Builders Cut out of Resale Deals

If developers do not give conveyance certificates, Govt. will

Sudhir Suryawanshi l Mumbai

Developers will no longer have a say in redevelopment or resale plans, the state government recently announced. So if you are still to get the conveyance certificate of your flat, do not despair. The state housing department has a backup plan. If a builder has failed to give a conveyance certificate within four months of completion and handing over flats, the local deputy registrar’s office will issue a deemed certificate.  This effectively means no objection certificates from developers will not be needed anymore. It is well-known that builders/developers deliberately hold on to conveyance certificates even after handing over flats to buyers. Till now certificates were a must for redeveloping or reselling flats. Even banks made NOCs from developers compulsory while disbursing home loans. Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association (MSWA), said developers often exploited buyers in the name of certificates. “They charge Rs500 per square feet on average while giving NOCs in connection with resale of flats or seeking bank loans to buy a flat or registering housing societies or simply going for redevelopment,” he said. “I hope, this new circular will curb the malpractice in the housing sector.” The state housing department has already informed the property registration and stamp duty department and the City and Industrial Development Corporation (CIDCO). “The deputy registration officials at the district level will call a housing society and the building’s developer if certificates are not issued,” Prabhu said. “And they will issue deemed certificates in case the builder hasn’t issue any within four months of handing over flats.”  Advocate Mahendra Sandhanshiv said the state housing department’s decision will stop developers from exploiting flat buyers. “As it is housing rates are very high. And then there is developer’s commission in exchange of NOC. “Even after selling a flat, a developer continues to reap monetary benefits by holding on to certificates,” he said. “Now that will stop.” Despite repeated attempts, Paras Gundecha, president of the Maharashtra Chamber of Housing Industry, could not be contacted. Source::::: DNA, 01-10-2012, p.01.  http://epaper.dnaindia.com/