Builder can punish you with strict penalties and fines. Punishment is immediate. Punishment is imposed by the builder's staff themselves.
3) You cannot withhold payment. When he tells you to pay, you can't argue. You must pay.
4) Builder's end of the deal is back-ended, and in case of delay, non-delivery, difference in design, etc, there are hundreds of excuses for builder. You cannot directly punish the builder in any practical way.
You have to go to court, and there again, builder will punish you by forcing you to pay a lawyer and personally attending hearings, although he will not do the same.
So, builder has power to punish you, but you have no power to punish builder.
Unequal relationship. Huge inequality.
Solution: Buy from the secondary market. Buy a pre-owned house. There you have equal relationship with seller. He is a normal person, just like you. You have genuine negotiating power. You can also impose terms and conditions on the seller, as he does to you.
ISSUED IN PUBLIC INTEREST BY
Krishnaraj Rao
9821588114 and 8169471229
krish.kkphoto@gmail.com
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