• Builder is demanding more than agreed price

Hello sir,

Im Nik from Mumbai. 
I had purchase a flat in Mumbai. The booking was made at time of under construction and now building is almost ready.
Deal was done between me and their HOD Sales from Builder office.
Builder allotted me flat at affordable rate as my down payment was higher and loan was already sanctioned. So the agreed price was eg: 57 it was mentioned in allotment letter document. And builder mentioned the flat price eg: 60 in sale deed to show the government and bank he said.
But now at time of possession he is demanding according to sale deed price.
What can i do ? I have all the evidence and recordings. Will it help if file a case ?
Asked 5 years ago in Civil Law

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20 Answers

You need to file a consumer complaint or complaint with rera. They will give direction to the builder to provide you the same in agreed price

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Builder cannot demand more than agreed amount. In allotment letter 

 

file complaint against builder before RERA and seek orders to direct builder to execute registered sale deed at Price mentioned in allotment letter 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Act as mentioned herein above 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Forget RERA.

I often advise that Consumer Protection Act is more equipped to redress the grievances of the flat owners than the RERA.

The option of injunction or positive direction apart from granting compensation and damages is huge than RERA.

So proceed accordingly. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

If the sale deed is prepared for Rs.60/- it will be binding on you.  However, if the understanding between you and builder is for Rs.57/- then burden lies on you to prove the lesser amount and the reason why it is shown as Rs.60/-.  Litigation is a long drawn proposition, try to settle it outside i.e., across the table on mutually agreed terms.  If you file case, the Builder will defend that, due to increase in such and such thing it is increased from Rs.57 to Rs.60.  Better get it sorted out amicably.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Booking Form is a formal document, subsequent to booking there will be various changes i.e., additions / alterations etc., as such, there will be change in price mostly, upside / hike.

Further, if the amount is shown in sale deed will be supported by addition  / alterations made by builder, better you check this aspect and proceed.

You can take a chance by reaching out to RERA, if the builder comes up with version of additions / alterations, even RERA will not be able to guide.

Better  get it settled amicbly.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

You can demand an explanation in writing from the builder in this regard while informing him about the actual value that was agreed earlier.

If he is not responding properly nor reducing the amount of sale consideration, you can drag him to the RERA with a complaint against the builder for unfair trade practice.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You have an evidence of the sale consideration amount shown in the booking form.

Now the demand for escalated sale value is nothing but an act of cheating.

You can very well make a complaint with the RERA and seek relief and remedy for this.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

- As per law, a builder cannot demand more amount than that was fixed at the time of booking the flat. 

- Further , the Supreme Court, held that terms of a contract will not be final and binding if it is shown that the flat purchasers had no option but to sign on the dotted line, on a contract framed by the builder.

- Further , held that incorporation of one-sided clauses in an agreement constitutes an unfair trade practice as per Section 2 (r) of the Consumer Protection Act, 1986 since it adopts unfair methods or practices for the purpose of selling the flats by the builder

- Hence, the builder cannot bound you with his rule and regulations for extorting amount from you. 

- Since at the time of booking the price was already fixed , hence at the time of possession he cannot raise the price automatically on the garb that the Sale deed amount is more than the fixed price. 

- Send a legal notice , after mentioning details the price fixed , and thereby ask to deliver the possession and other all the documents ,

- If refused , then file a compliant before the Consumer Forum , and claim compensation as well. 

 

Good luck and dont forget to rating Positively. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Yes,Definitely. 

RERA would help you to pay the price as was agreed between you and Builder. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

File complaint in RERA, you will surely be helped.

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Yes you should immediately file a complaint against him before the consumer forum.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

This is a grievance wherein he is cheating you and hence file a case in the consumer forum.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

It's better you go to consumer court. That's better than rera

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Rera can help you and also you can go to consumer commission.

Regards

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

1. You fell in the trap of builder. One has to be really naive to expect that builder would not demand the amount mentioned in the agreement.

2. The biggest evidence is the agreement to sale where the price mentioned is 60. No recording can repel it.

3. Builder is entitled to claim the price mentioned in the agreement to sale.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

You can deny to fulfill the demand of builder in ground that proce mentioned in sales deed is more than what was mentioned in the agreement of sale and mentioned without your consent and on promise that you will not have to pay the extra amount mentioned in the sales deed.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

builder can not demand money other than what was agreed upon. Further they can not also unilaterally change the terms of the Contract. If any terms of the Contract is to be changed, it has to be agreed upon by both the parties and therefore their demand of extra money as well as change of exit plan is contrary to law and further amounts to deficiency in service. Therefore you can file a Complaint in a district forum.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

you can file complaint before Rera Or District consumer Forum. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

the builder may be fearing s.50C of income tax act

however if there is no underhand deal in this case, then parties must stick to the agreed price, even if it is less than the market price computed as at present date

the reason for the consideration being less than the market value can be stated in the sale deed

if the builder is not agreeable to this, then ask him to give you a side letter in which he would state that he will only take the agreed price as stated in booking form and not as per sale deed

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

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