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