• How to get rights transferred from builder after purchasing the flat?

I purchased an under-construction flat in 2012 and got its possession in 2015. For purchase, I had executed registered 'Agreement to sale' with builder. Now the construction work is completed and the flats are all occupied, however the builder is intentionally delaying the society formation. He is also denying to execute a sale deed, claiming that society will be soon formed. Am I at risk of losing any rights if the builder continues to delay? If yes, what can be the alternate arrangement until the society formation is completed?
Asked 3 years ago in Property Law
Religion: Hindu

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15 Answers

Issue legal notice to builder to execute registered sale deed in your favour 

 

2) if he fails to do so file complaint against builder before consumer forum or RERA and seek orders to direct builder to execute registered sale deed in your favour 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Go for deemed conveyance with consent of builder as provided by notification issued by Government of Maharashtra on 27th September 2010 making amendment in Section 11 of MOFA Act and Rule 9 of  Rules 64. Make an application  in Form 7 to the District Dy. Registrar with Court of  stamp of  Rs.  2K enclosing following document…

1) Affidavit made before the Notary or Executive Magistrate.

2) True copy of the Society Registration Certificate. If it is an apartment then copy of the Deed of Declaration.

3) 7/12 extract of the land or extract of Property Registration Card.

4) Registered agreement copies of all flats/shops (All copies of the agreement which were executed)

5) List of members in prescribed format.

6) Copy of the Development Agreement.

7) If there is Power of Attorney then its copy.

8) Copy of the Notice issued to the original owner or developer for doing conveyance.

9) Details of corresponding address telephone number etc. of the original owner or developer.

10) Search Report of the land.

11) Copy of the Non-Agricultural Order.

12) Certificate of the exclusion from Land Ceiling Act (U.L.C.) Certificate)

13) Copy of the sanctioned plan of the building. 14) Land Measurement Map/Architect’s Certificate.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

If builder does not form society then flat purchasers can themselves form a society if the minimum number of members required for society formation are there 

Sale deed is not required 

The builder has to register a conveyance in favour of the society for which too the society (after its formed) can apply for deemed conveyance under Mofa 

You are not losing on any rights 

Your rights are secured by the registered agreement for sale with the builder 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

The formation of association has nothing to do with the execution of the registered sale deed in favor of the purchaser.

The builder has to transfer the property in favor of the purchaser by executing a registrar sale deed.

If he is not doing it then the buyer may approach court with a suit for specific performance of contract against the builder. 

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

Society formation has no connection whatsoever in the promoter executing and registering the sale deed in favour of a flat-owner. Only for the purpose of owning the common assets and managing them has the society to be formed. Demand immediate execution and registration of the sale deed. In case of default, lodge a complaint with your State RERA Authority for redress.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

Dear Client, 

The title of the property still remains with the developer, unless a sale deed subsequently has been executed and registered under the Indian Registration Act. If he is denying willfully then you can file a complaint before the consumer forum against the builder for deficiency in service and unfair trade practice. 

Thank You

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Send legal notice and file consumer complaint

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Agreement of sake would operate as sale deed of full consideration has been paid and possession delivered by seller 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Section 4 of MOFA requires a builder to execute an agreement for sale containing inter-alia the terms as prescribed therein with its purchasers upon receipt of consideration as stated therein with respect to the apartment agreed to be sold by the builder. Thus there is no requirement to execute a sale deed, once the agreement for sale has been executed.

Please note that it is only in this situation, that is upon purchase of a flat directly from the builder by executing a MOFA agreement, in accordance with the provisions of MOFA that it is not necessary for you to execute a sale deed subsequent to the execution of the MOFA agreement.

In the event that you are not purchasing a property from a builder, and are purchasing the property from a prior owner of the flat, that is either an individual or a company, it is essential that you execute a deed of transfer (or a sale deed) after the execution of an agreement for sale by the transferee and the builder. This is imperative as the deed of transfer will be your title document. 

Further you must ensure that on completion of the construction of the building and upon such number of persons as prescribed under section 10 of MOFA having purchased the flats, the builder takes steps to constitute a society or any other organization as contemplated under MOFA agreement. You must also ensure that upon formation of such organization, the builder duly executes a deed of conveyance within such time as contemplated under the MOFA agreement and if not prescribed therein then the time as prescribed under section 11 of MOFA in favour of the organization formed conveying the land on which the said building has been constructed along with the building in favour of the organization. It is also very critical not to take possession of the said apartment without an occupation certificate being obtained by the builder. You must also ensure that upon formation of the society, a share certificate is issued to you by the society stating that you are the owner of a certain number of shares. The said share certificate is to be signed by the chairman of the newly formed society.

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

Dear Client,

Please note that it is only in this situation, that you purchase a flat directly from the builder by executing a MOFA agreement, in accordance with the provisions of MOFA then it is not necessary for you to execute a sale deed subsequent to the execution of the MOFA agreement.

Thank You

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

The title and ownership can pass only if a sale deed is executed and registered. The reasoning given by your builder is absurd.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations


Dear Sir,
If you need any further assistance.You can approach me through Kaanoon or LinkedIn.

 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

- If the construction has completed , the builder is bound to execute Sale deed in your favor and to give physical possession of the flat. 

- Further for delay in giving possession and execution of sale deed , you can claim compensation from the builder 

- Further, formation of society is not related with the execution of ownership paper /sale deed. and without a sale deed in your favor , you cannot claim a right over the flat. 

- You can send a legal notice to the said builder , and if no response then approach the Consumer forum . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Sale Deed and Society are 2 different things.
First immediate is sale deed even though you are protected by Agreement of Sale.


Immediately issue legal notice to builder to register sale deed in your favour.
All flat owners should do it.

 

if builder fails to do it then you all can file complaint against builder before consumer forum or court for specific performance of contract (agreement of sale)and seek orders to direct builder to register sale deeds in flat owners favour.


afterwards all flat owners can go for society registration.

Ankur Goel
Advocate, Bangalore
454 Answers

Ok, in this case, builder is correct. 

No need for sale deed. 

 

All flat owners can proceed together to form association. 

Ankur Goel
Advocate, Bangalore
454 Answers

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