• Builder insisting to register property with their own lawyer

Hi,
1). I am about to purchase a property from a builder.
2). However the builder is insisting to do the registration from their own lawyer, who is charging 1 percent more than my lawyer. 
3). When I denied to do the registration with the builder's lawyer, the builder threatened me to cancel the entire property dealing. 
4). The builder also threatened to return 70 percent of the advance amount as the remaining 30 percent would be forfeited as a deal cancellation charge.

Please advise me how could I take legal action against such unlawful demand of builder.
Asked 4 years ago in Property Law
Religion: Hindu

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15 Answers

The demand of the builder is illegitimate. You may choose any advocate as per your choice to walk you through the process of execution and registration of the sale deed. In fact, since you will be bearing the lawyer's fee, this choice lies predominantly with you.

Builder cannot forfeit a penny in case he chooses to cancel the deal for the aforesaid reason and in case he does, send him a legal notice followed by a suit

Vibhanshu Srivastava
Advocate, New Delhi
9427 Answers
245 Consultations

5.0 on 5.0

You Can File Complaint Against Builder.

Complaints can be filed under Section 31 of the Real Estate (Regulation and Development) Act.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

You send a legal notice and convey your willingness for registering the property . Also mention about the preparation of registration deed and its execution as per your wish. Also mention about the rate of charge as demanded by the lawyer of builder and your lawyer .Definitely you can reply . If the execution is not done by the fault of builder you can claim damages and return of advance amount .

Ajay N S
Advocate, Ernakulam
3991 Answers
93 Consultations

5.0 on 5.0

1) builder cannot arbitrarily cancel the sale deed

2) you can file complaint against builder before consumer forum and seek orders to direct builder to execute regd sale deed in your favour

3) also claim litigation costs and compensation for mental torture undergone by you

4) no need to pay exhorbitant costs of his lawyer

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

Hi, the builder actions are unlawful and not justified .. It is advisable to settle the matter amicably .. If no settlement is made you can file a complaint with RERA for the refund of amount alongwith compensation.

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

This is not legal at all, the builder has no right to force you to register the property through there lawyer and neither can forfeit a rupee from.amount paid. Serve builder a legal notice to go ahead with the registration or in case you shall take action against the builder legally.

If he fails to do registration then in that case either a RERA complaint can be filed.or.alternatively complaint with the consumer court can be filed.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hi

1) You are entitled to have your lawyer( it is your fundamental right under Constitution) for legal vetting of the title deeds and also at the time of registration. Article 21, 22(1), 39A are fundamental rights of citizens and right to legal aid is enshrined in these articles.

2) Builder cannot enforce upon you to consult with a lawyer of his choice.

3) It looks like a ploy by the builder to deviate from his deliverable's(handing over possession, registration) and instead divert you towards non -core issues

4) Please issue written Notice / mail to builder that

a) He cannot refrain you from engaging the services of a lawyer of your choice and

b) The builder shall be solely responsible for any costs if he chooses to arbitrarily cancel the agreement and

c) You are entitled to claim 100% of monies paid by you along with 18% interest should the builder unilaterally cancel the agreement.

d) Direct the builder to complete his part of contract (registration and possession etc) as per time lines agreed.

Rajgopalan Sripathi
Advocate, Hyderabad
2169 Answers
394 Consultations

5.0 on 5.0

1. Do not worry as if you have the sale agreement done and is ready to make the payment the can not cancel for not getting registration done through his lawyer.

2. The extra money you are asked to pay is meant to be for the developer. So refuse to make this payment.

3. Send a legal notice asking for date to make registration and to pay him balance payment.

4. If he does not agree then you can file the case before the consumer forum wherein you will get all necessary reliefs.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. The builder can not insist for engaging his lawyer for registering the sale deed in connection with your flat.

2. Make sure this term is not mentioned in the agreement for sale which you had executed with the builder.

3. If you have not agreed to get the sale deed registered by his lawyer by paying a fixed amount to him, you can file a complaint case before the State Consumer Dispute Redressal Commission, W.B., (since the value is more than Rs.20 lakhs) praying for a direction upon the builder to register the flart through your lawyer, pay the damage and cost.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

Dear Client,

Issue him legal notice, sitting above issue, and tell him straight that your case will be dealt by your lawyer and forcing you for illegal termination of contract and lawyer of his choice with high fees, amounts to cheating and fraud. If more pressure than you will be constrain to file FIR and complain to RERA and file consumer complain.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

You do not have to purchase a property under pressure.

What is a lawyer doing for registering a sale deed when the parties to the sale are perfectly okay without any legal hassle involved in it?

You can communicate the decision to cancel the booking due to the incompatible reasons and unacceptable terms of the builder and demand refund of full booking amount with interest through a legal notice.

Thereafter you may drag him to the consumer forum for relief and remedy besides compensation.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

Brand name and dimensions of accessories are not mentioned in sale agreement

2) request builder to give in writing on his letter head brand name and measurements of accessories to be provided by him

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

1. Sir you have raised a valid concern a schedule along the sale agreement can be made mentioning all these details and quality for the purpose of assuring the builder does not provide you low quality products. Brand names like 2-3 can be specified along with the dimension the quality

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

It depends on the agreed conditions mentioned in the sale agreement.

If he is not abiding by the conditions and is using the sub-standard items, you can issue a legal notice about this demanding to use only standard items as per the agreement, and then drag him to consumer court for relief and remedy including compensation for the mental stress and agony you suffered.

.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

1. The brand name of the appliances and cost/quality thereof have not been mentioned any where in the agreement for sale signed by both of you.

2. It is also a fact that low quality/cost of the appliances have been mentioned either giving him liberty to fix such appliances/fittings.

3. It will be prudent on your part to talk to him over phone on the said topic and get him admitted over phone that he had assured you to fix high quality fittings (preferably mentioning the names of the brands and sizes) which he still assures you. Audion record the said conversations.

4. Thereafter send him a letter by speed post putting on records his said confirmation about the quality/brand of the appliances to be fitted in your flat.

5. You can take the developer to Court if he fails to comply with the said assurances given to you in future.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

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