From: Rajan, Mira Road, Mumbai. Dear Sir/sirs, My builder is demanding additional payments over and above the agreed cost of the flat in the name of various charges such as development charges, legal charges, etc. He is also demanding maintenance charges in advance for 24 months (at a high rate per sq.ft) without which he will not hand over the flat. Are his demands valid under law and if the answer is "No" whom we can complain?
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1)does the regsitered sale deed executed by the builder mention the legal expenses , development c harges, maintenance expenses to be recovered?
2) if there is no clause builder cannot demand additional amount from flat owners
3) refuse to pay and file complaint before consumer forum against builder and seek orders to direct builder to hand over possession of flat to you
1. maintenance charge shall be levied by the society after completion of the project. builder has no right to get this charge.
2. if such additional fees are not mentioned in the agreement then he cannot demand it because it is Ultra vires.
This is illegal as the builder cannot demand a penny over and above what was originally agreed in the agreement. Issue a lawyer's notice to him to ask him to deliver the possession of the flat, and if he does not do so then he can be sued for delivery of possession with compensation in the consumer forum.
1. If the said demand for additional amount is not too high then it will be prudent on your part to pay the same under protest and take possession of your flat and get the sale deed registered first since if you take any legal recourse, the builder may refuse to handover possession to you or register the sale deed.
2. After you take possession of your flat and get your sale deed registered, file a complaint case against the builder before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming refund of all the extra amount taken by him with interest, damage and cost.
3. it is a good case to win.
If the demands made by the builder is unjustified and fo not tkae place in the rgisterd sale agreement, then you may question his authority in writing and also refuse to pay him.
He cannot charge any exorbitant amount as per his will and wish.
You may even issue a legal notice to him mentioning his illegal demands and can drag him to consumer forum if he still refuses to handover possession or the services towards the maintenance.
You may consult a local lawyer before taking any legal action on this.
In the agreement the builder has mentioned some of the charges for extra payment, especially the demand for 24 months advance maintenance charges. Can we not challenge him if the extra charges are mentioned in the agreement even if they are beyond "reasonable limits" or Ultra vires?
Most builders collect some amount of maintenance charges in advance
2) the reason being after purchasers have taken possession of flats they default in payment of maintenance charges
3) if extra charges are mentioned in agreement and have been agreed to by purchasers you are bound to pay the charges
'Ultra Vires' is a totally different concept, so do not bring it in here. I would say get the agreement vetted by a lawyer for a concrete opinion.
Builders overcharge the buyers by taking advantage of multiple factors.
These factors are ignorance of property buyers, loopholes in the legal agreement and lastly through Bullying
Though the reputed builders may not adopt such cheap tactics.
Nowadays, it’s a normal practice that after handing over the possession of the property, builder retain the rights of property maintenance for 12 to 24 months.
Builders charge maintenance at the rate of Rs 7 to Rs 10 psf which is a very princely amount. A clause in the agreement also gives a right to increase this amount in future if there is an increase in maintenance cost. It is advisable to discuss the same with the builder and association should be formed immediately after the possession is received.
You can challenge the one sided agreement by refusing to budge to the pressures of the builder, let him initiate legal action as the same is not maintainable.
1. Yes, demand for payment of 24 months maintenance charges in advance is certainly abnormal and confronts any reason.
2.You can challenge the said term of the agreement which was forced upon you by the builder holding a 'dominating position' in the deal.
3. This payment term of the agreement should be prayed to be cancelled.