• What is section or clause in RERA law for first transfer free

What is section or clause in RERA law for first transfer free.Please help to understand i have a flat in Noida ext and like to sale before registry but builder asking to transfer fee per sq feet.
Asked 4 years ago in Property Law
Religion: Hindu

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12 Answers

No such provision, every transfer of ownership bears stamp duty but builder is not entitle to claim any some.

Sale deed can execute directly between builder and third party, all you need to surrender your booking with an agreement to transfer third party.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

hello

There is no legal basis on which a builder can levy transfer charges on the apartment owner. However, numerous complaints have been brought to the forefront related to illegal demand of transfer fee by the builder. According to complainants, the builder succeeds to exert influence as banks and home financing companies demand that the buyer procure a no objection to mortgage certificate from the builder, failing which the loan cannot be availed. Also, the builder takes on the responsibility to form society or condominium and can manipulate undue influence by leaving out a particular owners name as a member of the society. transfer fee to builder is illegal because It violates the Transfer of Property Act, 1882; which states that a transfer of property, passes forthwith to the transferee, all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof. According to the Act, the owner alone holds the full right to property and the builder has no right, title or interest over the property post registration of the property in the name of the owner.

regards

Rahul Mishra
Advocate, Lucknow
13754 Answers
65 Consultations

5.0 on 5.0

there is no such section in RERA

it is purely contractual between the builder and purchaser

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

thats what i said

if there is an agreement between builder and purchaser that if before the flat possession is handed over to the buyer, he wishes to transfer his interest to a third party, then the buyer will have to pay transfer fee to the builder at the agreed rate per sq.ft.

therefore if before the registration of agreement or handover of possession, the buyer wants to sell his right in the new flat which will be allotted to him, he will have to pay the transfer fee of the builder as agreed in the allotment letter or booking form

the distribution of transfer fee between the buyer and the party who wishes to buy from the buyer, is also contractual

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

Its not opening, well any transfer of ownership above Rs. 100 requires compulsory registration and stamp duty paid,

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Builder cannot demand transfer charges once he has sold the flat by registered sale deed

There is no such provision in RERA fir payment of transfer charges to builder on resale of flat

Ajay Sethi
Advocate, Mumbai
87892 Answers
6207 Consultations

5.0 on 5.0

if There is clause in your agreement that transfer charges are to be paid builder woukd refuse to transfer flat in name of third party until transfer charges are paid

Ajay Sethi
Advocate, Mumbai
87892 Answers
6207 Consultations

5.0 on 5.0

Sir In RERA there is no such provision that builder shall charge the transfer charge on further transfer and further no such law first transfer is only free.

This is purely contractual between the party and builder if such condition in Builder buyer agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

The link cannot be accessed by us and answer cannot be seen there might be possibility it is answer in respect of the agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

hello

I am talking about the law as it is. in practice, it may well be possible that either people don't know the law or they don't follow it. therefore I stand by my advice. this practice should be challenged.

regards

Rahul Mishra
Advocate, Lucknow
13754 Answers
65 Consultations

5.0 on 5.0

There is no legal basis on which a builder can levy transfer charges on the apartment owner.

The builder succeeds to exert influence as banks and home financing companies demand that the buyer procure a no objection to mortgage certificate from the builder, failing which the loan cannot be availed. Also, the builder takes on the responsibility to form society or condominium and can manipulate undue influence by leaving out a particular owners name as member of the society.

It violates the Transfer of Property Act, 1882; which states that a transfer of property, passes forthwith to the transferee, all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof. According to the Act, the owner alone holds the full right to property and the builder has no right, title or interest over the property post registration of the property in the name of the owner.

2. It violates the Indian Contract Act, 1872. It is an extra contractual demand made by the builder.

As per RERA:

In case of not adhering to the rules, the builder stands not only to lose the registration of the project too but may also be punishable by imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the real estate project, or both. Some states have, however, compounded the offence to avoid imprisonment of the developers.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

Transfer charges by builder cannot be equated with the cooperative society’s share transfer fee. A cooperative housing society is the legal owner of the building and the plot of land and the buyer is only a share holder. A builder has no rights over the ownership of the buyer’s property and hence if the buyer wants to sell the property off to a third party, then no payment can be demanded on the part of the builder, hence it is illegal to demand the same by the builder.

The builders threaten that upon non-payment of transfer charges, the buyer would not be able to sell off the flat. This is a punishable offense under Section 384 and 385 of Indian Penal Code (IPC).

The undue influence exerted by the builder is prohibited by Competition Act, 2007. Imposition of unlawful transfer fees by builders is deemed ‘abuse of dominant position’ as defined under section 4 of the Act.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

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