Need sales permit before charging beyond booking fare for apartments: HDC

Housing Development Corporation (HDC) has said that although developers are allowed to charge a booking fee of MVR 50,000 from customers ahead of sale of apartments from residential buildings, they cannot charge any extra fees before seeking a sales permit from HDC.

A statement released by HDC yesterday said that mid-range and high-level residential complexes being built commercially can be sold as per an agreement between the developer and the customer. However, financial transactions involved in the sale of an apartment can only be carried forward based on an agreement signed between HDC and the developer.

Developers can charge a refundable booking fee not exceeding MVR 50,000 from customers before the apartments are ready for sale, HDC said. This fee will then be deducted from the total cost of the apartment.

Apartments can be placed on sale after twenty percent of the civil work on the structure is completed, and a permit is sought from HDC. Hence, no charges other than booking fees can be charged from customers before the sales permit is issued, the statement said.

HDC said that all residential buildings being developed in Hulhumale' besides Aséria project must comply with this policy. Aséria project, meanwhile, has been issued a permit to charge MVR 950,000 as booking fee from customers. The company said that apartments from Aséria can be bought through depositing payments to the escrow account created between HDC and the developer even before 20 percent of the civil work is completed.

Earlier, developers have charged large fees in addition to booking fees from customers and then failed to deliver the completed apartments on time. This has led to several complaints from customers. Some projects begun nearly six years ago still remain incomplete, with those having paid for apartments there even having held demonstrations in protest.