Thursday, June 17, 2010

Real Estate Brochure is a fairy tale, a dream, a concept, a wish list but no, not a "promise" or an "offer" !

"Often facilities offered in brochures by builders do not materialize..."

So what? We all know that the brochure of a real estate project is not a legal offering! Right?


My dear friend Ritu Goyal Harish, I have blogged her articles about the problems faced by the residents of the co-operative housing societies in Pune real estate market, has written an article on amenities in DNA. However, instead of writing to guide the home buyer, Ritu is trying to confuse the adventurous property buyer who joins hand with a builder to realize his dream.

Very conveniently, she has taken a popular stand about the amenities mentioned in the brochure but not actually offered in the project. Ritu says that amenities mentioned in the brochure are "promise" and if the builder doesn't give those amenities - doesn't fulfill his promise - the property buyer feels "cheated"!

When all of us who can read and write know well that every word printed in a brochure is just a wish and floor plans are not architects's drawings submitted to the corporation and elevations are artists' impressions.

We treat the brochure as a story book or a Fairy Tale. For a property buyer the brochure is nothing but builder's "wish" and certainly, not his "promise". Or a legal offering. This is clearly mentioned in the brochure and since we can read, we are completely aware about it. Right?

Builder presents it on the paper because he wants our interest free finance to develop his concept, implement his idea, convert his dream into reality. Those who book, invest bank's home loans in the project, also enjoy the adventure of being a part of the team, which against all odds, construct what they have collectively imagined.

That's why financial institutions never relate the disbursement of a home loan to the development of amenities or the completion of the entire project! Right?

My dear friend Ritu has ignored this reality. She doesn't acknowledge that a human being is a romantic and a dreamer. Like a typical representative of a consumption based economic culture, she thinks that we are nothing but "consumers"! What a false claim!

Related Story:

1) WEDNESDAY, JUNE 2, 2010

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24 comments:

  1. Dear Mr.Ravi
    I am yet to find a brochure that states clearly that the amenities mentioned are the builders "wish list". Properties today are marketed vociferously based on the "number" of amenities.
    You are wrong to state that home buyer invests the banks money - please show me one clause in any agreement - where even 5% of the risk is borne by a financial instituion who advances the money to the buyer.
    EMIs form the majority of a person's expenditure today and at times become bonds for the common man.
    People who buy homes are consumers and should have full right to demand what they have been promised.
    One becomes a part of an adventure of converting a dream to a reality when the risks and the spoils are also shared - which developer/builder has transperancy today and can claim that he is working for the buyers advantage.
    For us - the common people - the article that appeared in DNA was educative.

    ReplyDelete
  2. Ref: "I am yet to find a brochure that states clearly that the amenities mentioned are the builders "wish list".

    Dear friend, on every brochure you will find this note:

    The content of this brochure are purely conceptual and have no legal bindings on us. Developers reserve the right to amend the layout plans, number of floors & units, elevation, color scheme, specifications and amenities etc. without notice.

    ReplyDelete
  3. Ref: " Properties today are marketed vociferously based on the "number" of amenities."

    Yes, you are right. Amenities are not for the property buyers to enjoy. But for the builder to market the project at a higher rate. Mostly, number of amenities is an indication of less marketability of the project.

    ReplyDelete
  4. Ref: "where even 5% of the risk is borne by a financial instituion who advances the money to the buyer."

    Actually, financial institution doesn't advance the money to the property buyer.

    In India, financial institutions use property buyers to supply money to the real estate industry.

    In fact, the property buyers take a risk and responsibility to return the money with interest.

    ReplyDelete
  5. dear mr ravi
    this is the first time i find you on wrong side of the TRUTH. the builders cheat the innocent buyers through promising heaven in the project brochure and what the 95% of buyers get is CHEATED. the builders dreams and his projections have nothing to do with the buyer. if the brochure lists out the facilities then he must provide the facilities at any cost or face the law...the monies are paid by the buyers to the builder based on the brochure and its tall claims and once the builder has accepted the money he better provide the promised facilities. will a bank give loans based on dreams and projections and wave of the loans...??? infact the Bank should be made responsible to ensure that the facilities offered in the brochure are implimented before 75% of the loan amount is disbursed. brochure is the marketing strategy and though promised never implimented. majority of the builder community is cheats to the core...but then who is not a cheat amongst us...??? but the present issue is related to builders and Ritu is right in bringing it up and informing the people. i think you need to take it in the right spirit. there could be others too who could think well of the home buyers...???
    capt deepak

    ReplyDelete
  6. Ref: "People who buy homes are consumers and should have full right to demand what they have been promised."

    Yes. But mostly people don't buy a ready possession home. They buy a "concept".

    Builder don't manufacture a product. Builders give a service.

    "Brochure" is not a promise. Brochure is an idea.

    When you believe in a concept an put your money in it, you are not a consumer. You are also a developer - financier - partner!

    ReplyDelete
  7. Ref: "One becomes a part of an adventure of converting a dream to a reality when the risks and the spoils are also shared - "

    Yes. But look at you! You are not aware about your role and your rights!

    ReplyDelete
  8. Ref: "which developer / builder has transperancy today and can claim that he is working for the buyers advantage."

    Because, the property buyer, including you, is not aware that "he is the boss" and the builder is just a service provider!

    ReplyDelete
  9. Ref: "For us - the common people - the article that appeared in DNA was educative."

    - Educative! What education? Oh! It only belittles you! It says that the builder is all powerful and responsible. Whereas you are weak, victim and irresponsible! Are you? Is this an education?

    ReplyDelete
  10. take for example paranjape schemes in pune model colony. They are cheaters. They had promised a bunch of amenities there. Let alone the amenities, they have not even let a cooperative society be formed. They changed the contracts at the last moment and made it an apartment. So builder is free to use your building FSI elsewhere. Its plain cheating, and I am sure they will lose in the courts when the society takes them to the court, which is going to be very soon. Amenities were far from what was promised, told when booking the flats.

    ReplyDelete
  11. Read the note on the brochure of Kalpataru Spelendour, Wakad Pune:

    The above amenities are indicative, based on the construction of the building as is proposed at present and it is issued in good faith, subject to the approval of the authorities or in the interest of the continuing improvement and development of the Complex, the Promoters & Developers reserve the right to alter the layout, plans, specifications or features without prior notice or obligation. The details contained in the leaflets/brochures or any other printed material, are only indicative and artistic imagination, may not be exact or accurate, and the same does not form the basis or part of the offer or contract.

    ReplyDelete
  12. Note on the brochure of Horizons Wakad Pune:

    Disclaimer: This brochure is indicative. Furniture, amenities and fixtures shown may not be part of the actual offering. The developers reserve the right to amend the layouts, plans, number of floors, specifications, elevation, colour scheme, amenities, etc. without notice.

    ReplyDelete
  13. I totally agree with Ravi.Since we all know that the brochure & the amenities are only fiction, still we buy the house with builder knowing that we won't be getting all the amenities with the same quality mentioned in brochure.

    Also builder knows that buyer in Pune specially buy anything at any price whether they get anything mentioned in the brochure.
    Buyers are the only responsible for that because they knows it still they buys it.

    Even builders in Pune charges 8000-9000 for fringe location they will easily get buyer, so in today's market condition builder in Pune losing 50% of their profit.

    ReplyDelete
  14. Note on the brochure of Regency Meadows, Dhanori Pune:

    Note: All plans, drawings, amenities, facilities, etc. are subject to the approval of the respective authorities and would be changed if necessary. The discretion remains with the Regency Group. All renderings and maps are artist's conception and not actual deception of the buildings, walls, driveways or landscaping and Regency Group reserves the rights to make changes at any time, without notice or obligation, to the infromation contained in this brochure.

    ReplyDelete
  15. Note on the brochure of Palladium Homes, Dhnori Pune:

    Note: The brochure is purely conceptual and not a legal offering nor will be part of the agreement. Number of floors and number of units may be revised. All units are unfurnished. Furnishing shown on all floor plans are for illustrative purpose only. All dimensions are approximate and subject to construction variances. Developers reserve the rights to amend the layout plans, elevations, colour schemes, specifications and amenities etc.

    ReplyDelete
  16. Note on Aditya Garden City at Warje - adjoining Kothrud, Pune:

    Note: The contains of this brochure are purely conceptual and not a legal offering, nor will it be deemed to be part of any agreement. Nothing contained in this brochure will take precedence in the final agreement. Number of buildings, areas, flats / units, amenities, specifications, floors, roads, open space etc, may be revised. Promoters reserve the right to amend the layout, plans, elevations, designs, specifications, amenities etc. without any prior notice. High rise buildings are planned on area of future development.

    ReplyDelete
  17. Note on the brochure of Pudumjee G:Corp Developers' Greens at Thergaon , Wakad annexe, Pune:

    Note: The images and material contained in the Brochure are conceptual illustrations. Only the Actual Agreement (to be entered into between the flat purchaser and the developers) shall be binding on the Parties and the actual layouts, and specifications of the individual flat and any amenities to be provided, stated therein shall be final and conclusive of the agreement terms offered to the Purchaser by the Developer. The developer reserves all rights to make alterations, modifications, and changes, in the sanctioned plan, lay out specification, flats/units, elevations, designs, and amenities that will be made in the project.

    ReplyDelete
  18. Note on the brochure of Kool Homes:

    Disclaimer: The information contained herein is subject to change as may be approved & cannot form part of an offer contract.While every care has been taken in providing this information correctly, the owner / developer / partner can not be hold responsible for any inaccuracies. The visual reflected in the brochure need not necessarily form part of the actual building or areas within it.

    ReplyDelete
  19. On the brochure of Amit Astonia Royale, Ambegaon Pune:

    All drawings, amenities, facilities, etc. shown in this brochure are subject to change as per the approval from the respective authorities. The final discretion remains with the developers.

    ReplyDelete
  20. On the brochure of Suyog Leher, next to Sai Services, Kondhawa, Pune:

    Agreement to sale supersedes all the previous brochure and documents.
    Note: The contains of this brochure are purely conceptual and have no legal binding on us.
    Developers reserve the right to amend the layout plans, number of floors, elevation and amenities without prior notice or obligation.

    ReplyDelete
  21. On the brochure of Aloma County at Aundh, Pune:

    Note: The contains of this brochure are purely conceptual and not a legal offering nor will be a part of the agreement. Number of floors and unites may be revised. Developers reserve the right to amend the layout, position of terraces, plans, elevations, specifications, amenities, designs, etc. without prior notice.

    ReplyDelete
  22. On the brochure of Tata Inora Park, Undri, near Pune:

    This brochure is purely conceptual and not a legal offering. The company reserves the right to add, delete, or alter any details and /or specifications.

    ReplyDelete
  23. On the brochure of Rohan Leher at Baner, Pune:

    Disclaimer: The contains of this broucher are purely conceptual and have no legal binding on Rohan Builders. The furniture shown in the plans does not form the part of the actual unit. The builder reserves the right to amend the contents, plans and specification without prior notice. Note: The Saleable built-up areas shown in the brochure are calculated as: Actual built-up + proportionate common area.

    ReplyDelete
  24. World is working on disclaimers now. Not just real estate, everywhere. Small asterisk is part of life now :) But this won't work so long now I think. At some point, ethics also plays a role. Agree, builders are providing service but it would good if they provide better service. Good for property buyers and good for developers.

    ReplyDelete