Society cannot demand transfer charges for first sale made by builder
2) ask the builder to resolve the issue with society
My brother who is a citizen of Canada had purchased an office premises in a commercial building in Navi Mumbai about six to eight years back. He has paid the amount to the developer. However, he has still not paid stamp duty and registered the office as the builder has left a lot of incomplete work. Even the society was not formed by the builder and therefore buyers joined together and formed the society about four months back. The developer has put his company name in all unsold offices, including the one purchased by my brother (as it is still not registered) during society formation. And I suppose this is normal. Now my brother is coming to India to register the property. However, the Secretary of the Society is demanding Transfer charges. Can the society demand transfer charges for the first sale. The builder has given a letter addressed to the society stating that he has sold the office to my brother and has asked the society to include his name. Please advice.
Society cannot demand transfer charges for first sale made by builder
2) ask the builder to resolve the issue with society
1. To society to facilitate the change of name of subsequent sale by te society members can demand a fees to run its office.
2. However he same can never be exorbitant so as to make it look it a commission of the sale .
3. So if the mount claimed by the society is huge you can refuse to pay the same.
4. otherwise pay the money as claimed its fees and get the property registered in your name.
See this is not transfer the brother is first allottee so the transfer charges shall not be applicable. Your brother can talk to society chairman also of he fails to listen complaint with the registrar can be filed.
All transactions pertaining the property happening before society formation cannot be taken undue advantage of by society to demand transfer charges for all such transfers
Your brother can take a search report from sub registrar office to show that prior to him the office was not sold by the builder to any party and even the builder has stated in his letter that the office was sold directly to your brother only
So question of charging any transfer fee does not arise
1. Your brother has no title to the property in question as sale deed has not been executed. He just has possession of it.
2. The society cannot execute the sale deed in favour of your brother unless it is holding a GPA executed in its favour by the builder. Society cannot demand transfer charges as there is no transfer.
3. Builder seems to be playing fraud.
Generally for the first sale the society should not demand the transfer charges because the society was formed based on the members who were first purchasers, hence the demand made by the society is illegal.
You can issue a legal notice to the society about their demand as illegal and contrary to the prevailing law of the land, let them refuse to register the name after which you can approach consumer court for deficiency in service.
In case of a new property the first owner of the property is not liable to pay any society transfer charges it is only applicable in case of resale and there is a provision of. 5% of the sale consideration to be paid to the society for the purpose of transfer after property to a new property owner so at this point of time your brother is not liable to pay any society transfer charges because he is not selling any property
The builder may not have goven the money and hence the other person may be demanding transfer charges. What has transpired between the builder and the society should first be found out and then future course of action must be taken.
Transfer charges applies when it is second sale. You are first owner and only registration is left. NO cahrge payable.
Do`t bother about society, just register sale deed which is must thing. Society can be manage later.
No society cannot charge tranfer charges from your brother.
If secretary insist on payment of transfer charges then you can complaint against secretary to Assistant registrar coop societies against secretary for demanding illegal transfer charges.
first transfer is free and rest is chargeable depending on the resale value of the concerned property.
1. Society is NOT entitled for any type of Transfer Fees or Service charges, for unsold stock of properties, as on date of Society Registration. There are several court orders to this affect.
2. Society has to compulsorily grant membership to the new property owner whose sale deed gets registered after date of society registration certificate. This is without demanding any type of Transfer Fees or Service charges.
3. Such type of grievances can be filed in the local consumer court, for society's negligence, deficiency, harassment and delay tactics. Appropriate compensation /damages /financial losses can also be claimed.
This is my response to you:
1. Your brother will not be required to pay the transfer charges;
2. This is because the builder has directly allotted the property to your brother;
3. In this scenario, the society need to ask for transfer charges;
4. The society is formed after your brother was allotted the property;
5. The society can maximum ask your brother to purchase the shares on the share certificate;
6. Consult a local lawyer, discuss full facts and take steps.