• Builder asking for extra money by increasing saleable area before possesion.

Hello, 
I booked a flat 6 years ago and was suppose to get the possesion in 2014. I made the agreement and paid Stamp duty and registration than. The project was delayed by 4 years. Now right before possesion in June 2018 when the last demand letter of 5% is to be raised, builder is asking me to sign a suplementary agreement. They say that they had to change the area of the flat from 711 to 823 carpet area which comes to 1318 as saleable area. They now want me to pay for the additional 253 sq ft increase in saleable area and sign the supplementary agreement. The amount is around 30 lakhs plus taxes etc and I feel cheated. I never asked for this increased area and told them that this was never intimated to me. Due to delay in project I have already paid additional interest to bank. The buying cost of property will be around 2.1 Cr including interest paid to bank while selling cost per today is 1.8 Cr. Could you please suggest me a way out here?
Thanks in advance.
Asked 4 years ago in Property Law
Religion: Hindu

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11 Answers

1) dont sign supplementary agreement

2)builder cannot increase size of flat arbitrarily without your consent

3) refuse to pay Rs 30 lakhs demanded by builder

4) seek compensation for delay in delivery of possession by 4 years

5) also claim interest paid to bank , rentals paid by you

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

Hello,

If you want to get the entire money back with interest and now do not want the possession then you may send them a letter for cancellation of the flat.

Later you may file a case before the National Consumer Forum for unfair trade practices.

Kindly consult a lawyer with entire set of documents.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. Check your sale agreement as after completion of constructions the actual area of flat differs and hence in most agreement there is clause of relaxation of computation of final sale price of the flat.

2. If there is no such clause and since the difference of flat agreed to be sold and actually getting is huge you can ask the builder to give you an alternative flat of similar area.

3. if not then you can go for cancellation of agreement but considering the amount so far made it is a not a prudent area.

4. in that event if you can ask for concession in price and if he does not then file case before the consumer forum.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

hello,

file a case against the builder in a RERA (real estate regulatory authority) tribunal which has been specially constituted for problems related to this nature. also, file a complaint against him for fraud and cheating.

regards

Rahul Mishra
Advocate, Lucknow
13759 Answers
65 Consultations

5.0 on 5.0

1. the builder should have taken prior permission and consent of flat buyer before increasing the carpet area to 823

2. builder cannot unilaterally increase the carpet area and thus saleable area and demand money for excess area

3. 30 lacs is not a small amount to arrange

4. what do you wish to do?

5. do you wish to continue in the project or withdraw from the project?

6. if you wish to withdraw from the project due to delay in handover of possession then you can approach RERA

7. you will get refund of all your moneys so far paid plus bank interest plus stamp duty and registration fee

8. you can also claim interest on all the above amounts plus compensation

9. in the event you wish to continue in the project then:

i. ask the builder to provide sanctioned amended plans showing amended carpet area

ii. ask the builder for original plans showing original carpet area

iii. ask the builder at what rate is the excess area being charged from you?

iv. whether its the rate which was agreed in the agreement while agreeing to buy flat of original carpet area or rate as applicable to present?

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

You don't have to sign the same. You can deny. Its your choice. If he still compels then you may file Complaint with Consumer Court

Prashant Nayak
Advocate, Mumbai
27267 Answers
88 Consultations

4.4 on 5.0

10. also what was the earlier saleable area?

11. how did the builder arrive at the figure of new saleable area?

12. ask the builder what all is included in the carpet area - as per RERA the area of external walls, balcony and open terrace attached to the flat are not to be counted in carpet area. Also the area under the internal walls are to counted in computation of carpet area - so if the unit is ready then check if the carpet area informed by the builder confirms to the definition of carpet area as given in RERA - you can take help of an architect for measuring the exact carpet area as per RERA

13. Once you get the exact carpet area then check what % loading is applied to the carpet area to arrive at the saleable area

14. compare the new % loading to the loading applied to the original carpet area to arrive at the saleable area which is mentioned in your agreement

15. if there is any decrease in the stated carpet area then under RERA, the builder is obligated to refund you for the deficit area

16. its highly unfortunate that despite RERA coming into force there is no clarity on carpet area and super built up area

17. i suggest you ask the builder to quite you separately for the carpet area and separately for the area above carpet area upto the saleable area - this extra amount will be the cost you will be paying for proportionate share in common areas and facilities

18. so you should know exactly what amount you pay for carpet area and for the common areas and facilities

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Dear Client,

You are not bound to accept any alteration in carpet area and can refused straight. you are entitle to what ever is agreed in the sale agreement.

If Builder failed or force to execute another agreement, you can complain to RERA and consumer court for compensation, interest paid for delayed possession and other relief.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. Is it mentioned in your agreement for sale that the area of the flat might vary even after registering the said agreement?

2. If not then you can refuse to pay the said increased amount claimed by the builder.

3. Is there any clause mentioned there in to pay penalty by the builder for late delivery of possession of the constructed flat?

4. If yes then you can claim the said penalty from the builder.

5. Even if there is no such penalty clause mentioned in the said agreement, you can file a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming the said penalty and also compensation in the form of house rent or interest on the loan which ever is higher for the delayed period with interest, damage and cost.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

This is my response to you:

1. Is the project registered under RERA?

2. If they do not respond well, then ask for the building plan from the builder, ask for the architecture plans or the Municipal corporation;

3. If not then send them a legal notice under Consumer Protection Act and MOF Act;

4. If they still don't refund your money and pay you compensation then immediately approach the consumer court;

5. You can claim compensation for the mental agony and loss suffered by you;

6. Also file a complaint against the builder under IPC for cheating and criminal breach of trust;

7. You can refer to the 2016 circular: http://www.redevelopmentofhousingsocieties.com/2-uncategorised/146-file-fir-against-builder-if-cheated-%E2%80%93-says-maharashtra-police.html

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Sir deny builder the amount of thirty lakh as it was never agreed, ask him vide legal notice for the possession.and registration of the flat as agreed and further pay for compensation on delay of possession. If he refuses file a.comsumer complaint before the national consumer forum seek the possession of flat along the compensation for delay alternatively refund of amount with interest and compensation for harassment and mental agony along with delay.

Also read the agreement carefully signed with builder thus it has any clause for alteration of area.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

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