Sale of Redevelopment flat
I have been presented a flat in Mumbai in newly build building which is part of redevelopment of building which was occupied by tenants. The old building was owned by Owner to whom tenant were paying the rent.
The owner transferred the rights to developer and developer build the new building under and received NOC from Mhada. The NOC from Mhada for redevelopment has listed one of the clause which restrains transfer or sale of flat for 10 years from the occupancy.
In the agreement between developer and original tenant, there is no mention on the period for sale of the property. However, NOC issued by Mhada has been attached as per of the agreement. In the NOC from Mhada there is mentioned a clause which refers to no transfer or sale for period of 10 years. Now, the original tenant has sold the flat to current owner and the Society formed has transferred the rights to the current holder on ownership. However, the same Mhada NOC with clause referring to no transfer for 10 years is also part of agreement between original tenant and current owner. Now, the current owner is proposing to sell the flat to me and I have been presented that this flat is ownership and not covered under redevelopment clause. I am taking loan and bank has raised question on the NOC attached to current owner purchase agreement with clause on transfer of rights. Society says that they have right to transfer the flat alloted under redevelopment on ownership basis. Please advice if society has right to transfer such flats on ownership basis to new buyers or not and should bank consider the viability of such option and grant loan? In case I purchase the flat, will there be any implication - fine/tax from mhada or any other authority. Thanks
Asked 1 year ago in Property Law from Greater Mumbai, Maharashtra
1) original tenant could not have sold flat to current owner in violation of MHADA rules that no transfers shall take place within period of 10 years
2) society could not have transferred flat in name of current owner in violation of MHADA. Rules
3) ask the current owner to obtain NOC from MHADA for sale of flat
4) don't purchase flat if bank refuses to sanction loan
1. While issuing NOC for redevelopment of the building, MHADA has clearly set the term restraining transfer or sale of flat for 10 years from the occupancy,
2. The said term encompasses both types of occupants being the fresh owners and the earlier tenants,
3. So, all the sales and subsequent sale of the flats of the said redeveloped building are not as per the terms set by MHADA,
4. It will not be prudent on your part tor buy the said flat.
1. No the flat cannot be sold or transferred now as it has been sold by the original tenant. The tile will not pass to you if your purchase the flat.
2. Avoid purchasing this property.