• Who have to pay development charges after selling land

We bought residential plot in a venture in hyderabad almost more than 20 year ago. We received venture notices from the venture person (from whom we bought) to pay development charges.of venture. But we did not pay anything as there is no development in the venture. Recently we are in the process of selling plot and told to the buyer regarding development charges and he agreed to buy it. In future, does venture person asks us to pay development charges even after selling plot.Who have to pay

I am planning to get the written letter from buyer on development charges that we are not responsible for charges in future. Is the letter required from the buyer? Who have to pay development charges after selling land
 development charges -Seller or Buyer ? Please clarify my questions
Asked 6 years ago in Property Law
Religion: Hindu

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14 Answers

There should be clause in sale deed that development charges would be paid by buyer only 

 

2)you are  not liable to pay after execution of sale deed 

 

3) mere letter is not sufficient 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

In sale deed condition that any development charges prior to sale or after same has to be paid by the current buyer and seller has no responsibility of the same. 

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1. See it is better to add in sale deed.

2. Yes.

3. Yes you can separately also ask for such letter. Further once you sale they will ask from new buyer.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Sir,

     After sell, all dues, expenses is transferred to buyer itself.

     So in your case development charges should be paid by buyer itself.

     Only thing you can do, clearly mentioned in your sale deed.

     mere letter is not sufficient means.

      yes you can.

      You can take for your safety, no problem in this.

Tarun Agarwal
Advocate, Jaipur
768 Answers
3 Consultations

To protect your interest there should be clause in sale deed that seller is not responsible for payment of development charges 

 

2) in event any liability arises of payment of development charges shall be borne by buyer only 

 

3) no need of any letter from buyer 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. Once you sell the property then all your rights and liabilities over it gets relinquished and the same is developed upon the buyer unless there is stipulations on the contrary.

2. In other words if in the sale deed you do not take the liability of past, present or future development charges then the buyer alone is responsible for it and hence there is no requirement for any letter on this.

3. However to be on te safer side on this account you may specifically mention the clause absolving your liability to pay such charges in the deed of conveyance itself.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

The development charges are levied when there is an express term in the agreement. If you had these terms and conditions in the agreement when you bought the land then the person buying it from you should also pay as and when there is development.

In the agreement you should specifically mention this aspect and then go ahead.

Regards 

 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Mention in the sale deed, if any development charges due or payable shall be borne by buyer. Generally, before sale charges if any due borne by seller but if buyer agree in sale deed if will be responsible than you will  exonerate.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

It is paid by developer if the seller is the developer then he has to bear it. If buyer agrees to pay the same it's beneficial to seller. But ideally it is paid by developer

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1.  "IF" at all any legitimate development charges are payable, THEN it shall be payable by the actual owner of the property as on date of demand.

2.  The Sale Deed should have a specific clause that development charges shall be payable by the new owner.  This clause would absolve you from this liability and the new owner becomes bound by this liability.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Dear sir,

Developers have to pay 'external development charges', or EDC, to the government for civic amenities such as roads, water/electricity supply, sewerage and drainage. The EDC is fixed by the local authorities and is passed on to buyers in proportion to the built-up area of their properties.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

Dear

You have to make an agreement regarding payment of development charges by buyer of the plot. 

The buyer who is buying the plot is liable to pay development charges.

Yes you need to get the agreement registered or you can add clause regarding development charges in the sales deed. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

If the dues are pending against the original buyer then he have to pay, however if the property has been bought by the new buyer then he will pay it and recover it from his seller.

The buyer is not obliged to give any such letter, the seller cannot shed away his liability in this manner.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

No such recital in the sale deed is maintainable in law.

The buyer may pay the old dues but he cannot be held liable for the arrears hence he may sue you i.e., the seller for recovery of the amount paid by him.

As a matter of fact if the claim is beyond three years from the date of claim, it may not be maintainable owing to the limitation laws.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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