1) I Bought a Flat in 2020 from a builder 2) I Paid 95 percent(70 percent through loan) of the property. 3) I Requested the builder to transfer the property to a different name(Got a seller who is ready to purchase my unregistered flat). 4) Builder insists that i need to pay GST back to them along with 100 per sqft charges(which are specified in the sale agreement). Please let us know how to proceed to transfer the unregistered property to another name. The below is in the sale agreement ASSIGNMENT: The Purchaser/s shall not assign/transfer his/her/their interest under this Agreement without the prior written consent of the Vendor/ Promoter /Developer herein. It is explicitly made clear that the Vendor/Promoter/Developer herein is not obligated to give its consent for any assignment/transfer by the Purchaser/s as this contract is exclusive in nature. The Vendor/ Promoter/ Developer herein is not obligated to give its consent for any assignment/transfer till their primary sale of all Apartments is fully completed. 38. It is also agreed that, in the event the Vendor/Promoter/Developer herein gives its consent for assignment/transfer of Purchaser's/s' interest in this Agreement, the Assignee/s shall comply with all the terms and conditions which the Purchaser/s is/are required to comply and pay the total sale consideration under this agreement and further the Vendor/Promoter/Developer herein shall be entitled to charge Rs.100/- (Rupees Hundred Only) per Sq. Feet of the Schedule `A' Apartment as their administrative charges and transfer fee for giving such consent. 39. It is also made clear that the Purchaser/s will not be able to assign his/her/their rights in parts/portions i.e., the Purchaser/s will have to either assign all his/her/their rights under this Agreement or otherwise shall not be entitled to assign his/her/their rights at all. In the event of the Vendor/Promoter/Developer herein granting such permission, the Allottee/Purchaser and his assignee/nominee ensure to execute the required documentation at their cost as advised by the Vendor/Promoter/Developer herein and pay the necessary taxes, duties that are associated with such transfer.
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You need the builder consent to sell the flat to third party
2) builder will not transfer flat unless you pay the charges
3) best option is to ask builder to execute registered sale deed in your favour
4) wait for society to be formed then sell the flat
5) you save on transfer charges levied by builder as society cannot charge more than 25k as transfer charges
1. You and the Purchaser have to enter into Assignment Agreement.
2. Before that you have to obtain the developer's consent for the same in writing by paying Rs. 100/- per sq.ft. charges.
Since you have agreed to the conditions and entered into a registered sale agreement with the builder, you are bound by the conditions stipulated therein.
The cost of transfer would be heavy when you work it out @100/-sq ft.
This is a kind of exploitation if you would opt for sale without having a registered title on your name and since this is a vital condition you are helpless to the situation.
No doubt this appears to be one sided condition but what can you do about it at this stage.
You can fight against it through consumer commission but it's a time consuming process besides there's no guarantee for a favorable decision.
Alternately, you can wait for the registration of sale deed in your favour and then you can get the transfer by sale by getting NOC from society which will save you a big amount.
- As per law, without Registration a buyer has no legal right over the property even he has cleared all the dues with the builder, and further cannot sell it to anyone under the Transfer of Property Rights Act.
- Since, you want to sell the said property without having a title document in your favor ,then you should approach the builder and request him to make changes in the Builder-Buyer Agreement and transfer the ownership rights in name of the purchaser.
- As per rule the builder after collecting processing charges, can register the property in the name of purchaser, and this processing fee is charged to change the Builder-Buyer Agreement.
- However, as you have accepted the terms and conditions of the agreement, then you are bound to comply the same , otherwise the builder may try to take advantage
- Since, the said agreement is one sided , then you can approach the Consumer forum against him .
Hi team, Thanks for your answers. There are three options overall 1) Consumer court( which I couldn't proceed due to time consuming) 2) Pay the processing fees levied by the builder(GST and 100 per square feet) 3) Register the flat on my name and sell post society approval Please let us know if I am missing any option.
The third option is best
2) cases before consumer forum would take long time for disposal
3) builder charges are very high
the clauses as reproduced in your query are like blanket consents, one sided, lop sided and totally onerous and ought not to bind the purchaser
there is no need to pay the GST all over again for amounts which have already been paid by you
the builder can at the highest charge Rs. 100/sq.ft for giving consent for the transfer
the balance payment under the agreement as per the payment slabs would be paid by the transferee to the builder and at that time he has to pay GST on those installments
Option of RERA is also there but if you don’t want to get into any litigation then you can proceed with payment as per buildrr
You have understood the issue properly.
Now you can decide based on your urgency or situation.
The third option is better for you
Thanks, team, Will go with paying the processing fee for a name change. 1)Name change (It cost around 1604 sqft *100+ 4.5l=6.1Lakh) 2)Registration on my name(6.3lakh) and selling to another person (will take time due to NOC getting from society which is not formed yet)
Since costs are more or less the same you can pay the processing fees to builder and sell the flat
You were advised to take a wise decision based on your situation.
If the pros and cons analysis say that this would be a better solution especially considering the time and cost for the same solution at a later stage, you may proceed as decided.
But never take a decision in haste
Dear client,
It seems you have already decided to go with the option of paying the processing fees for the name change on the property. This choice involves paying Rs. 100 per square foot along with GST and registration costs. Additionally, you mentioned the possibility of registering the flat in your name and then selling it to another person, but this may require time due to the need for a NOC from a society that has not yet been formed.
If you have made a decision and have further questions or need guidance on how to proceed with this option, feel free to ask, and I'll do my best to assist you.
- Once , the possession will be given to the purchasers, the builder will handover the premises to the Society, hence if you want to sell urgently ,then better settle the matter with the builder.
Best of luck