• Does the terrace rights belong to the builder if it is mentioned in the sale deed?

Hi Legal Experts, 

I recently purchased a resale flat in Hyderabad. Built in 2016, the apartment complex is in a prime location on a 100ft main road and currently has 5 floors with 30 flats in total. There is a registered association of all the flat owners as well. My flat was originally purchased by Mr.X from the builder and as I was going through their sale deed, I noticed the following clause. 

9. The VENDEES agrees with the co-owners to avail the common areas and facilities including corridors, stairs, peacebly with other occupants of the flats and not to claim exclusive terrace or other separate rights in common areas. The terrace rights lies with the Vendors/Builders & Developers and the VENDEES have no rights on the terrace. 

Does this mean, the owners association doesn't have exclusive terrace rights? Is it legal for the builder to claim terrace rights even after selling all the flats? As far as I know, the terrace belongs to all the occupants or the association. Based on this clause mentioned above, can the builder build another floor at a later stage (if permission is accorded by the authorities). The builder also constructed a pent house without permission and rented it out. What should the association do to set this right now? Please provide your valuable suggestion.
Asked 3 years ago in Property Law
Religion: Hindu

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8 Answers

1) terrace forms part of common area for benefit of all members 

 

2) builder cannot claim exclusive rights on terrace 

 

3) any such clause in sale deed would be valid as contrary to law 

 

4) for construction of additional floor consent of all flat owners would be necessary 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Your understanding is correct terrace rights  belong to all residents, no one can claim exclusive rights  over terrace. This is specifically provided under RERA, though the  project may not be registered under RERA, its rules apply to all projects. Association can seek declaration  to the  effect that it belongs file a suit in civil Court of Secunderabad or Hyderabad depending on location of project.  


You can also get the  penthouse demolished by approaching the  Court as it must be against the  sanctioned plan.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Terrace is common area and association has all the rights in the same

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

The terrace and other common areas are common to all the members of the associations and the association of the apartment is having rights and control over all the common areas of the complex. 

A terrace or rooftop is a common area of in a residential society which is for the enjoyment and benefit of all its members. Although it has been seen that many developers resort to selling or giving exclusive terrace rights on payment, the practice is illegal.

A community hall, a play area, a garden, a stairway, a terrace and elevators are all shared areas and have to be made accessible to all the apartment-owners without any ownership issue. As any repair, replacement and maintenance cost of such common areas has to be borne by all the flat owners collectively, likewise, any income or profits arising from the use of such common areas have to be distributed evenly among all the flat owners.

It has been seen that many buildings have terraces on certain floors, below the main terrace on the top floor. Developers often hoodwink the residents and sell these terraces to the adjacent flat owners thereby making huge profits. However, this too is against the law. A terrace that is not accessible from the common areas and is attached exclusively to a flat can only be sold to a flat owner but all other terraces are for the common usage.

It is for the same reason a terrace is not included in the Floor Space Index (FSI) of an apartment. Reason: it cannot be bought or sold.

 The residents can complain against the developer by approaching the Consumer Forum

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. Terrace area comes under common area and belongs to all the flat owners

2.  The Association has to file a complaint with the Registrar of Co-operative Societies as well in the jurisdictional Consumer Forum.

3.  If the builder starts construction on the terrace, let the Association approach the jurisdictional Court to stop the construction by bringing Injunction Order.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

From the facts narrated, it is clear that the promoter has reserved the terrace rights for further construction. The association may take up the issue of unauthorized construction of the penthouse with the State RERA and the local planning authority separately.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

Dear Client,

A Terrace or rooftop is a common area in a residential building which is for the enjoyment and benefit of all its members. Hence, the terrace is a common portion and does not belong to the top floor owner. - The builder/developer has no right to sell the terrace

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

- A common terrace is a public space that is accessible to everyone living in the society and the responsibility of its maintenance is shared by all the residents. 

-  A builder does not have the legal right to sell an area which is shared by all members of the housing society, and any flat owner cannot claim ownership of the terrace and deter other owners from using the same. 

- Further, no construction works can be carried out on the terrace without the consent of all co-owners of the building.

- Further, as per law, all open spaces in a building, including the terrace is a common easement for the benefit of all the members who are entitled to enjoy the same. 

- Further, as per rule , the Association  shall  frame  rules,  regulations  and  procedures  for its common areas and facilities as well as frame guidelines of restrictions and measures designed to prevent the unreasonable and improper use of facilities and common areas  which  will  interfere  with  the  peaceful  occupation  of  units  by  respective  Owners  / Residents conducive to day to day living environment. 

-  Since, a terrace is a common area of a residential society which is for the enjoyment and benefit of all its members, hence a society can frame the rules for the benefit and enjoyment of apartment’s owners. 

- Hence , the said construction by the builder is illegal , and the society can take legal action against the builder.

- The society can give a compliant before the Municipal corporation for fixing the liability and to demolish the said extra construction over the building without the consent of the flat owners. & the Society.

- If non response, then file a compliant before the Consumer forum against the said builder. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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