buying it from. Try if by chance the project gets delayed to meet the deadlines, the developer should
pay the interest on that has to be taken in written. Some people give preference to the houses that are
already developed and some give preference to the ones which are about to be developed. The
developer and the buyer both await the date of completion of the project. No buyer will want any delay
from the developer’s side at least after investing the hard earned money. By chance if there is any delay
it will definitively affect the buyer’s pocket. When compared a project is completed on time to the one
which is delayed, one will have to pay extra interest. It affects more to those who stay in rented houses.
Since they have to pay the rent along with the EMI’s of the loan they would have taken. And the fact is
the initial EMI is of the interest on loan until the project is completed.
Real Estate Research Company Greycell Communication’s CEO Mr. Vikas Sharma said that generally
when you choose a construction linked plan the banks provide loans in different stages. The first part of
loan is provided when the residential project is being planned. As soon as the development begins the
bank provides another part of the loan. A point to be taken into consideration is that the installments
are to be paid as soon as the first part of the loan is provided. Actually the monthly installments are to
be paid only when the house or flat is ready for possession. Before acquiring the possession of the place,
monthly installments of the loan are suppose to be paid of the amount which the bank has given it to
the developer. The installments of the loan’s principle amount with interest are to be paid only when
the complete amount is provided to the builder by the bank or any housing finance company.
If the monthly installments of the loan are taken prior to the completion of the project and there is a
delay in the project, it is definite that the total amount to be paid will increase. Before booking for a new
flat, it should be mutually decided who will pay the amount of interest if there is any delay in the
project. A proper clarification is required on such matters and it should be in written to avoid any
problem.
If at all there is a delay in the Construction linked plans, things are messier when the terms and
conditions are verbally decided and not in written. So if possible for a buyer, he should buy a house
which is already built if it fits in the decided budget. And if a buyer is keen on buying a house in an
upcoming project then he should definitely have a check on the company’s history and its reputation in
the market.
Posted: 03 Oct 2012 01:09 AM PDT
By Accommodation Times Bureau
By Vaibhavi Vasant
Loans & Property Curry
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