• Stamp duty not paid by original owners

A group of people formed a Cooperative Housing Society and purchased a plot, with the Developer & Promoter as President & Secretary of the Society. Then it was assigned to a Builder for construction. Flats were allotted to members of the Society in 1999 & Share Certificates issued. Possession of flat was given in 2001. Part OC received. Stamp duty & Registration charges not paid for the plot or for flats by the original owners. No Agreement for flat was executed between members & the Developer/Promoter, since members are co-owners of the plot. There is a legal dispute between the Builder & Developer/Promoter/ Society. B & C wing were constructed. A wing was not.
I bought the flat on resale in Mar.2006 and paid the correct amount of Stamp duty & Reg. charges thereon. Now the Society wants to apply for deemed Conveyance, so Stamp duty needs to be paid. They are insisting that since I am the present owner of the flat I have to pay the Stamp duty dues along with penalty which is due from the original owner, even though my Agreement for Sale clearly states that any dues arising in the future which pertain to a date prior to the date of handing over possession of flat, shall be paid by the Seller/Transferer. 
I want to sell this flat now. Do I have to pay these Stamp duty dues+penalty which was not paid by the original owner? Based on our Agreement, how can I ensure that she pays her dues?
Asked 6 years ago in Property Law
Religion: Hindu

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9 Answers

Issue legal notice to seller to pay outstanding stamp duty with penalty within 15 days of receipt of notice 

 

2) if he fails to pay sue  the seller to recover said amount as per indemnity clause in sale  deed 

 

3) you can make payment of stamp duty dues 

Ajay Sethi
Advocate, Mumbai
99790 Answers
8147 Consultations

You can cancel the booking seek refund of money paid by you on account of delay in delivery of possession 

 

2) if builder fails to refund file complaint against builder before RERA and seek orders to direct builder to refund your money with interest 

Ajay Sethi
Advocate, Mumbai
99790 Answers
8147 Consultations

1. No you are not liable to pay the stamp duty and penalty which arises due to non payment of stamp duty by original owner of flat. 

2. You should send a legal demand notice to seller for paying the stamp duty and penalty as mentioned in you agreement. 

3. If she refuse to pay the stamp duty and registration fee along with penalty then you can file suit for specific performance against seller for payment of dues. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

You have to inform this fact to previous owner that pending dues which not paid.

you can issue a legal notice to previous owner to pay out standing stamp duty within 30 daysof  receipt of notice. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

you can definitely get back your money along with interest . You have two options to seek your money. First you can prefer a complaint before the consumer forum depending upon the territorial and pecuniary jurisdiction and the other option is arbitration if you have an arbitration clause in your agreement

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Since you are the not the original owner, you are a subsequent or second buyer  and also since you have have already paid the stamp duty for getting the property registered on your name, you can give a copy of the the registered title deed in your name to the society and refuse to pay any stamp duty on the conveyance deed, you can also inform that you dont require the conveyance deed to be applied on your name.

Conveyance Deed is a document executed to transfer the title of land and building in favour of Society. Meaning of Deemed Conveyance. The Promoter (Builder/ Developer) is legally required to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers.

Conveyance is the ownership right to the building and the plot on which the structure is built. Deemed conveyance is the one obtained through the competent authority, if the developer doesn't give it

It is mandatory for land-owners or developers to convey the title of the plot within four months of the formation of the housing society. In many cases, the builders fail to convey the title of properties to the housing societies, in the hope of availing more floor space index (FSI) that may become available in future, or to avail the benefits accrued to them in case the property is redeveloped.

 

If the builder fails to convey the property, the Maharashtra Ownership Flats Act (MOFA) allows societies to apply for DC. However, having OC was mandatory and was insisted upon by the officials of the cooperative registrar’s office. OC is given only when the building is complete in all respects and has complied with the mandatory norms laid down by the government authorities to make it ready for occupation. Since most of the builders abandon the projects before complying with the norms and conditions, OCs are not given to the societies. Developers just hand over the possession and exit the project, leaving the residents high and dry.

 

However now, the DC will be issued even if housing societies have submitted such documentary evidence as the formation of the society or the payment of property tax by the society.

 

 

In your case you can refuse to pay the dues that are to be collected from the builder or the previous owner, you may ask them to give it in writing to which you can give a legal reply notice and can drag them to court or challenge their claim in the court of law.

T Kalaiselvan
Advocate, Vellore
89989 Answers
2495 Consultations

If you do not want to continue with the booking for the delay as reason, you may communicate your decision to cancel the booking due to inordinate delay in completion of the construction and demand the refund of booking amount without any deduction and along with the interest on the booking amount since the cancellation is not your fault, the communication may be sent in writing by registered post.

You can wait for the time stipulated in the notice and then if you dont get any reply or compliance, you may approach consumer forum for relief and remedy including compensation for the tortures and deficiency in service.

T Kalaiselvan
Advocate, Vellore
89989 Answers
2495 Consultations

AS of now you are liable to pay and can recover from previous owner. Issue legal notice to buyer either to pay interest till possession deliver on future date or refund with interest due to delayed possession. If no result,  Complain to RERA, fastest recovery. Can also file consumer complaint for compensation.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

You can file a suit of specific performance if the said conditions are agreed in writing between parties

Prashant Nayak
Advocate, Mumbai
34522 Answers
249 Consultations

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