Skip to main content

Why most builders charge extra, what is hidden truth?

Bangalore has earned a bad reputation with property buyers for squeezing out a huge sum which is much beyond the agreed terms. The exorbitant amount of money is demanded for speeding up the approvals, registration and khata. Fortunately some builders like CMRS Group are transperant with buyers and tell them upfront about the money needs if any and the approximate amount, in most cases such money is not needed.



But with many other builder, property buyers suffer as the builder demands unjustified amount upwards of 1 lac as an amount to be paid as bribes at the sub-registrar’s office apart from the price paid for the property. The bribe demand continues from document to document. There are different rates fixed for water connection, electricity, plan sanction, built-up area approval, the all important khata certificate and sale and title deeds.

If you sign the agreement, and the building work started during the time when the quote was still valid, the builder can’t charge more for carrying out the work agreed between you. This is true even if it costs the builder more than they expected. The price can only change if the builder agrees this with you because there is a good reason, such as a need to do extra work based upon your request or due to change in situation.


How to safeguard?
  1. Past History - Always check the reputation of builder on ethical ground. Validate this with previous customers on how supportive the builder had been
  2. Fair Value - Bribe is a sin, but even if you have to do it, check the prevailing "market rate" and insist that the builder uses the influence to get it done cheaper
  3. Trusted Staff - Check if the builder has dedicated staff to deal with authorities, talk to the staff and build trust with the person. If you feel the right vibes, go ahead.
  4. Specifications - Insist on putting the specifications with brand names and features in agreement, this will safeguard you from overcharging for any changes in specification which you did not agree upon. 
  5. Agreement - The agreement should detail various costs that you will need to bear for buying the house. This should include the cost for utilities like electricity, water, parking space, many kinds of taxes, and in some cases even registration charges. However, the builder may then levy extra charges for any of these. 
CMRS Group has very reputed ethical behaviour, the legal staff is very friendly, specifications are detailed and puts every finer detail in their agreement, so there are no surprises.


For any property advice, free legal advice and any other assistance while buying a property, feel free to call at  +91-7676-122-000 or send an mail to info@cmrsproperties.com

Popular posts from this blog

Buy or Rent, What should you do?

The choice between buying a home and renting one is among the biggest financial decisions that many people in bigger cities need to make. But the costs of buying a home scares many people off when they compare the EMI with their current salary. It may not be always true as with the tax benefits your effective in hand salary increases and your balance salary after EMI instead of rent does not reduce much. Also the decision to buy becomes easier if you choose to buy from CMRS Group, which offers CMRS Royal Orchid, luxury smart, green homes starting from 33 lacs and give the possession to you in little more than a year.



Buying Cost
Initial costsare the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.Recurring costsare expenses you will have to pay monthly or yearly in owning your home. These include EMI payments, maintenance and renovation costs, property taxes and homeowner’s insurance. Property taxes, the interest …

Row Villas are a New Fashion in Bangalore Realty?

Villas continue to be a dream home for many, but they remain pricey at good locations. People choose to buy high end apartments instead, but Bangaloreans are queuing up to buy Row Villas which are located at premium locations and costs the same or lesser than high end apartments.  For example, CMRS Couryard (http://cmrsproperties.com/views/courtyard.html), located at Varthur main market near Forum Value Mall is a big hit among buyers. 

Row houses Properties come in the category of urban homes, which are located in the same area and are coherent with each other in architecture, design, and appearance. Row villas are premium segment of row houses. The row houses segment, though less in the overall market size, saw the highest increase in sales velocity in Bangalore with a rise of 23 per cent and only 9.4 months inventory. A clear indication of the growing demand for this type of property.
Advantages of Row Villas: Costs less than villas with private gardens providing the higher luxury for p…

Occupation Certificate (OC), the Hot Item which is rarely SERVED by Builders

Do you know the BDA had sanctioned the building plan and issued CC and OC for Mantri Tranquil project, but BESCOM disconnected the electricity finding the violations?

The reason, the BDA ignored the fact that the project was within BBMP limits and that the two blocks of the Mantri Tranquil were built on the storm water drain! The fact remains that the property buyers don't know the importance and meaning of occupation certificate in its true sense. This information asymmetry allows a builder to take customers for a ride.




It can be assumed and granted that the small budget homes will be made with little deviations and occupation certificate for the same should not be expected. Such homes have to wait for akarma sakarma to pay the penalty and regularise the construction to get the occupation certificate.

But how can you forgive the builders, who charge upwards of 75 lacs and do not provide valid and appropriate occupancy certificate?

Without OC, the building is technically unfit for occ…