AWARENESS SERIES – EXERCISE EXTRA CAUTION WHEN YOU DEAL IN PROPERTY

M K Gupta

If you are going to deal in property especially in Dwarka, please exercise extra caution in selecting an honest dealer and before making any advance, check the reputation of dealer and financer (if any). This advice is on the basis of the experience gained by a purchaser named Sumit. (Name changed on request). Few dealers and Financers in Dwarka are tarnishing the image of the whole community dealing in property.

Sumit selected a flat for purchase in Sector 6 through a property dealer operating from Agarwal Plaza, Sector 12, Dwarka. The two-brother running the officer introduced him with Financer having ISO 9001-2000 certificate and running his officer from Palam Extension, Sector 7 in Dwarka. Now, it has become difficult to deal in property without a financer in Dwarka. Though this financer claimed that he is recognized for fair deals but at the time of paying the token amount in the last week of June 09. He issued the receipt for the same but neither the dealer nor this financer told the buyer that the flat is mortgaged to a private Bank at Karol Bagh. Rather contradictory to this fact, it was dishonestly mentioned on the receipt that the flat is free from any mortgage etc. After few days, he informed that the formal Financer for this flat is someone else who has entered with an agreement with the owner and he has his office in Sector 10 market. This newly introduced financer has not only shown stars to the purchaser but Venus also during the broad daylight. After taking the further amount to over 10 per cent of the deal, he informed the buyer that the flat is mortgaged to a bank as owner has taken a loan on this and therefore the purchaser will have to pay more within the next 10-15 days for clearing this loan. Fallen in to the net in good faith, purchaser had to pay close to 40 per cent of the total cost by Sept. 09 under compulsion to save the advance paid. Surprisingly and dishonestly, this newly inducted financer singed an agreement earlier that declared that the flat is free from any sort of mortgage. The purchaser felt duped but could not do anything, however, now exercising some extra care, he had given an advt. in the paper inviting objections from the public for this deal.

Though these two so-called financers had taken considerable amount from the buyer, they cleared the loan taken by the owner from the Bank by the end of Dec. 09. After that, the NOC and original papers of the flat released by the Bank were taken from the owner by the newly introduced financer. Because of the delay in the execution of papers on flimsy grounds, purchaser had changed the dealer in August-September by engaging a reputed one having his officer at Sector 11 market. After facing all the aforesaid harassment, when it was informed to these dealer and financers that the purchaser is contemplating police and legal action and informed of this deceiving act to some other brokers also, apart from threatening to give the story to the Dwarka Forum and the media, they were compelled to get the sale deed executed on 19th January this year.

Not only this, these dealers and financers tried to overawe the purchaser after the release of papers from the bank by trying to increase the negotiated price on the pretest that the rates in seven months have gone up but due to resolute attitude of the purchaser, they failed in their attempt. Had this not happened, the matter might have still lingered on. Due to the dishonest act and delay in execution of papers, the purchaser has to pay the interest on the money borrowed for advance payment and hefty rent for the flat wherein he was residing at the time of entering the deal. See the courage of the ousted dealer that after the execution of the papers, the ousted dealer asked for his brokerage, which the purchased had paid to the newly engaged broker who was instrumental in the completion of this deal.

The owner of the flat has also rued as he was kept on tenterhook for seven months altogether.

The Financers promised that the flat shall be ready to move and the work for this was going-on at the time of entering the deal but shortly after the advance was paid, they stopped the ongoing work. The purchaser has to undertake the completion of the left out work on his cost and incurred about one lakh from his pocket.

These Financers also misrepresented the fact that the house tax is paid up to date but the receipt has been mislaid. Also, that they have paid Rs. 25,000 as entry fee to the Management of Society for which no receipt had been issued but by now alerted purchaser cross-checked these facts and found them erroneous and thus saved the amount not due from going to the pockets of deceitful financers. Now, it has come to notice that the original broker having his officer at sector 12 has downed his shutters.

It is learnt that these financers have also used same tactics to harass another buyer who bought a flat in Apna Villa, Sector 10 about two-year back. After getting the advance from this buyer too, these financers were not forthcoming for the execution of sale-deed. When a relative of the buyer who was a senior officer in the Home Ministry, intervened in the matter, these financers were forced the complete the deal.

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