• Resale of under construction flat in Mumbai

Hi There,

I'm planning to purchase a Flat in Mumbai in an Under Construction Building from an Investor. The Investor so far just has an allotment Letter which was issued to him by the builder in Nov-2010. The process that he has proposed is as follows:

Step 1 - Investor/ Seller enters into a bipartite agreement with Builder and register's the property under his name.

Step 2 - Investor/ Seller enters into a bipartite agreement with me and we register the property under my name. (As the stamp Duty paid by the Investor on his agreement is less than a year old, I will get the full offset of the stamp Duty paid by the Investor)

What are the other considerations that i need to keep in mind ? also, In future if i have to sell the property do i still need builder's consent ?

Please suggest..

Thanks
Asked 1 year ago in Property Law from United States
Religion: Hindu
1)let the investor enter  into sale deed with the builder and have flat registered in his name 

2) you can then purchase flat from the investor 

3) you should check whether building plans have been sanctioned by muncipal corporation . 

4) check whether title  of builder is clear and marketable 

5)obtain no dues certificate from  builder and NOC for transfer of flat by investor in your name 

6) check transfer fees levied by the builder . it has to be paid by seller 

7) you will have to  obtain builder consent if you sell the flat in future .

8) in case cooperative housing society is formed by flat owners you would need their consent 
Ajay Sethi
Advocate, Mumbai
23165 Answers
1216 Consultations
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Buying a property which is still under construction that too from the original allottee is a complicated issue.  As a homebuyer, you need to run many checks on the property you are eyeing. Unless buyers are diligent and ensure that the property they are purchasing has no encumbrances , they can easily land in trouble. When buying a property, no amount of scrutiny is enough. It always pays to be cautious.Property Sale Agreement is most important document. It is different from Sale Deed though in some cases Sale Agreement is registered as Sale Deed. Sale agreement contain agreed upon Terms & Conditions between Seller & Buyer for the sale of property. 
Some of the most common reasons for legal disputes are

(a) Property was transferred under force/influence/coercion

(b) Legal heirs of Seller claim their right on property.

 Do not be impressed by those fringe attractions that builders dole out to impress the potential buyers. After identifying the property, look if the builder has constructed any apartment nearby/surrounding that is already occupied. Go..talk to people find out how genuine this builder is.This gives you a feedback how genuine and chalu the builder is.Read Agreement carefully before signing itAn Under Construction on the other hand is cheaper but other than the risk you also have to wait for the unit to be complete. If one has enough fund for the Ready to Occupy option, people prefer it.Before making the buying decision decide on the budget and strictly stick to it.Do not get tempted by up selling.To be very careful of the person you are dealing with in case of non branded flats/homes because a new buyer can easily be caught in the nexus of land mafia which are obviously gundas and if something or the other goes wrong you cannot do a thing about it.There are instances of some properties being sold multiple times and also illegal land grabs/kabjas.







What are the other considerations that i need to keep in mind ? also, In future if i have to sell the property do i still need builder's consent ?
If you have entered into a tripartite agreement with the builder as well as the buyer due to under construction stage, in the same stage you may hve to take his consent to sell the property.
T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
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1. After the sale deed is executed in favour of the investor/seller he does not require to enter into an agreement with the builder to be able to sell the property to the prospective buyer. If his title is free and marketable he can directly execute the sale deed in favour of the prospective buyer.

2. The seller can directly enter into an agreement with the prospective buyer to sell his property and then follow it up by executing the sale deed in favour of the prospective buyer.

3. It may be added that unless the occupancy certificate in respect of the building has been obtained it will be unwise to purchase the property. Mere allotment letter does not permit the delivery of possession.

4. The consent of the builder will not be required after the title is transferred to your name.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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1) all ayment so should be by cheque only 

2) don't make any cash payment to investor 

3) you can opt for second option ie tripartite agreement 

4)?wait for receipt of approvals by municipal corporation for construction above 16th floor 

5) we cannot say how long it would take for builder to obtain approvals from BMC 
Ajay Sethi
Advocate, Mumbai
23165 Answers
1216 Consultations
5.0 on 5.0
The proposals what you have mentioned seems to be sound enough for going ahead, however there is nothing wrong in taking a cautious step especially taking a second opinion from a local lawyer by paying his fee so that he will be able to detect any hidden danger out of the papers submitted before him in this regard. 


Various stages under Slum Rehabilitation Authority:

commencement certificate to the first building for work upto plinth are processed
After demolition of the structures, work upto plinth is completed.
	After checking the plinth dimensions, further permission to carry out construction beyond plinth is granted.
Plans for the further buildings both for sale and rehabilitation are then approved.
Building permissions for the sale buildings are given in the proportion of the permissions given to the rehabilitation buildings.
	Upon completion of rehabilitation building/ wing, list of allotment is drawn up. The allotment is done in the joint name of the head of the household and the spouse.
	Building completion certificate is submitted by the architect.

Further construction of the remaining building/s is then taken up.
	Further building permissions as well as occupation permissions to the buildings is then granted in due course.	Upon completion of the last buildings in the layout, the underlying land is transferred on lease to the society of slum dwellers.
T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
5.0 on 5.0

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