• Agreement for purchase signed

I have signed an agreement to purchase an apartment with a reputed builder.  As per this, the builder is demanding payments of the installments as he has started the construction.  But I found out the building does not yet have BBMP approval, which I believe is required for any construction.  The builder claims it is normal delay and they have a clause in the agreement that they will get the required approvals.  What options are there for me at this juncture?
Asked 3 years ago in Property Law from Bangalore, Karnataka
1. You should have incorporated proper clause in the sale agreement that in case of failure of to get such approval within a certain time, the agreement will be cancelled.
2. It is true that in many case such approval comes late but the constructions ideally starts only after such approval comes.
3. I would advise you to delay the payment till the sanctioned building plan comes at the hands of the builder. Send a letter to the builder in that direction.
Devajyoti Barman
Advocate, Kolkata
12535 Answers
161 Consultations

5.0 on 5.0

Hi, before entering into agreement you have to make sure that the all the documents of the property are legally correct.

2. Anyhow you have entered into an agreement so you just once again confirm in writing that if he doesn't get the approval BBMP he will refund the entire money paid by you.
Pradeep Bharathipura
Advocate, Bangalore
4530 Answers
202 Consultations

4.3 on 5.0

1) since builder is reputed one and you have already signed agreement to purchase the flat you are bound by its terms and conditions . 

2) builder cannot commence construction unless commencement certificate and IOD is issued by municipal corporation 

3)if builder carries on construction withoutrequisite approvals construction is illegal 

4) as per your agreement with builder you would be bound to make payment as per slab wise construction and on achievement of certian milestones

5) if you delay payment builder will charge you interest as per agreement 

6) inform builder that you are willing to make payment as per agreement but since requisite approvals are not obtained you are unable to pay the installments
Ajay Sethi
Advocate, Mumbai
44334 Answers
2575 Consultations

5.0 on 5.0

1) You ought to have checked and confirmed before signing the agreement to sell that the builder had requisite approvals from the civic authorities.

2) Now that you have already entered the agreement your option is to agree to pay.

3) Do send him a protest note and make the payment. In the note make mention about the approval not being in place and you are making payment based on confirmation from the builder that he would get the approval before the next instalment is due.
S J Mathew
Advocate, Mumbai
2229 Answers
110 Consultations

5.0 on 5.0

1. After the agreement is signed both the parties are bound to act in accordance thereof as the agreement ranks sacrosanct. 

2. You seem to have failed to carry out legal due diligence before signing the agreement. When the builder had not obtained BBMP approval you should not have entered into the agreement to purchase. Whether or not the requisite permissions and sanctions have been obtained is to be ascertained before and not subsequent to the signing of the agreement. 

3. Builder has to wait till he gets the green signal from BBMP to commence the construction, failing which the building can be demolished at any time.

4. You are bound to make payments in accordance with the payment schedule laid out in the agreement. 

5. Now issue a lawyer's notice to the builder informing him that since the requisite permissions have not been obtained by him you are unable to make the payments.
Ashish Davessar
Advocate, Jaipur
22966 Answers
631 Consultations

5.0 on 5.0

1. Have you incorporated any clause in your agreement for sale as to what the builder will do or how will he return your money in case the building plan is not approved?

2. The builedr can not start construction without obtaining sanction of his construction  plan,

3. Send him letters asking for the sanction of the building plan for want of which you are unable to pay assuuring him that as soon as he gets the sanction of the building plan, you will send him the arrears with appropriate interest,

4. You shall thereafter have very good ground to file consumer case, if need be, later on.
Krishna Kishore Ganguly
Advocate, Kolkata
18157 Answers
438 Consultations

5.0 on 5.0

this is simply a contract for building a house for you. if at the time of making of contract there is any defect then you can't claim damages from the opposite party if he breeches the agreement  so be cautious and don't involve in agreement without approval of bbmp.
Shivendra Pratap Singh
Advocate, Lucknow
4973 Answers
78 Consultations

4.9 on 5.0

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