Real estate: forget the cheats, even the small print is a killer

You see an advertisement in the newspaper for a new residential project. The visual appeals to you, provoking you to read the details. The ad promises 2,3 and 4 BHK luxury apartments, exclusive duplex and triplex units with private pools, 100,000 sq ft of dedicated recreational space and an ’enhanced living experience for you and your family.'

Sounds good? Sounds too good to be true?

Well, it just might be too good to be true - and the developer tells you so.

In the fine print at the bottom of the advertisement, there’s a disclaimer tucked away. “The developers reserve the right to change plans, amenities and specifications without prior notice or obligations,” says the disclaimer.

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To get a better idea of what we are saying, have a look at the ad below:

[caption id=“attachment_130522” align=“alignleft” width=“380” caption=“In the fine print at the bottom of the advertisement, there’s a disclaimer tucked away.”]  [/caption]

The ad from Ajmera Cityscapes is only illustrative; they are by no means the only ones to be using the fine print to get out of their commitments, should the news arise.

What this implies is that the developer could, for example, not deliver the 100,000 square feet of dedicated recreational space and the consumer could do nothing about it.

Advertisements such as these are good enough reasons for the government of Maharashtra to propose the Real Estate (Regulation Of Development) Act. “The proposed act seeks to protect the interests of the consumer by clearly defining the role of the promoter, by checking his or her antecedents and legal status, by checking encumbrances on the title of the land being developed, specific details of what is the extent of common areas, clarity on built up and super built-up areas, amongst other details,” Firstpost had written when the announcement was made.

The proposed act has hit roadblocks, with stiff resistance by real estate developer and promoters. Since this is a proposed new law, and, therefore, will take discussions and time to table and pass, the Maharashttra government has found a shortcut - amend an existing law, rather than wait for the new one. “Taking note of a growing number of complaints against crooked builders, the state government has decided to bring in amendments to the Maharashtra Ownership Flats Act that will ensure heavier fines and jail terms for rogue developers,” reports Mumbai Mirror.

Builders shouldn’t complain too much with the government finding a loophole and a shortcut - after all, isn’t that what they themselves have been doing?

Till the amendment - or the law - comes through, though, consumers might do themselves a big favour by looking for, and reading, the fine print.

Or they might find that a balcony they’ve been promised wasn’t promised at all…