State protects home buyers | india | Hindustan Times
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State protects home buyers

india Updated: Sep 16, 2010 03:13 IST
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Developers will now be forced to fix prices of houses on their carpet area.The state government has decided to issue a joint directive to local bodies to ensure building plans are approved only after a developer mentions the carpet area and useable area of an apartment separately.

The housing and urban development departments will issue the directives by next week, after receiving instructions from Chief Minister Ashok Chavan on Wednesday.

Chavan, during a meeting to discuss the Ashok Chavanvision document, said despite an amendment to existing laws, flats were not being sold on carpet area basis.

The state government’s housing policy of 2008 had said apartment should be sold on carpet area basis only. The state had also amended the Maharashtra Ownership of Flats Act to ensure builders price flats only on the carpet area.
Most builders ignore this rule choosing to maximise profits by selling the apartment on built-up or super built-up area.
Chavan has now asked officials to ensure consumers are not cheated.

“Local bodies, including the Brihanmumbai Municipal Corporation, will soon implement a regulation according to which developers are supposed to mention the actual carpet area and useable area separately while getting the three certificates -- intimation of disapproval, occupation certificate and building completion certificate,’’ said a senior official from the urban development department requesting anonymity because he is not authorised to speak to the media.
The local body will also check the actual sale agreements, which have to mention the actual carpet area and super built-up area separately, before issuing the occupation certificate to the developer.

“Sub-registrars will be told to not register sale deeds unless the carpet area of the flat is mentioned and a similar check will now be introduced at the BMC level,’’ said minister of state for housing, Sachin Ahir, who attended Wednesday’s meeting.

This move is to ensure transparency in sale of apartments and empower buyers to pay only for carpet area of a flat. Chavan has also set up a cell under the housing department to implement the department’s decisions on land audit and affordable housing.