GPL - Flat Buyer Agreement

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>> Sandeep Gupta (GPL) and I spent about 90 mins yesterday (19th july) at his office and he actually opened up this blog from his "favourites links" :) and we went thru each of the clauses I listed below. In the next couple of days I will update the blog with things I found out in our discussion. Thanks

Here are some things that stick out to me in the flat buyer agreement and may mean significant additional payment...

Clause 4(a) - Electricity charges - Deposit for bulk electricity and there is no mention of how much KVA will be allocated to each flat

Clause 5 - Aren't luxurious apartments expected to come with fire-fighting facility - I haven't seen these being mentioned in many other Flat buyer agreements?

Clause 6 - I am not sure I understand it this means payment for purchase and installation of genset for power backup too... eden heights was always promoted as a apartment that will come with 24x7 100% power backup.

Clause 7 - LPG - while this is good to have and I think I did hear mention of this at the time of registration.

Clause 10 - 20% is the earnest money??? WOW this is a lot!!

Clause 13 (a) - "Flat allotee may obtain finance from any financial institution..." there doesn't seem to be many options - considering that none of the pvt sector banks are funding this project yet

Clause 19 (a) - 3.5 years form the date of commencement of construction of the tower - THIS IS CRAZY...I cant imagine any tower construction begining by Jan 09 - add 3.5 yrs to that 2013 looks like the best case scenario for possession. Whereas we all have been told 3 years since the time of registration or booking i.e NOV 2007..

Clause 20 - Buyer compensation Rs 2 psqft - is perhaps the lowest any builder offered- consider thiis we will be entitled to Rs 2psqft in 2013 i.e Rs 4000 per month as compensation for delay - imagine the rent you will be paying in 2013 if you are paying 15000 today?


pls feel free to add other things you observed...

Sample Flat / PLC / Market sentiments & Eden Heights

Sample Flat
Probably it was my jet lag that was making me act a little paranoid but despite trying to catch up on the time difference I decided navigate the poor roads of Gurgaon to the non descript Badshapur village, to the GPL site. I have to say that I was a little disappointed with the progress of sample flat...it didn't look much different to me then what I had seen it a few months back (just that the roof was coming and the exterior walls had a cement coating to it)...so anyone who tells you that the Sample flat will be ready in July is NOT giving you the accurate pics. I don't think it'll be ready until end of August or early Sep. Which makes me wonder if the project is running behind schedule ... nonetheess good thing is that the work is progress
PLC
A lot has been said about PLC and looks like we all realize that it's probably a way for builders to make more money. I was amused that CORNER FACING had a PLC to it...soon we will probably have road facing, mountain facing - even if it is 10 mile away :), Neighbor flat facing haha :)...sky is the limit - PLC really made sense if it was applicable to pool facing or sea facing (in Mumbai)..., I am not sure what builders will offer us If we ask them for a flat without PLC :0).
EDC/IDC
my letter says that EDC/IDC is 200psft - not sure if it is more or less? Any thoughts??
Finally - Market sentiments
Given that the market is seeing a severe downtrend (real estate bigges like Unitech, DLF etc have lost close to 50% in market cap...)...(OMG!!) and inflation touching 12% (WTH!!! ..which is unimaginable) and home loans (12% - 14% - what the f***)...makes me wonder what impact all of this is having on GPL promoters...and I hope that they don't compromize on the quality to battle the market factors and leave the customers (us!!) short-changed!!

Anyway here are some pics of 4th July 08