“Study and Analysis of the Information Gap Between Real

Estate Developer and Customer”

SUMMER PROJECT
2009
Submitted for the partial fulfillment of the requirement for the
award
Of
POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY
HARIOM SHAHI
Roll. No. - 8022

UNDER THE GUIDANCE OF

Internal Guide: Dr. Sidhart varma
External Guide: Mr. Ajay Raj Singh

Department of management
INSTITUTE OF MANAGEMENT EDUCATION, SHAHIBABAD
 DECLARATION

I hereby declare that the project report entitled “ Study and Analysis of Information
Gap Between Real Estate Developer And Customer” submitted for the Post
Graduate Diploma In Management is my original work and the project report has
not formed the basis for award of any degree, diploma, associate ship or other
similar titles.

Date:
Place: Signature

ACKNOWLEDGEMENT

I take this opportunity to express my sense of indebtness and sincere gratitude to all those who
helped me in completing this project. The successful task would be incomplete without the
mention of the people whose constant guidance and encouragement crown all efforts with
success.

First of all I would like to convey my heart felt thanks to Dr. Sidhart Verma (Internal Guide,
Faculty IME) for his constant suggestion which have resulted in successful completion of project

I would like to express my sincere gratitude to Mr. SAMI KHAN (C.O.O.) for giving me the
opportunity to work and learn with APEKSHA GROUP .I would also like to thank Mr. UDYAN
GIRI (Manager) and Mr. AJAY RAJ SINGH (External Guide, Deputy Manager) who extended
to me all the support and cooperation I required during working in the field in various areas from
time to time.

I would also like to extend my heartiest thanks to Mis Anjali Chauhan (Dupty Manager), Mr.
Subham Rastogi (Dupty Manager), Mis Pallvi Datta (Dupty Manager), Mis Sudeep Khurana
(Dupty Manager) ,without their support I could not complete this project.

The individual and personal efforts of everyone concerned were memorable and I am once again
sincerely thankful to the whole team of APEKSHA GROUP and IME for their cooperation and
providing me the required information and resources and helping me throughout for the
successful completion of this project.
 HARIOM SHAHI

TABLE OF CONTENTS

CHAPTER 1: PAGE NO.

1. INTRODUCTION OF THE SUBJECT

1.1 INTRODUCTION TO THEORETICAL VIEW
1.2 REVIEW OF LITERATUR

CHAPTER 2:

2. INTRODUCTION TO THE COMPANY

2.1 COMPANY PROFILE

2.2 SERVICES OF APEKSA GROUP

2.3 APEKSHA GROUP’S CONCEPT TRUSTED PROPERTY

2.4 REQUIREMENT & NEED OF TRUSTED PROPERTY

2.5 OBJECTIVE OF TRUSTED PEOPERTY

2.6 FUTURE PROSPECTS OF APEKSHA GROUP

CHAPTR 3:

3. RESEARCH METHODLOGY

3.1 OBJECTIVE OF THE STUDY

3.2 SCOPE OF THE STUDY

3.3 DATA COLLECTION METTHOD

3.4 SAMPLE DESIGN

 3.5 DATA PROCESSING

CHAPTER 4:

4. DATA ANALYSIS AND INTERPRETATION

CHAPTER 5:

5. FINDINGA AND CONCLUSION

5.1 FINDINGS

5.2 CONCLUSIONS

CHAPTER 6:

6. RECOMMENDATION

CHAPTER 7:

7. LIMITATIONS

BIBLOGRAPHY

ANNEXURE
 EXECUTIVE SUMMARY

I started my project on 4th may 2009 in Apeksha Group (A Real Estate Consultancy
Company) and was asked to study and analysis the information gap between real estate
developer and customer.

I was asked to collect the information related to real estate and the information needed to
buy or search property from the educated people who can really have experience of
purchasing property or want to buy house or property. For that I target to meet with
people who are doing job at a top level in an organization. I collected data from Delhi and
NCR region.

First of all I prepared the questionnaire according to the job given to me. The objectives
of my questionnaire are as follows –

 Find the reason of information gap that exists between real estate developer and
customer in order to get an idea about the transparency in the real estate sector.
 To examine, evaluate and document the problematic situations arising between the
real estate developer and customer.
 Determine Propose solutions or remedial measures to bridge the information gap
between real estate developer and customer.
A secondary objective was to gather information about what customers want from
real estate developer and Regulatory body working in Real estate sector.

I started my survey from PRAGATI MAIDAN New Delhi. I collected the data of 317
people which helps me to find out various reasons of information gap between real estate
developer and customers, few are as follows -

 People are not aware about the process of buying a house /property.
 People are not aware about the legal and technical document needed to check
while buying or searching house/property.
 Whatever information builder provide to customer in there broachers are condition
based and customer does not understand it in same way.
 A lot of player (builder) in the market so that checking their authenticity is
difficult.
  Builders not selling their project directly to END User.

1. INTRODUCTION TO THE SUBJECT :

1.1 Real Estate Industry in India:

The size of the real estate industry in India is estimated by FICCI, to be around
US$ 12 billion. This figure is growing at a pace of 30% for the last few years.
Almost 80 % of real estate developed in India, is residential space and the rest
comprise office, shopping malls, hotels and hospitals. This double-digit growth is
mainly attributed to the off shoring business, including high-end technology
consulting, call centres and software programming houses which in 2003-04, is
estimated to have accounted for more than 10 million square feet of real estate
development. This is the ideal time to invest in the country as policy makers have
begun to emphasize on developing adequate infrastructure for the country. Real
estate companies would also do well to maximize their own performance and
operational efficiency.

The future of the real estate sector in India is going to be guided by two important
factors, namely suitable amendments in the Foreign Direct Investment (FDI)
guidelines in townships, housing, built-up infrastructure and construction –
development projects as well as abolition of Service Tax on the construction
industry especially the housing sector. Conversely, if the abolition per se is not
possible then drastic modifications in the existing Service Tax norms is the need of
the hour. This Sector is already overburdened with taxes; any further imposition of
taxes in any form would adversely affect the growth of this sector of the economy.

The importance of the Real Estate sector, as an engine of the nation’s growth, can
be gauged from the fact that it is the second largest employer next only to
agriculture and its size is close to US $ 12 billion and grows at about 30% per
annum. Five per cent of the country’s GDP is contributed by the housing sector. In
the next three or four or five years this contribution to the GDP is expected to rise
to 6%. The Real Estate Industry has significant linkages with several other sectors
of the economy and over 250 associated industries. One Rupee invested in this
sector results in 78 paise being added to the GDP of the State. A unit increase in
expenditure in this sector has a multiplier effect and the capacity to generate
income as high as five times. If the economy grows at the rate of 10% the housing
sector has the capacity to grow at 14% and generate 3.2 million new jobs over a
decade.

Furthermore, this sector has witnessed a spurt in demand not just in residential
property but also in commercial property. A fast growing area is the I.T. and I.T.-
enabled services along with the BPO boom. Estimates worked out show that 42
million sq. ft. of space will be required every year till 2008, only in I.T. and I.T.-
enabled services especially in the cities like Bangalore, Chennai, Hyderabad and
Pune, which is also now gradually shifting to North India.

To achieve the much desired growth and development in the Real Estate Segment,
FICCI would like to submit the following 10 points for consideration:
� Infrastructure Status to Housing: Infrastructure status should be provided to
housing sector. This will enable easier access to low cost institutional funds as also
allow the sector to tap long term funds.

� Real Estate Mutual Funds: The Government should consider setting up of

Real Estate Mutual Funds/ Investment Trusts to provide the much needed support
to the cash starved housing sector, similar to the structures adopted for Estate
Mutual Funds/ Investment Trusts in developed real estate markets such as, USA,
Singapore. Hong Kong, etc. Real Estate Mutual Funds/ Investment Trusts would
be an efficient mode for providing equity financing as against debt, which is
currently the norm for financing real estate developments in India.

� Stamp Duty: In some States the Stamp Duty is as high as 14- 15 % of the value
of the transaction. Astonishingly in the Indian context, not only are the rates high,
but also the levy of Stamp Duty is applicable in every subsequent transaction, be it
the initial transfer purchase of land or on further sale of the same land after
development or any other succeeding transaction. Opportunely some states have
brought the Stamp Duty down to between 6-8 %, this should ideally be further
brought down to 2-3 % and made uniformly applicable across all states. However,
if the above suggestion is not acceptable then if stamp duty has already been paid
on one transaction, there should be a mechanism in the law, whereby there is a
provision for concession or a system of credit for any subsequent transactions. This
would avoid the resultant cascading effect of Stamp Duty, thereby reducing the
cost of a property. The concept of credit for taxes paid on subsequent transactions
already exists in other statutes such as CENVAT, VAT, Minimum Alternate Tax
(MAT), etc.
� Public Private Partnership: There is a need to evolve a regulatory framework
that encourages participation of the private sector in bringing technical and
managerial expertise in formulating and delivery of basic amenities like water,
sanitation, sewerage, transport and electricity.

� Archaic Laws: Availability of land for housing projects has been constrained
by a variety of laws like the Rent Control Act and Urban Land Ceiling and
Regulation Act, which must be repealed in all the States. A necessary legal and
policy framework has to be put in place to restrict growth of slums and at the same
time to re-develop the slums into hygienic and livable.

� Foreclosure Laws: The existing foreclosure laws are cumbersome as well as

time consuming and make it practically impossible for Housing Finance
Institutions (HFIs) to repossess a dwelling unit financed. HFIs are reluctant to take
risk and continue to land primarily on salaried urban borrowers. Amendment of
(National Housing Board) NHB Act has already been initiated. The
implementation process needs to be expedited to bring in the required changes.

� Environmental Impact Assessment Notification: The notification specifies

that no construction activity to be taken up, inspite of the approval of plans by the
Competent Authority, till the environmental clearance has been sought. In cases
where approval has already been granted it is suggested that construction activities
should be allowed. In the intervening period the builder / developer can obtain the
environmental clearance certificate. In the case of the environmental clearance
certificate being denied then appropriate action if necessary and warranted can be
taken against the developer / builder and builder be given time to get clearance
before he applies for completion certificate, otherwise the completion certificate
will not be given Furthermore, in the case of future proposed projects the
environmental clearances should be taken by the States themselves or by the
planning bodies and not b individual builders.

� Land Acquisition: The Land Acquisition Act of 1894, still, to a large extent,
governs the procurement of raw land. With the changing investment scenario it has
become necessary to review the existing law, in order to ensure that private
developers and colonizers procure the land directly from farmers and land owners
without putting undue financial burden on State/ Central Governments on land
acquisition for public purposes. Today, a builder is governed by “Agriculture Land
Ceiling Act” even after the land have been urbanized in the zonal plans / master
plans. This makes builders to create several companies in order to circumvent the
archaic laws. It is submitted that once the land has been urbanized and
incorporated in the master plan, then Agriculture Land Ceiling Act should not
apply and builders should be permitted to acquire lands as per their requirements,
for the development of townships.

� Foreign Direct Investment (FDI): Suitable modifications in the FDI

guidelines are required, particularly in repatriation of funds, clarification on the
basic definition of “built-up area”, streamlining of Clearance procedures as well as
the opening up of the Retail Segment to FDI. This aspect has been discussed in
detail in Section II of this paper.

� Service Tax: Service tax in relation to construction of residential complexes

having more than 12 houses have been proposed to be introduced as a new service.
However, no rationale has been provided for exclusion of services in relation to
construction of residential bungalows, which may not form part of ‘residential
complexes’.

SUBJECT MATTER OF THE PROJECT :

 What is the meaning of information gap between real estate developer

and customer.

An Information gap is a situation in which there is a communication

between two or more people, where they are missing the information they
need to complete a task and they need to talk to each other to find it . Like
this there are many situations in real estate, in which the information
customer wants builders do not provide and what builders provide customers
do not required or do not understand it in same way.

 Why study of information gap between real estate developer and

customer.

Real estate sector is a vital section of Indian market structure. Since a lot of
opportunities are available in the real estate sector so there are a lot of
companies and Project developer are operating in Indian real estate sector. Then
consumer satisfaction becomes key element of success of real estate developer.
 So after finding the reason of information gap we can provide maximum
satisfaction to customer.

 Why I choose Apeksha Group.

The work culture at APEKSHA GROUP is based on the fundamental belief

that employees are its most important asset. Respect and genuine concern for
each employee in the organization is the basic principle on which the
organization functions. They believe that by giving mutual respect,
recognition, trust, open communication, transparency and opportunities for
growth, employees will perform to their fullest potential and will be sincere,
dedicated and committed to their jobs. APEKSHA GROUP offers to their
employees a wide range of benefits to make work and life more enjoyable,
This includes monetary rewards in recognition of excellent work.
1.2 REVIEW OF LITERATURE:

NEED OF REGULATORY BODY IN REAL ESTATE

Now a day’s many people are cheated by builder, and since builder are big gun so
very few people get justices against builder. It Raises a question - Does our
constitution really needs the law. NO!! We already have unlawful Activities
(Prevention) Act 1967 and TADA in 1987.

Similarly we have laws but........ Same story. Nobody cares/dares it. May I ask you
a question - Do we need RBI or SEBI. How many people (individuals) participate
in investing or reaping money from shares/bonds/MF, etc. may be 40% maximum.
It’s a different issue that 70% of the people get affected due to share market result.

Similarly in today's real estate may be 50% of Indians get affected directly but
90% indirectly. You know the real cause of recession. It’s again the same real-
estate sector in US - and of course some mortgage problem.

Actually we need to understand why a regulator is needed and where not. Three
basic needs - Food, Clothing, Property - Roti, Kapda and Maakan. Now everybody
knows Regulatory body in Food and Beverage is really important (not in India - so
Pepsi and Coke are doing business - poor us, 1st world countries do have). We
don't have as such a proper regulatory authority for Clothing (as it is cheaper here -
look at any 1st world country, they have). About home....... a dream of every man -
whether rich/poor black/fair.... it takes whole life to get a home.

65% of Indians have their own home at age of 62. Comparing with a shirt or a
burger........... This is really BIG. It doesn't mean that earlier two is less
important....... what I mean to say is that MAKAAN is no lesser important. You
invest once and that’s huge.

Govt. advertises about checking food quality, prices of a commodity, and problems
with auto, electrical equipments, and credit cards and........... But I haven't seen this
effort to educate people about real-estate aggressively.

What to do if you are at problem with your builder, what is map approval, how can
a common man get it, what is mutation, why is it important, - really more
important to any man than running after some credit card inflated bill or some
inflated charges taken by Big Bazaar - sort of problems. Money market is needed
to be regulated because its the backbone of our economic system.

The amount of business real-estate industry is generating can't be no-longer

ignored. After 2001, probably everyman directly or indirectly is associated with
real-estate sector (see the investments in Infrastructure bonds only). After IT and
ITES industry, real-estate sector comes next in terms of people employed. The
value of stake holders in this sector is no lesser than 90%.

The involment of more than 50% of the population (public representatives) makes
a govt. Why not a industry. People within (i.e. employees) and outside (investors,
buyers, share-holders) if moderated by a central agency like RBI (I name it RERBI
- Real Estate Regulatory Body of India), then life for everybody in INDIA might
be safer.
Fallout of real estate boom:

The boom in the real estate saw emergence of many builders, who played upon the
emotional side of human nature to own one's own dream house, commercial space
etc. Besides the ever rising prices of the houses/flats etc attracted many to invest in
the real estate with a hope that their money will give the best returns if invested in
the real estate sector. The interest of the consumer in the real estate lead to heavy
bookings of the buildings, innovation of the concept of pre-launch bookings, the
flats/commercial space were sold while at the drawing board stage. The consumer
never bothered to check the credentials of the builder, sanctions by the competent
offices etc. Instead the consumers were led by alluring advertisements issued by
the builders, promising delivery of possession of constructed building/flat within
the stipulated time. The builders promised refund of money immediately on
cancellation, some of them also promised assured returns by way of rent.

After the bubble has burst, needless to say, the promises of the builders have gone
for six. The purchaser/consumers have paid the entire sale price/major
consideration and they are under debt of bank/financial institutions, savings have
evaporated and there is no sight of completed building. The promising builder has
vanished or has started avoiding calls; request for refunds, delivery of possession is
unheeded. Instead some builders have the audacity to demand more money on
account of alleged escalation cost with a remote possibility of possession being
handed over to them. What do poor and harassed consumers do in such
circumstances.

I need to emphasize consumer is not helpless and should not allow the builder to
run over him. He should fight for his right, the law of land supports him in this
regard. The Consumer Protection Act, 1986, will come to the rescue of such erring
builders and will force the builders to pay compensation to the consumer, hand
over the possession of the flat booked/alternative flat in the same locality and will
ask to builder to bear the cost of escalation, if any, on account of rise in price of
constructing a building. The purchaser/buyer is a consumer within the meaning of
the above mentioned Act and failure of the builder to hold on to the promise made
at the time of booking in delivering possession etc would constitute deficiency of
service.
A cheated customer can lodge a complaint with the consumer forums pointing out
the deficiency of services by the builder. A consumer court is divided into three
forums namely, district forum, state commission and National Commission. Where
the value of the property is less than twenty lakhs, the complaint will be filed in the
District Forum. Where the value of the property is more than twenty lakhs but less
than One Crore the complaint will be filed before the State Commission and where
the value of the property is in excess of Rs. One Crore the complaint will have to
be filed in the National Commission.

In the matter of DLF Universal Ltd Vs Brig (Retd) Kamal Sood, the National
Commission, reported as MANU/CF/0069/2007 was faced with a situation,
wherein the consumer was led by the advertisement of the builder of delivery
within stipulated time and consequently on the failure to deliver, the builder
contended that government permissions, such as approval of zoning plan, layout
plan and schematic building plan were not given, thus the delay in construction
should not be a ground for grant of compensation to the consumer. The consumer
was further burdened with the escalation cost due to such delay. The Hon'ble
National Commission observed that it is unfair trade practice on the part of the
builder to collect money from the prospective buyers without obtaining the
required permissions such as zoning plan, layout plan etc. It was further held that it
is the duty of the builder to obtain the requisite permissions or sanctions for
construction etc in the first instance, and thereafter recover the consideration
money from the purchaser of the flat/buildings. The National Commission further
observed that if there is any express promise that the premises would be delivered
within the stipulated time and if it is not done so, escalation cost is required to be
borne by the builder.

In another matter titled as Veena Khanna Vs Ansal Properties and Industries

limited, reported as III (2007) CPJ 185(NC), the National Commission set aside an
order of the State Commission, wherein the builder was directed to refund the
money to the consumer along with the interest @ 13%. In the alternative, it was
directed that if the builder chooses to hand over the possession of the flat, the order
of refund with interest will not come in operation. The builder taking advantage of
the order refunded the money, because of the rise in the prices of the immovable
properties. The National Commission observed that refund of money with interest
at bank rate does not mean that the complainant is adequately compensated for
delay in construction of flat by the builder and not delivering the possession of the
flat. It was noted that because of the delay in construction and delay in deciding the
matter it is practically impossible for a consumer to purchase a flat at the market
price.

It was held that it was the duty of the state commission to direct the builder to
deliver the possession of the same flat or flat of similar size to the consumer with
compensation for delay in delivering the possession. Or in any circumstances,
adequate compensation ought to have been given so that the complaint could
purchase a new flat of the same size at the prevailing market rate. Mere payment of
interest is not an adequate compensation.

Complete information of how to buy a home or property:

1. How do I buy a house?

Be an informed consumer; buying a house is one of the most complicated

and expensive purchases you will ever make. As with most other things,
you get what you pay for. Look at and compare many houses in different
areas. Once you have seen something you like, assess its location. How far
will you have to commute? What is the traffic like? How does the
neighborhood look? What services are available? How good are the local
schools? Will you be able to get your children into them? What is the crime
rate in the area, and what types of crimes have occurred in the past couple
of years? Visit the home on multiple occasions and at different times of the
day. Remember: location, location, location. It's one of the biggest factors
in setting the price of the home.

Before you make a written offer, know exactly what you are buying and
what the costs will be after you own it. For example, in addition to the
monthly principal and interest payments that you will have to finance the
purchase of your home, you will need to budget for utility bills, property
taxes, insurance and maintenance costs. If you buy a home that has a
homeowner's association, you will also have to pay association fees. Some
homes have special assessments in addition to the regular property taxes.
Make sure that you ask the seller for copies of the past years" bills for these
services, and that you inquire as to whether there are any assessments
scheduled to be placed on the property in the future.

Also, check the condition of the house and any appliances, window
coverings and other items that you want included in the sale. Consider
purchasing a home warranty. For a minimum fee, the home warranty
company will insure that the house and the appliances are in working
condition. Many companies will provide coverage for washers, dryers,
pools and pool equipment, air conditioning, and some roof repairs. Your
agent or escrow holder can provide you with information on these policies.

2. Do I need a real estate agent or an attorney?

An experienced local real estate agent can assist you in finding a home that
meets your particular needs. He or she will also have information about the
home and area that an outsider would never find just by looking at the
particular home. Most homes are listed for sale by a real estate broker who
is referred to as the seller's agent. The seller's agent represents the seller.
The agent who helps you find the home is called the buyer's agent. Usually
you will not have to pay your agent a fee for the time and energy he or she
spends in finding the home and assisting you in closing the sale. The
buyer's agent's fee will be paid by the seller when you complete the
purchase of the home.

Your real estate agent will also assist you in negotiating the price, learning
about the community, obtaining a loan, inspecting the home, and in closing
the escrow. In some instances, a real estate agent can represent both the
buyer and the seller. This is referred to as a dual agency. This must be
disclosed to you before you make an offer. It is advised that you proceed
carefully in this situation, since your agent will be working for both the
seller and you at the same time.

If you are not sure that you understand all of your rights and
responsibilities, it is advisable to see an attorney who is experienced in the
purchase of residential real estate. An attorney can help you with legal and
tax questions that come up during the purchase of the home, and can assist
you in reviewing all of the documents and reports that will be provided to
you in the process of purchasing the home. For more information on how
to locate a qualified attorney, order a free copy of the State Bar pamphlet
How Can I Find and Hire the Right Lawyer? To find out how to order a
free copy of this pamphlet and other State Bar consumer education
pamphlets, call 415-538-2280. Or visit the State Bar's web
site(www.calbar.ca.gov) where you'll find the bar's consumer education
pamphlets, as well as information on ordering them. The pamphlets also
can be ordered in bulk.

3. What information must the seller provide me?

In most cases, when you are preparing to buy a home, the seller must
provide you with a Real Estate Transfer Disclosure Statement. This is a
pre-printed form that lists many features or conditions about the home, the
land, and the area where the home is located. The seller must list on this
form any possible problems he or she is aware of that might affect your
willingness to purchase the home. This includes, for example, easements,
rights of others to control how you use the property, environmental
problems, nonfunctioning equipment, zoning and building violations, and
special assessments. The seller's agent must visually inspect the home and
report all facts that he or she feels might affect your decision to buy this
property. If you want information that is not covered in the Real Estate
Disclosure Statement or additional information that is disclosed, put your
questions in writing and ask the seller to respond in writing.

You should review the Disclosure Statement immediately and carefully. In

most instances, you will have a limited period of time to decide whether
you wish to proceed with the purchase despite the stated disclosures.
Depending upon your purchase agreement, some sellers will require a
written acceptance of the conditions contained in the statement. Other
sellers will consider your silence as acceptance of all of the conditions
contained in the Disclosure Statement.

If you buy a condominium, the seller must give you copies of the
homeowners association's rules and bylaws, and financial statements, and
must inform you if there are any unpaid assessments. You should also ask
to see the past minutes of the association board meetings. You might find
that there are pending or future lawsuits or defects in the construction of
the complex being discussed in these meetings. All of which would affect
the value of what you are buying.

4. Should the house be inspected?

Before buying any property, it is advisable to have it inspected by trained

specialists. The kinds of inspections you need depend on the location and
condition of the property. For example, in a hillside area, you might want a
soil stability inspection. If you are buying a home built before 1978, you
should seriously consider an inspection for lead-based paint. At a
minimum, you should have the home inspected to determine if it is
structurally sound, a pest control inspection to see if the house has been
infected by termites or dry rot, and a natural hazards inspection to see if the
home is located in an area subject to fire, earthquakes or flooding. The real
estate agent can advise you about additional inspections that might be
warranted under the circumstances.

Keep in mind that while the seller has to tell you about anything he is
aware of that is wrong with the house, he is not insuring the quality of the
house; for this reason, an inspection is a good idea.

5. How do I make an offer on a house?

Most homes are sold through real estate agents who have expertise in
valuing homes. You can also get information on home sales in your area by
visiting a host of Internet sites provided by professionals in the industry, or
by reading the real estate section of your local newspaper. Once you have
found the home of your choice and have determined how much you are
willing to pay, you need to make a deposit (called earnest money) to show
the seller that you are serious about buying the house. The deposit is
considered a down payment on the price of the home. In some instances
you may have to increase your deposit or increase your offer, especially if
there are multiple offers on the home.

The deposit is usually deposited in escrow upon the acceptance of your

offer. You submit a written offer on a form known as the Residential
Purchase Agreement and Receipt for Deposit. This form sets out the terms
upon which you are willing to purchase the property. The price you offer
on a home will, in most cases, be less than the amount you will need to
purchase the home. There will be expenses incurred in purchasing the
home that will have to be paid by either the buyer or the seller. These
include, for example, title reports, document preparation, recording fees,
local taxes, fees for inspections, escrow fees, homeowner's insurance, and
notary fees. Ask your agent or escrow officer to provide you with an
estimated closing statement. This will give you an idea of some of the
additional costs you will incur in purchasing your home. You do not want
any surprises.

6. What is a Residential Purchase Agreement and Receipt for Deposit?

This agreement is an offer which, upon acceptance by the seller, results in a
binding contract. It should cover all of the important terms of the sale. For
example, it should include a complete description of the property and of
any personal property that will be sold with the house, such as window
coverings, kitchen appliances, washers and dryers. It should state the exact
purchase price, including the amount of your initial deposit, any increases
in that deposit, the amount you will pay in cash, check or wire transfer, and
the amount you will need to finance to complete the purchase price. This
agreement should also list any conditions that may allow you to back out of
the contract. You will want a condition that allows you to cancel the
contract if you cannot obtain a loan on favorable terms or if the inspections
reveal substantial defects or problems with the home. You may also need a
condition that allows you to cancel the sale if you cannot sell your current
home. Please understand, however, the more conditions you have, the less
likely the seller is to accept your offer.

This agreement should also set forth what will happen to your deposit if
you cancel the sale, what will happen if you and the seller have a
disagreement over the terms of the sale, and how the brokers will be paid.
The agreement should also indicate whether you are purchasing the
property in "as is condition" or the seller is warranting the condition of the
property. Take the time to go over each and every term of the agreement
with your agent before you sign the agreement.

7. Can I change my mind?

You should not make an offer to purchase a house unless you are serious
about buying it. You can, however, revoke your offer before it is accepted
by the seller. This revocation should be in writing. If your offer has already
been accepted by the seller, you may be able to terminate or revise your
offer if you are unhappy with what your inspections reveal or if other
conditions of the offer are not met.

The Residential Purchase Agreement and Receipt for Deposit contains

several provisions that discuss what will happen in the event the sale does
not go through. There is a mediation provision, an arbitration provision and
a liquidated damages provision. The liquidated damages provision can
result in you losing most if not all of your deposit (up to 3 percent of the
contract price) in the event you elect not to complete the purchase price,
and your election is without good cause. There is no provision in the
standard contract for liquidated damages in favor of the buyer in the event
the seller wrongfully refuses to go through with the sale. You do not have
to agree to this provision. Carefully discuss the pros and cons of initialing
this provision with your agent or attorney.

8. How can I get a loan?

Most home loans are made by financial institutions such as banks, savings
and loan associations, and credit unions. Other sources of loans are
insurance companies, mortgage bankers, finance lenders, mortgage loan
brokers, pension funds and investment trusts. Lenders charge different fees
and offer different interest rates so it pays to shop around. Your agent will
be able to recommend lenders in your area.

When you apply for a home loan, the lender will check your credit rating
and review your past employment, income history, and credit and debt
obligations. It will also obtain information about the property that will be
security for the loan. This will include an appraisal or estimate of the
fair market value of the home, a review of the preliminary report prepared
by the title insurance company to determine what liens, easements and
other conditions will be superior to its loan, and a review of any taxes,
assessments and zoning regulations that affect the property.

Some lenders will charge you a loan application fee, document preparation
fee, appraisal fee and other fees to consider or close the sale. You should
discuss these fees with your lender before you submit your application.

9. What types of home loans are available?

In exchange for cash from the lender, you agree to pay interest and to make
payments over a period of time. In most instances, the property you
purchase will be security for repayment of the loan.

Sometimes a seller will offer a seller-financed or carry back deed of

trust. This financing method is often used when a seller wants to receive
income over a period of time or when lenders are stringent in their loan
requirements. The terms of these loans should be discussed with your agent
or attorney. He or she is best qualified to determine if the loan documents
and agreement meet all legal requirements.

Occasionally, you can "assume “a loan or take over a loan that the seller
has been paying off. You should be careful in assuming any loan. Most
loans have an acceleration or due on sale clause. This means that the
lender can demand that the seller's loan be paid in full when the property is
sold. If you wish to assume a loan, you should have your agent or attorney
review all of the seller's loan documents and make approval by the lender a
condition to your offer.

Most home loans that are available to Californians offer one of two interest
rate structures. A fixed rate loan offers a set interest rate, so that your
monthly payment never changes. Some fixed rate loans are federally
insured or guaranteed, such as a Veteran's loan or an FHA loan. These
loans usually have a lower interest rate and require smaller down
payments. For more information on these loans, get in touch with a local
office of the California Department of Veterans Affairs, the U.S. Veterans
Administration or the U.S. Department of Housing and Urban
Development (HUD).

Another type of loan that is available is an adjustable rate mortgage loan,

sometimes called an ARM. An ARM is a mortgage loan which provides
for adjustment of its interest rate as market rate interest rates change. The
ARM's interest rate is tied to an index that reflects changes in the market
rates of interest. Some indexes used are the Cost-of-Funds Index published
by the Office of Thrift Supervision, and the Federal Reserve Discount Rate.
These loans usually have interest rates that are lower than the fixed rate
loan interest. ARMs can be complicated. Make sure that you understand all
of the terms of these loans before you agree to accept one.

Occasionally, new mortgage plans become available that are intended to

meet specific needs of a community. These include loans for first-time
homebuyers, and loans for teachers. Check with your local consumer
affairs office and housing departments for up-to-date information on these
types of loans.

10. What occurs when I "close" on a home?

For the protection of the seller and the buyer, a person or company that has
no connection with you or the seller holds the money and papers involved
in the purchase. This procedure is called escrow. The escrow holder's job is
to make sure that all of the terms and conditions of the agreement are met.
He or she will also coordinate all of the activities of the broker, the lender
and the title insurance company. The escrow holder will deliver the deed to
the county for recording when it can pay the seller the money. Escrow
services can be provided by title companies, banks, savings and loan
associations, independent escrow companies, realtors or lawyers.

The escrow holder does not act as a mediator, a lawyer or an advisor. The
escrow holder is required by law to remain neutral. Its only job is to carry
out the terms of the escrow instructions. In Southern California, escrow
instructions are signed when the escrow is opened. They are modified
throughout the course of the escrow as the agreement between the buyer
and seller change. In Northern California, escrow instructions are executed
just prior to the close of escrow. These instructions should be clear and
certain as to the intentions of the parties and the duties of the escrow
holder. Make sure your Purchase Agreement does not conflict with your
escrow instructions. If they do conflict, the escrow instructions may be
considered your final agreement as to the terms of the purchase. If you are
uncertain as to what the instructions say, discuss them with your agent,
your lawyer, and the escrow holder.

After the close of escrow, the escrow holder will provide you with
a Settlement Statement. This document will show you, as the buyer, all of
the costs incurred by you in purchasing the property. You should review
this document carefully and save this statement for later. Many of these
costs may be deductible from either your state or federal taxes. If you have
any questions or concerns about the charges you incurred, contact the
escrow holder immediately and ask for an explanation.

11. How should title to the home be held?

Prior to the close of escrow, the escrow holder will ask you how you wish
to hold title to your new home. How someone holds title will affect what
will happen to the property in the event of the death of one of the owners. It
also will affect whether certain taxes will be incurred or whether a probate
of the estate will be necessary. You should discuss your options with a tax
specialist and your agent before you make your selection.

You can hold title to the home by yourself, as separate property, with your
spouse, as community property, or with your spouse or a third party, as
joint tenants or tenants in common. You can also hold title to the property
in a family trust. For more information on the different forms of ownership,
see the State Bar pamphlet Do I Need Estate Planning? To obtain a
complimentary copy of this pamphlet, mail a self-addressed envelope (with
55 cents in postage) to the Estate Planning, Trust and Probate Law Section,
The State Bar of California, 180 Howard Street, San Francisco, California,
94105-1639. For information on ordering multiple copies, call 1-888-460-
7364.

12. Do I need title insurance?

Title insurance is necessary for your protection when you buy a home. It is,
however, not a guarantee that problems will not arise after the close of
escrow. When you make an offer to buy a home, you, as the buyer, have
the right to choose the title company. This decision should be based on the
local office's expertise, and the company's record for fairly handling claims
under its policies. You should discuss these issues with your agent.

Once you have chosen a company, you should make one of the conditions
of the close of escrow clear title to the property. "Clear title" means that
when the sale to you is completed, the title to the property will be free from
liens, judgments and other claims that you have not agreed to accept. You
should also discuss with your agent the need for a survey of the property
and title insurance coverage for boundary line disputes. In many instances,
especially in rural areas, boundary lines are not where they should be. A
survey and survey coverage can help eliminate future disputes with your
new neighbors.Before a title company issues an insurance policy, it will
make an investigation to find out if anyone besides the seller claims to own
the property. It will also search the public records for claims against the
property. The title company will provide you with a report, called
preliminary report. You should carefully review this report to determine
if it describes all of the property you are interested in buying. You should
also review this report and determine what items you are willing to accept
when you purchase the property and what items you wish removed or taken
care of as a condition of the close of escrow. If you are uncertain as to what
the report says, you should discuss the matter with your agent, the escrow
holder and/or your attorney.

There are different kinds of title insurance available. Often the difference
in cost for the better policies is nominal. "Basic" or "Standard" coverage is,
in most instances, not the best policy available. For an additional one-time
cost or no charge at all, you can obtain protection for losses resulting from
illegal construction, zoning violations, unrecorded liens, prescriptive
easement claims, and post policy forgeries. Be aware that different
companies charge different rates. Discuss with your agent and the escrow
holder what policies are available in your area and the differences in prices
on each of the policies.

13. Congratulations!

Whether you are purchasing a home for the first time or for the fourth time,
the day of closing should be a cause for celebration. And since a portion of
your purchase price is paying for the agents and the escrow holder's
expertise, utilize their services throughout the process leading up to the day
of closing. Ask questions; ask for an explanation of any item you do not
understand. Request copies of any documents you do not understand; keep
copies of all documents relating to the purchase of your home. And, if
necessary, seek advice from a qualified real estate attorney or tax advisor.
Asking questions during the purchase of your home will help insure that
you and your family will enjoy your new home for many years to come.

2. INTRODUCTION TO THE COMPANY :

2.1 Company Profile (Apeksha Group) :

APEKSHA GROUP have early established their corporate office in

Chandra Nagar Ghaziabad and it deals in Real Estate sector. It is founded
by Mr. Sami Khan. APEKSHA GROUP is a team of professionals having
technical expertise, past experience in the field of Marketing, Finance,
Project Audit and Media for Real Estate Sector. Generally APEKSHA
GROUP runs three kinds of business –
1. Apeksha Media Network.
2. Apeksha Build Home Pvt. Ltd.
3. Apeksha Property Serve Pvt. Ltd.
Apeksha build home Pvt. Ltd. Has a concept Trusted Property to show case
certified Residential Projects or residential Properties on a portal named
www.trustedproperty.org . Trusted Property aims to create a system where
a Developer can be differentiated with unknown developer, Where
information available for all people, where a developer can demand right
price for their product , where investment risk is minimal, where update of
developers project available regularly. In a simple language I can say that
Apeksha build home Pvt. Ltd. aims to create transparency in real estate
sector.

OBJECTIVE:

Provide cost effectiveness to customers with innovation in marketing,

finance, media management and engineering.

Board of advisor’s –

 Er. Rajeev Rai

 B.Tech (Civil Engg.) ,IIT Roorkee
M.Tech.(Structural Engg.) , IIT Delhi
Member , expert comm., for retrofitting of buildings against
Earthquake forces,
Indian Building Congress

 Mr. Sami Khan

COO & Consultant
MBA – Marketing & Finance
On penal of different banks as a Financial Consultant

 Mr. Satsimar Singh

M.sc. –Management & Marketing
From London , UK

 Mr. Praveen Singh

HR in International Business

Chief Operating Officer’s Profile –

Regarded as one of the foremost corporate leaders of contemporary India,

Shri Sami Khan is the chief operating officer of Apeksha Group.
He is credited with having pioneered a number of path- breaking financial
innovations in the Indian capital markets.
He worked as a finance and marketing consultant for than 18 years and
involved into real estate companies as a General Manager for the last six
years.
He worked as a financial consultant for many reputed companies like
LML, Usha Group, Moserbaer, Prakash, Surya Roshni etc.
He has used number of tools and techniques in real estate sector.

2.2 SERVICES OF APEKSHA GROUP :

Apeksha group provide fallowing services to customer –

➢ Marketing consultancy
➢ Project management
➢ Finance advisor and Project financing
➢ Engineering and Design consultant
➢ Media advisor services
➢ Selling/ under writing of new projects
2.3 Apeksha Group’s Concept “ TRUSTED PROPERTY”
(www.trustedproperty.org)
Trusted Property, a concept designed by APEKSHA Group, to show case
Certified Residential Projects or Residential Properties on the internet Site.

What is a Trusted Property?

➢ A Property with Clear Title, Approved Maps & Finance-able.
➢ A Property Developed by a Certified Developer.
➢ A Property easily saleable.
➢ Clear Status & Surety of finance / Home Loan.
➢ A Property with better future Appreciation.
➢ A Property where Customer can take fast action without wasting
time in due diligence.
➢ A Property Different from the rest.

2.4 What is the requirement of TRUSTED PROPERTY for Real

Estate Developers?

For the following reason need of trusted property for real estate developer-
➢ STAND OUT in CROWD as real Developer of Real Estate.
➢ To Encourage Healthy Competition.
➢ VALUE for MONEY.
➢ Extend Help to Customers to take Right Decision
➢ Project Information & Documents available on 3rd Party site.
Another additional advantage for real estate developer –
➢ Easy Information Available not only to Customers but to Bankers,
Financial institution, corporate investors, Venture Capitalist &
Others.
➢ A system to Create Image of your Company.
➢ An Opportunity to Show-case all your projects on internet.
➢ No Need to give papers to HFC ( Home Finance companies).
➢ Get Recognition / Appreciations from Customers, Bankers, Investors
and also from GOVT.

2.5 WHY PEOPLE LOOK FOR TRUSTED PROPERTY?

For the following reason there is need of trusted property for people-
➢ One Stop Source for Legal, Technical & other information of the
Project of the Developers.
➢ One Stop Source to judge the available opportunity for purchase of
house/flat/land.
➢ Authenticity of Property of a developer from the 3rd party.
➢ Safety, Security and Surety of Investment.
 ➢ Continuous watch on the project.
➢ Construction stage, Home Loan availability, Special Facilities, Price
Movement, Fresh availability & Etc.
➢ A unique concept to understand and perform the right of customers.
➢ Platform to share problems and find solutions.
➢ Customer Forum for each project.
➢ Get help in case of problem with the developer.
➢ One stop Awareness site for Real Estate.

2.6 OBJECTIVE OF TRUSTED PROPERTY –

➢ Create a system where a Developer can be differentiated with

unknown developer.
➢ Where Customer cannot be Cheated.
➢ Where information available for all.
➢ Developer can demand right price for their product.
➢ Where investment risk is minimal.
➢ Where update of project available regularly.
2.7 FUTURE PROSPECT OF APEKSHA GROUP :

With easy availability of finance, emergence of double-income families,

fall in prices due to increased competition, government support regarding
transparency in real estate, growth of media, availability of disposable
incomes, improvements in technology, reduction in bank loan rate, growth
in consumer base of rural sector, increasing awareness of people regarding
property documents, smart management decision , hardworking employee
shows very bright future of Apeksha Group.

3.RESEARCH METHODOLOGY:

What is research?

Research can be defined as a scientific and systematic search for pertaining

information on a specific topic. We define research as the systematic
design, collection, analysis and reporting of data and findings relevant to a
specific situation facing the company. The main aim of research is to find
out the truth which has not been discovering yet.

3.1 OBJECTIVES OF THE STUDY

Project has mainly three following objective-
1. To determine the information gap that exists between real estate
developer and customer in order to get an idea about the
transparency in the real estate sector.
2. To examine, evaluate and document the problematic situations
arising between the real estate developer and customer.
3. Propose solutions or remedial measures to bridge the information
gap between real estate developer and customer.

3.2 SCOPE OF The STUDY :

The project undertaken makes me able to improve my professional
skills and expertise. It helps me in getting an idea of Real Estate
industry and its importance in our life. It increases my confidence on
professional ground by dealing with high profile corporate that are very
hard to convince. As for as company’s benefit is concerned , this project
helps company to know its market condition and level of competition.
Also it helps in creating awareness to consumers regarding property
documents and in promotion of there services.
In order to accomplish the objectives of the project a survey has been
conducted amongst customers of the real estate market. The survey
is based on questionnaire filling method and limited to some parts of
Delhi and NCR region. The survey is restricted to the information
needed to show legal, technical and financial transparency between
project developer and customer.
TYPE OF RESEARCH: - Exploratory and Descriptive.
 Exploratory research is a type of research conducted because a
problem has not been clearly defined. Exploratory research helps in
determine the best research design, data collection method and selection
of subjects. Given its fundamental nature, exploratory research often
concludes that a perceived problem does not actually exist.
Its seeks to find out how people get along in the setting under question,
what meaning they give to their actions, and what issues concern them.
The goal is to learn what is going on here?
On the other hand Descriptive research is aimed to find the complete
description about an existing problem or phenomenon.

RESEARCH DESIGN :-
A survey research method was the basic research design. I interact with
personally to people through questionnaire filling method.
Questionnaire is having questions regarding the respondent’s basic
information such as contact details, designation, what type of
information they want from real estate project developer and
Government, what type of documents they check while buying or
searching property.
3.3 DATA COLLECTTION METHODS :-
1. Primary data are collected through questionnaire method which is
design to keep in view the objective of the study.

2. Secondary data is collected through internet sources, research

papers, and published reports by various institutions.

3.4 SAMPLE DESIGN:-

Study of the geographical area comprising of Delhi, Ghaziabad, Noida,

Gurgaon, Faridabad were undertaken. It was tried to cover corporate
offices of different industries in these regions. Generally I met with the
employee related to top management of the company I visited. The sample
size consisting of 317 employee of these region.

3.5 Data Processing :-

Daily data was entered into MS-Excel sheets. After the exhaustion of the
specified geographical area this data was analyzed using SPSS () graphical
and tabulation techniques. The data sheets mentioned here are attached in
the annexure of the report.
4.DATA ANANLYSIS AND INTERPRETATION :-
 P rofession

V alid Cum ulative

Frequenc y P erc ent P ercent P ercent
V alid Govt.service 50 15.8 15.8 16.1
Pv t. servic e 246 77.6 77.6 93.7
Buisnes s 20 6.3 6.3 100.0
1 .3 .3 .3
Total 317 100.0 100.0
Total 317 100.0

During
survey I
visited
to many
Government and Privet offices to meet with people who can give me proper
response of my questionnaire. I met with total 317 people out of which 15.8% (50)
people are doing Government services , 77.6 %(246) people are doing Privet
services and 6.3 % (20) people are doing business.
I target to met with service class people because they are educated and they are
having capability of buying house or any experience of buying house or any
property.
AGE (In Years)

Valid Cumulative
Frequency Percent Percent Percent
Valid 25 to 30 4 1.3 1.3 1.3
30 to 35 37 11.7 11.7 12.9
35 to 40 144 45.4 45.4 58.4
More than
132 41.6 41.6 100.0
40
Total 317 100.0 100.0
Total 317 100.0

50

40

30

20

10
Percent

0
25 to 30 30 to 35 35 to 40 More than 40

AGE (In Years)

I met with people having different age . But generally I choose to met with people
having age more than 30 years .Because they have bought house or they are in
process of buying any house. The people I have met most people belong to age
group of 35 to 40 years and having 45.4 % and people belonging to age group 25
to 30 years having (least) 1.3%.People are in age group 30 to 35 years and more
than 40 years are having 11.7% and 41.6 % respectively.

Qus.2: How much are you satisfied from real estate marketing information
provided by real estate companies?

Qus. 2

Valid Cumulative
Frequency Percent Percent Percent
Valid strongly
15 4.7 4.7 4.7
satisfied
satisfied 129 40.7 40.7 45.4
neutral 81 25.6 25.6 71.0
dissatisfied 61 19.2 19.2 90.2
strongly
31 9.8 9.8 100.0
dissatisfied
Total 317 100.0 100.0
Total 317 100.0
 strongly dissatisfie strongly satisfied

dissatisfied

satisfied

neutral

With the help of above pie chat and table its is clear that majority (40.7%) of
people are satisfied but very less proportion (4.7%) of people are strongly
satisfied with the marketing information provided by the real estate companies .
Many people who are satisfied with the marketing information provided by
developer ,they were saying that Real estate companies does not want to share
each marketing detail but also some real estate companies does not want to hide
any marketing detail if customers asking about them. 25.6% people are neutral,
19.2 % people are dissatisfied and 9.8 % people are strongly dissatisfied from the
marketing details provided by the real estate companies. The reason of this strange
result in simple languages is as fallows-

➢ Builders are not giving complete marketing information in there brusher.

➢ Marketing information provided by real estate developer are condition
based.
➢ In marketing information book developer does not share share negative side
of project.
➢ Paper work is little bit different from actual work.
We can make most of the customers satisfied by –
1. Creating awareness about all the marketing details.
2. Developers provide each( negative and positive) marketing details without
any terms and conditions in their brochure.

Qus.1: Do you check legal status of the construction when you search/buy
property ?

Q US . 1

V alid C um ulativ e
F requenc y P erc ent P erc ent P erc ent
V alid y es 261 82.3 82.3 82.3
no 56 17.7 17.7 100.0
T otal 317 100.0 100.0
T otal 317 100.0
 no

yes

After survey I found that 82.3% people are checking legal status of construction
while buying or searching house/ property and rest 17.7% people are not checking
legal status of construction of house or property.
It is clear that most of people are having awareness about this and they
(Respondent) were saying that builders are not in intention to provide this
information. Builders were saying that information about legal status of
construction are obvious, because we(builder) are constructing project after
checking all legal construction criteria. But many people were saying that some
builder for their own profit they construct house without checking legal status of
construction. So builders should share information related to legal status of
construction with customers to make them more satisfied.
Legal status of construction include-
RCC structure (per square mixture ratio used, Earthquake resistance, Fire
clearance, Water harvesting, and other government restriction and leas.
Correlation between QUS. 2 and QUS. 1 -
 50

40

30

20

QUS 1
10
Percent

yes

0 no
strongly satisfied neutral strongly dissatisfie
satisfied dissatisfied

QUS2

From the above graph it is clear that the customers who are satisfied with
marketing information provided by real estate companies they are checking legal
status of construction while buying house or property, and the people who are not
checking legal status of construction they are generally neutral and dissatisfied. So
its shows that people who are all ready aware about the what information should be
in marketing detail book they are satisfied with the marketing detail provided by
the real estate companies .

QUS.6: Do you check for exit clause while purchasing a property?

 QUS. 6

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 257 81.1 81.1 81.1
no 60 18.9 18.9 100.0
Total 317 100.0 100.0
Total 317 100.0

no

yes

From the above pie chart and table I can conclude that most of the people (81.1%)
are checking exit clause while purchasing a property and remaining (18.9 %) are
not checking the exit clause.
Some developers says that exit clause depend upon the size of the deal, complexity
of the project and the environment in which the project is exists.
Peoples (respondent) were saying that the economic and credit climate has meant
the rise of the “exit clause” in commercial and residential real estate deals, a fine
print item that got little play before now. Though the proliferation of deals is
limited these days, the ones in the market are getting extra scrutiny from lenders,
landlords, tenants, brokers and sellers. On the other side, developers are canceling
or delaying projects to hold onto what cash and lines of credit they have on hand. It
all boils down to the money.

Corelation between Qus. 2 and Qus.6

50

40

30

20

qus6
10
Percent

yes

0 no
strongly satisfied neutral strongly dissatisfie
satisfied dissatisfied

QUS2

From the above graph it is clear that people who are checking exit clause while
purchasing a property they are satisfied with the marketing details provided by the
real estate companies and vice-versa. So to make customers more satisfied builders
should provide information related to exit clause in marketing detail broacher .
QUS. 8: Do you want to check details of booking before buying or searching
house?

QUS. 8

Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 224 70.7 70.7 70.7
No 49 15.5 15.5 86.1
Cant say 44 13.9 13.9 100.0
Total 317 100.0 100.0
Total 317 100.0
 Cant say

No

Yes

People say that checking details of booking is very important homework before
buying house. By checking details of booking they (respondent) can get fallowing
information-
➢ Helps to identify the apartment of their choice.
➢ An idea about how much funds developers are having in hand.
➢ Idea about builder’s genuinety.
➢ Idea about which type of persons are in their neighborhood.
QUS.5: What source of information do you prefer while buying/ searching for
a property?

qus5

Valid Cumulative
Frequency Percent Percent Percent
Valid print media 75 23.7 23.7 23.7
TV and RADIO 16 5.0 5.0 28.7
internet 128 40.4 40.4 69.1
outdoor
22 6.9 6.9 76.0
advertisement
broker 29 9.1 9.1 85.2
personal
47 14.8 14.8 100.0
reference
Total 317 100.0 100.0
Total 317 100.0
 50

40

30

20

10
Percent

0
print media internet broker
TV and RADIO outdoor advertisemen personal reference

qus5

Above Table and chart shows that most of the people prefer Internet (40.4 %) and
Print media (23.7 %) for searching house or property. And other sources like
Personal reference, Broker, TV & Radio, Outdoor advertisement are having 14.8%,
9.1%, 5%, and 6.9% respectively.

Many people say that search of property through internet is very comfortable.
Because in a one click they can reach to number of builders and their projects.
They were saying that mostly internet property web portal show only marketing
detail of projects but if they will show legal and technical document of project so
searching property through internet become more beneficial.

Some people say that print media is better way of searching property because it is
easily available at every where any time and also gives information about current
status of project with marketing details.
Many people were saying that buying or searching house or property through
broker is not safe because of their dual nature .Generally they are making hype of
the developers’s project and hide negative side of the project.
Corelation between Qus.2 and Qus.5 –

300

qus5
200
personal reference

broker

outdoor advertisemen

100 t

internet
Percent

TV and RADIO

0 print media
strongly satisfied neutral strongly dissatisfie
satisfied dissatisfied

QUS2

From the above table we can see that people who are using internet and Print
media for searching house or property are satisfied with the marketing details
provided by the real estate developer.
So its clear from here generally internet, print media, personal reference and broker
provides real information to customers respectively.
QUS.3 Choose your preferable location and types of house you want to
purchase?

Q US .3 Case P rocessin g S um m ary

Cas es
V alid M is s ing Total
N P erc ent N P erc ent N P erc ent
Q us .3
Loc ation/ 317 100.0% 0 .0% 317 100.0%
Ty pe

QUS .3 Location and Type of house Crosstabulation

Count
Ty pe of house
1 B HK 2 B HK 3 BHK 4 B HK others Total
Location New Delhi 9 24 30 3 66
Ghaziabad 8 42 45 4 2 101
Noida 2 36 19 1 58
Faridabad 3 19 11 33
Gurgaon 2 22 6 1 31
Others 28 28
Total 24 143 111 9 30 317
 100

80

60
QUS.3 Type of huse

1 BHK
40
2 BHK

3 BHK
20
Percent

4 BHK

0 others
New Delhi Noida Gurgaon
Ghaziabad Faridabad Others

QUS.3 Location

From the above graph and table it is clear that currently there is great demand of
3BHK & 4 BHK. and also demand of 1 BHK and 2 BHK if we consider location
criteria .
Relation between type of house and consumer preferred price level -

500 QUS.4 Price level

55 to 65

400 50 to 55

45 to 50

300 40 to 45

35 to 40

200 30 to 35

25 to 30

100 20 to 25
Percent

15 to 20
0
1 BHK 2 BHK 3 BHK 4 BHK others

QUS.3 Type of house

From the response of people it is clear that price of type of house depend upon
location and furnishing level. But from the above graph generally we can get
fallowing results-
➢ Most of the people want 1 BHK in 15 to 20 lakhs and some wants in 20 to
25 lakhs &very few people wants in 30 to 35 lakh.
 ➢ Most of the people want 2 BHK in price range of 20 to 25 lakhs & 25 to 30
lakhs.
➢ Most of the people want 3 BHK in price group of 35 to 40 lakhs,45 to 50
lakhs & 50 to 55 lakhs.
➢ People wants 4 BHK in the range of 55 to 60 lakhs.
➢ There is not great demand of Penthouses and villas in Delhi and NCR
region.
➢ Most of the people who are doing job or having business if wants to
purchase 3 BHK or 4 BHK prefer luxury house.

Consumers preference of information related to property document from

Real Estate web portal-

Consumer's preference of information related to property document from

real estate web portal

Valid Cumulative
Frequency Percent Percent Percent
Valid 1 200 63.1 63.1 63.1
Preference 2 77 24.3 24.3 87.4
3 33 10.4 10.4 97.8
4 7 2.2 2.2 100.0
Total 317 100.0 100.0
Total 317 100.0
 4
3

From the above table and pie chart its obvious that most (63.1%) of the people give
first preference to property document. They (respondent) say that while searching
property on real estate web portal they want to see property document of project as
a first preference comparison to marketing details, past record of builder ,
Government new policy related to real estate sector but in real world NO any real
estate web portal provide property document on web portal except www.
Trustedproperty.org,
So “TRUSTED PROPERTY.ORG” playing very crucial role in filling information
gap between real estate developer and customer and give customer more
satisfaction.
Other than this 24.3% , 10.4%, 2.2% people choose property document as a
second, third, and fourth preference respectively
Consumer’s preference of information related to “Past record of builder”
from Real Estate web portal-

Consumer's preference of information related to past record of builder from

real estate web portal

Valid Cumulative
Frequency Percent Percent Percent
Valid 1 47 14.8 14.8 14.8
Preference 2 39 12.3 12.3 27.1
3 103 32.5 32.5 59.6
4 128 40.4 40.4 100.0
Total 317 100.0 100.0
Total 317 100.0
 4

Above table and pie chart shows that 40.4% and 32.5% people give 4th and 3rd
preference respectively to information related to “Past record of builder” from real
estate web portal. Very few people choose 1st and 2nd preference as “past record of
builder” among Property document, marketing details, and Government new
policy related to real estate sector.
Consumer’s preference of information related to “Marketing Details” from
Real Estate web portal-

Consumer's preference regarding Marketing Details

Valid Cumulative
Frequency Percent Percent Percent
Valid 1 55 17.4 17.4 17.4
Preference 2 120 37.9 37.9 55.2
3 62 19.6 19.6 74.8
4 80 25.2 25.2 100.0
Total 317 100.0 100.0
Total 317 100.0

3
2

From the above table and pie chart I can conclude that Most of the people 37.9%
and 25.2 % choose information regarding marketing details from real estate web
portals as 2nd and 4th preference. Other than this 17.4% and 19.6% people choose
information regarding marketing details as 1st and 3rd preference.
Consumer’s preference of information related to “Government new policy
related to real estate sector” from Real Estate web portal-

Preference of consumer regarding Government new policy related to real

estate sector

Valid Cumulative
Frequency Percent Percent Percent
Valid 1 15 4.7 4.7 4.7
Preference 2 81 25.6 25.6 30.3
3 119 37.5 37.5 67.8
4 102 32.2 32.2 100.0
Total 317 100.0 100.0
Total 317 100.0

40

30

20

10
Percent

0
1 2 3 4

Preference of consumer regarding Government newpolicy

It is clear from above table and histogram that most of people 37.5%, and 32.2%
give 3rd and 4th preference to information regarding “Government new policy
related to real estate” ,Remaining 25.6 % and 4.7% people choose it as a 2nd and 1st
preference respectively.

From the above discussion it is clear that people are now more conscious about
property document, marketing details of project rather than only past record of
builder and Government new policy related to real estate sector. But most of the
real estate web portal and project developer (builder) only provide information
related to marketing details and some Government new policy related to real estate
sector. So what information people (customer) want actually they do not get and it
creates a information gap between real estate developer and customer (people).

QUS.10: Do you know what steps should be taken by regulatory body

(Government or Private ) in Real Estate sector ?

While doing survey I interact with many people and after asking this question
generally they give me fallowing responses –

 Healthy & friendly business environment, security facility for customers.

 Transparency in legal terms
 Shefty Majors for buyer, seller and other exiting players.
 Display all the guidelines & easy access to customers.
 Consumer protection from illegal things.
 All the needed information can easily available to customer.
 remove corruption
 create legal environment
 Public supported policy
 Transparency in terms of law and finance
 Transparency in business
 remove illegal things
 Make policy that make easy prospect in real estate sector
 Reduce bank loan rate
 make everything clear and transparence
 Make available all needed information while buying property
 Prevent crime
 Remove corruption ,
  Define all clause in information book
 To control fraud in real estate
 Guide consumer in right direction
 Fever able policy for buyer & consumer
 Make forum to protect customer
 Help common man
 Give fever able majors to builders as well as customers so that they can there
interaction become easy.
 Check reliability of builders & building & support customers
 Make policy to buy and sell house or property become easy
 Information transparency
 Create policy that can remove corruption and support end users
 Make favorable policy so that people can get loan easily and trust on Govt.
 should make clear picture of all the agreement between developer &
customer
 Price control & remove corruption
 People can get justice easily.
 The price level at a level so that everyone can afford a house
 People can get required information from builders
 Implement hard & fast rule on forum to work in a corruption free manager
 Make policy such that customer can get right thing at right price
 Periodical review of policy and make focus on its implementation
 check builder working methodology if possible fix guideline according to
this
 Give license of building to only reputed builder to stop fraud
 Make necessary to each builder to fallow govt. scientifically criteria to build
house
 review FDI contribution and set it again

It is clear from above detail that some people are aware about the what kind of
policy government should make regarding real estate. But most of the people
giving suggestion regarding the problem which they have faced in their life. For
example one respondent Mr. R.N. Singh said that government should reduce home
loan rate.
So there is need to create awareness about what government is doing in real estate.
We can create awareness through internet (web portal), Print media, TV and Radio.
QUS.11: What all documents you should look before buying house?
Peoples are now very conscious about property document. They were saying that
while buying or searching property they check property document, but since most
of them do not know the all property document required to check that’s why there
is need to create awareness about property document and builders should show all
the property document to customers themselves.
While survey generally people gave name of fallowing property document –
✔ Link chain ownership document.
✔ Registry
✔ Map approval doc.
✔ Kheshara- khatauni
✔ Sale deed
✔ Intakhap paper
✔ Paper shows approval from government authority
✔ Paper of agreement between buyer and seller
✔ No objection certificate (N.O.C.)
✔ Acquisition letter
✔ Payment receipts
✔ Power of attorney of land.
SWOT Analysis of Apeksha Group –

Strengths –
➢ Team of professional having technical expertise, Past experience in the field
of marketing, Finance, Project audit and Media for real estate sector.
➢ Wide range of services on web portal compared to other web portals.
➢ By creating awareness regarding Marketing details, legal and technical
document of the project make consumer more satisfied.
➢ In recent years, organized sector has increased its share in the market vis a
vis unorganized sector.

Weakness –
➢ Failure to curve the activities of the unorganized sector.
➢ Lack of project developer’s support in providing legal and technical
documents.

Opportunities-
➢ The growing population of India.
➢ People become more educated.
➢ Rapid urbanization.
➢ Increasing trust of people on real estate web portal.

Threats –
➢ Tough competition among web portal segment of real estate.
➢ Some illegal services provided by the Broker.
➢ Government policy.
5.FINDINGS AND CONCLUSION :-

5.1 Findings:
➢ Most of the people (40.7%) are satisfied from the real estate marketing
information provided by the real estate companies, but very few people
(4.7%) are strongly satisfied.
➢ 82.3% people are checking legal status of construction while buying/
searching house .
➢ Most of the people (81.1%) people check delayed delivery penalty clause
while buying a property.
➢ 70.7% people want to check details of booking before buying or searching
house.
➢ Most of the people choose INTERNET and PRINT MEDIA as a source of
information while buying or searching for a property.
➢ People who choose internet , print media, broker, and personal reference as a
source of information for searching house or property are more satisfied
compare to other source of information.
➢ There is great demand of 2 , 3 , and 4, BHK house in near future in DELHI
and NCR region.
➢ Most of the people choose information related to property document as a
first preference comparison to marketing detail of project, past record of
builder and government new policy related to real estate sector.
➢ Most of the people want that government make policy which creates
transparency in terms of legal, technical and financial in real estate sector.
➢ Most of the people know only the name of few property documents and they
check only these documents while searching a property.
➢ A lots of builder do not want to show property document to customer.
5.2 CONCLUSION:-

Now people become more aware of the immense potential of information and
communication. People know that buying a house or property involves more
money and risk. So they want to check every aspect of information related to
buying a property, but since some people do not know about the all information
needed to buy or searching property and builder whatever information provided to
customer either those information are not sufficient or having some terms and
conditions. Because of this there are many situation arises in which customers are
cheated by developers and developer cannot make customers more satisfied.
So because of above reasons there is need to create awareness among customers as
well as project developers to bridge existing information gap.
6.SUGGESTIONS:
On the basis of my findings, I want to make certain recommendations which are as
fallows –
Recommendation to Apeksha build homes Pvt. Ltd. –
➢ First and most important, the database generated through the project should
be put to effective use through continuous follow-up on the potential
customers. A follow-up should be made on the industry potential as a whole
as well.
➢ Company should provide information according to people’s need and
necessity
And for that they can open daily poll on their web portal.
➢ Company should not always try to attract the new customers only, but
should also take feedbacks from existing once, and try to remove their
problems and learn from their experience .
➢ Company should make more contact with contractors and Architects to tap
more of builders.

Recommendation to customer –
➢ Customer should check all the legal and technical document not only
marketing details of the builders project before buying or searching house.
➢ Customer should go through all the terms and condition of the project
developer.
➢ Customer should be aware about the government’s policy related to real
estate.
Recommendation to Project Developer (Builder) –
➢ Builders should show their legal and technical document to customer
themselves to make them satisfied because most of the customer wants to
check it and it also helps to create their unique identity.

LIMITATIONS:-
➢ Unavailability of the desired personnel was the biggest constraint to this
study. Although appointments were made and followed up where possible
but still there were instances where the desired person was either unavailable
or unwilling to meet.
➢ No prior information regarding the addresses or other details of the offices to
be visited was provided, thus a few target persons were left uncovered.
➢ This project is completed in six weeks, so due to time constraints it was not
possible to cover all the area of Delhi and NCR region.
➢ Some dealers were hesitating to give supportive data. Some of them ignored
the questionnaire which we were supposed to be filled by them due to this,
affecting the scientific accuracy.
BIBLIOGRAPHY

Referred Books:

 Kothari C.R.- “Research Methodology” New Delhi Tata McGraw Hill In

(95-102)
 Kotler Phillip –“Marketing management “analysis, planning implementation
and control.
 Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behavior", Prentice
Hall of India “6th edition
 Singh Harpreet–“Research Methodology”-Kalyani Publishers.(page no. 1-8,
68-102)
Referred Websites:

 www.apekshagroup.co.in
 www.trustedproperty.org
 www.indianrealestateforum.com
 www.google.com
 www.scribd.com
 www.propertywala.com
 www.indiatimes.com
 www.buisnessstanderd.com
 www.economicstimes.com

Referred Pamphlets & Broachers:

Pamphlets and broachers of Samsung provided by Samsung Electronics,
Chandigarh.
 QUESTIONNAIRE
(NOTE-All the information taken from you is only used for research purpose)
TOPIC- To understand the information gap between Real Estate Developer and Customers
PERSONAL DETAILS

Name- …………………………………………………………………………………………………
Profession- Govt. service Pvt. Service Business

Contact No. +91-………………………….... Designation ………………………………………

Company/ Organization Name …………………………………………………..

Email-id …………………………………………………………………… ……

Age (in yrs) - 25 to 30 30 to 35 35 to 40 More than 40

1. DO you check the legal status of the construction when you search/buy property?

a) Yes b) No

2. How much are you satisfied from real estate marketing information provided by real estate companies?

a) Strongly Satisfied b) Satisfied c) Neutral

d) Dissatisfied e) strongly dissatisfied

3. Tick the options which match your preferable location and types accordingly?
 Location
Type
1 BHK 2 BHK 3 BHK 4 BHK Penthouses Villas

New Delhi

Ghaziabad

Noida

Faridabad

Gurgaon

Others

4. For the above chosen option how much are you willing to pay?

…………………………………………………………………………………………………………….

5. What source of information do you prefer while buying /searching for a property?

a) Print media b) T.V. and Radio

c) Internet d) Outdoor Advertisement

e) Broker f) Personal Reference

6. Do you check for exit clause while purchasing a property?

a) Yes b) No

7. What kind of information do you want from real estate web portal? (Rank1 to most important 4 to
least)

a) Property document b) Past record of builder

c) Marketing details d) Govt. new policy related to real estate sector

8. Do you want to check details of booking before buying or searching house?

a) Yes b) No c) Can’t say

9. Do you check for delayed delivery penalty clause while buying a property?

a) Yes b) No

10. Do you know what steps should be taken by regulatory body (Govt. or Pvt.) in real estate sector?

……………………………………………………………………………………………………………..

……………………………………………………………………………………………………………..

11. What all documents you should look, before buying a house?

………………………………………………………………………………………………………………

Thank you for sparing your precious time

TrustedProperty.org

710-711, Devika Towers

Chander Nagar, Ghaziabad, (U.P.)- 201011

Phone No. 0120-4166001