Somebodyspecialin (Software engineer) 17 October 2012

Builder vs buyer rights - super builtup area

Hi Experts,

I am new to this forum. I am trying to find some answers and get high-level understanding to see if i am being cheated by the builder so that i can proceed for the legal notice. Please help me with this.

I am going to lawyer but just wanted to have some high level understanding before i go.

I purchased a flat in Indiabulls (IB) Greens chennai with all my life's savings and with bank loan thinking that they are big builders, nice location close to office and my friends are also purchasing.

1. Super built up area(SBA):

Question:

Can builder suddenly increase SBA? what comes under SBA? who owns terrace of the blocks? Can SBA increase be different for different towers of same floors, same size and shape? Does buyer have the authority to get the details of the complete plans, reasons and math for UDS and SBA?

Facts:

a. I paid total 90% (25% by me and 65% thru bank) and now builder is mentioning that SBA is increased from 1243 sqft to 1353 sqfr which is an increase of 110 sq.ft.

b. i am actually getting only approximately 65% of the SBA as carpet area now. Are there any rules on how much minimum carpet area should be?

c. In the agreement it is written that IB can incrase SBA and the buyer is supposed to pay at the rate originally purchased

d. IB is not giving details how the SBA suddenly increased but they are just mentioning that we will give ownership of club house to the association that they will help forming. They are not sharing the math behind the UDS and the SBA. Note: only one club house for both phase-1 and phase-2

e. clubhouse is 17000 sqft. Total apartments - 350 in phase-1 and in phase-2 god knows how many. they are asking buyers to sign agreements for 7 floors but they are working on CMDA plan for 19 floors..it could potentially be more than 1000 apartments. Increase in SQ.FT of SBA is not common to the towers even though apartments of same size.

1000*110 = 1,10,000 but they are constructing only 17000 sq.ft and thats the only thing they revealed

f. They are even collecting 1,00,000 as club house membership fees

g. they are mentioning that Terrace will also be given to buyers and thats why SBA increase - do they really own the terrace?

h. they are telling they wont share how the SBA is arrived at and how UDS is arrived at? they will just share the supplemental agreement for clubhouse and amenities

2. Amenities:

whatever was promised and written on the brochure were not given? can buyer have right to ask for it and proceed legally? Unfortunately they didnt write any amentiies agreement yet?

if they are not providing amenities, why will i go to them? ther are local builders who wont do amenities but just build smaller 20 to 40 apartments with better quality and all provisions and with better UDS for lesser price.

Thanks

Rams

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2 Replies

Ankit Ahjolia (IR Officer) 17 October 2012

Hi In Gujarat buyer gets even 60% or 55% of Super Built up area. Main thing is you should be fine with the space allocated for each room. Most builders and developers often include carpet area, the area occupied by the walls and your apartment’s proportionate share of the common spaces of the building such as the lobby, lift, staircase and corridors. Some builders even include the terrace, pump house, security room, the area occupied by the compound wall of the building. The total area of these is divided by the number of flats in proportion to their size and the result is added to the super built-up area. Always check with your builder or seller what exactly he means by super built-up area and how he calculates that figure. Then make comparisons between various houses you are considering to buy. And if your builders dont explain you why they are increasing SBA then better send him legal notice about seeking explaination of increase in SBA if he doesnt give you explaination then you can drag him to the court. Irrespective of the agreement because you are buyer and you have right to know why SBA increases suddenly.

S Jadhav 98336 98330 (Jadhav & Associates) 17 October 2012

As per law, the builder's are supposed to charge only as per carpet area and this law has been in existence for many years.

However, the builders have not bothered about following such laws as they know that no one will fight with them. Paani me rahekar......

Actually, the builder is supposed to charge only as per carpet area and the rate can be higher or lower depending on the lcoation of the plot, facilities that the builder is providing etc.

The builders have realised that by making something called saleable or super built up area, they can get more profits and hence they do so. The buyers are very weak in comparison to the builders so nothing happens to them. Even you cannot do anything.

If the builders did ot make adequate money, then you would not find so many people wanting to become builders. It is a very profitable line of buseness. however, you also have to work hard in creating such projects and innovative ways of making higher profits. Of course you can always learn from each other. E.g. Why should you pay so high for a common amenity as compared to what you get in the flat itself?

However, you can still go to the Consumer Court where you may get some relief and that do in shorter time period as you have a case to fight.

S Jadhav