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Not in India, developers can sell before building but the money is in an escrow and released as the construction progresses. Also penalties and interest on any
by eklavya 3y ago
Not in India, developers can sell before building but the money is in an escrow and released as the construction progresses. Also penalties and interest on any delays. I don't think selling unbuilt buildings is the bad thing, it's having no regulations or protections alongside that.
https://en.m.wikipedia.org/wiki/Real_Estate_(Regulation_and_Development)_Act,_2016 https://en.m.wikipedia.org/wiki/Real_Estate_(Regulation_and_...
- rfoo 3y agoChina has > the money is in an escrow and released as the construction progresses. too. The problem is it doesn't work: the fund release schedule can't be perfectly aligned with each stage of the constitution on a cost basis. There's a large amount of unfinished buildings (rather than not started at all) at a certain stage - it's the point when the_amount_of_fund_released - the_construction_cost_so_far is maxed. I like the USA solution more - no mortgage for unfinished buildings. Developers can still sell it, but good luck.