TRIPARTITE AGREEMENTS IN REAL ESTATE MATTERS
HOW FAR CONSUMER IS PROTECTED
During
the last decade ,builders have marketed
with the customers with a new attractive idea and offer –enter into tripartite agreement
between the buyer ,seller and the bank for loan. The scheme entitles the buyer of flat/house/ to get loan
for any huge amount of around twenty lacs
to be repaid in instalments spread over for as many as twenty years.The
attraction for the customer is that he
is not to pay any instalment till the construction is complete . Builder says-‘Dear
buyer ,you need not worry for payment of instalments ,I shall pay all till you
are given possession of your flat. You only have to pay balance instalments when
construction is complete .Just relax, take loan and wait for your sweet home’
There is absolutely no betrayal from promise .Bank
advances the entire amount ,say twenty lacs in one go strait to the
builder.Builder gets entire amount needed for construction from all allottees
,starts his project spending no single money from his pocket .On the other hand
,buyers has parted with entire construction cost , taken on loan in one go
where as per the scheme ,payment needs
to be made on construction based scheduling of payment. Now builder pays
instalments of interest on the loan taken by the buyer till the construction is
over and during the course ,attracts more buyers,books more flats as the construction
proceeds . He looses nothing but instalments to be paid start from the day one
in a manner that huge amount of interest is paid in early instalments and principal
amount at later stage . With the result,when construction is over,possession is
given ,he is left with almost entire principal amount yet to be paid .he is
under loan for ten –fifteen forth coming
years,Builder has paid only interest till then.In other words ,he has used your
money and paid interest to the bank
There are in between situations when buyer is shocked-
·
When construction does not start due to
any reason,(non-approvals from authorities,short of funds) builder does not pay
instalment of interest to bank and bank asks you to pay the instalment.-you
really do not know you have agreed the
terms
·
In case bank is to pay loan to the
builder as per construction based scheduling and when construction does not start ,bank
stops release of payments further,builder threatens to cancel the booking due
to non payment –you might have agreed this clause too.Builder may give hundred
reasons for snon start of construction.You may go on writing with no response .
·
Even you have not agreed any such
adverse terms but the fact remains-you have applied for loan,loan is
sanctioned, payment released ,instalments are to be paid either by buyer or by
the builder. Bank has to recover the loan and failure on the part of any one
,flat is under mortgage to bank . Buyer is barred to get possession
These are the cases coming up before the consumer
courts.If every thing goes well ,it is good planning for getting home in the
heart of city but if it fails ,consumer must understand the consequences
of such agreements.
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