Additional Cost that the Builder/developer may ask while Buying a Flat
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While entering into a contract for buying a flat you will either agree on a lumpsum cost for the flat/house or per sq.ft. area of cost of the house. However, many payments as per the following might not be included in the agreed price and builder may ask separately for the same, over and above what you agreed for:
- Share capital of the society
- Stamp duty
- Registration fee
- Water supply, drainage connection charges payable to the local authority/Muncipal Corporation
- Advocate’s fee
- Deposit to be paid to the power supply electricity company
- Lumpsum maintenance fund in society’s name
- Transfer charges in case you are buying an old/existing house
- Service tax
- Please note that sometime these are genuine also because such funds remain as a deposit in the name of the buyer perpetually. The builder will be never be able to utilize it nor will have access to it.
Courtesy - 123rf
You have therefore to clarify all the above costs while negotiating with the builder. You also need to ascertain the facilities which the builder is going to provide.
Many times the builders provide very basic and minimum facilities/of average quality in the brochure and you might have to pay or additional charges
- Extra work done
- Materials of better quality or brand
Most of the time disputes arises out of this later on. Hence it is always advisable to have clarity in beginning itself.
These are few examples:
- Builder may give only 3’0” dado in the bathroom, toilet wall etc. and you might want to cover full upto 8’0” height-additional work.
- He may give you1 or 2 light points per room, while you may need many-additional light points.
- He may not provide standing kitchen platform at all the sanitary fixtures suggested may also be of lower brand and you want them to be of a better brand.
- All these have to be dealt properly and decided in details before buying.
With all above extra costs taken in to consideration during negotiation ask for the list of documents click below link to get the full list.