• Transfer of flat - builder not allowing and asking 10% transfer charges

I have a flat in Sector 143 Noida. Possession taken 2 years back and " Agreemnet to sub-lease" done between builder and me and stamp duty paid in registrar office. Noida authority has not yet opened registry of this project as full project not completed.

I want to sell the apartment but builder says they have halted the transfers and will not transfer . Before they were saying they will charge 10% of sale price as transfer charges.

Question 1: Can builder deny my right to sell the flat as I have already paid all charges and have agreement to sub-lease.

Question 2: Can builder ask for transfer charges. I checked BBA andnothing is given.

Question 3: As builder is not very flexible, what to do in this case.

Thank you.
Asked 2 years ago in Property Law
Religion: Hindu

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8 Answers

1) you dont need builder consent to sell your flat

 

2) builder cannot charge you transfer charges 

 

3) however it is better you have registered agreement in your name to confer clear and marketable title to flat 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

get registered agreement signed when registry opens 

 

then sell your flat as you would get better market price 

 

3) there is no provision in law wherein builder can demand 10 per cent as transfer charges

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You can file a consumer complaint and seek interim relief if builder is not cooperating

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

- 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.

1. Being the registered owner in possession of the property by way of agreement to sub-lease ,  you have full right deal with the said flat, and the builder has no right to refuse transfer, and even to ask transfer charges.  

2. The nefarious demand by the builder is against the Indian Contract Act, because this demand by the builder is an extra contractual demand on the buyer, which infringes the buyer’s ownership rights.

3. This demand of transfer fee is also prohibited under section 4 of the Competition Act as well. 

You can issue a legal notice to the builder , and on refusal, you can lodge your complaint against him before RERA or consumer court .

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

The agreement to sub lease is not a title document hence you cannot claim title to the property unless you have a registered sale deed on your name .

2. The builder cannot demand transfer charges from you if the property has been purchased by you by a registered sale deed and you are the absolute owner of the property, especially in the absence of a RWA.

3. If the builder is not cooperating then you can take legal action by first sending him a legal notice demanding the relief you require and then escalate the matter legally.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Registered sub lease agreement is not a title document, you cannot claim ownership of the property by that sub lease deed.

You get the property registered on your name by a registered sale deed after which you can claim rights over the property.

You wait for the registration to be opened in order to get the execution of the transaction registered on your name

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

there seems to be a lot of confusion in your query

i would like to know whether the possession was given to you pursuant to a duly registered agreement for sale executed by the builder in your favour?

if that is the case and possession is with you then obviously the allotment of the flat is done to the purchaser on 'ownership basis'

so i am not able to understand for what the sub-lease agreement was made

the flat purchaser on being put in possession of the flat [for which i assume he has a registered agreement for sale in his favour] then there is no question at all for seeking noc of the builder to sell the flat or to pay him any transfer charges 

the flat purchaser can directly sell the flat to the purchaser of his choice

the builder cannot act like some landlord and collect transfer fee

also since the possession is given i assume the OC must be received

so once the OC is received and possession is given to majority flat purchasers who can form a society or association then the builder cannot hold up on the property till eternity...there are umpteen number of judgments of various high courts to that effect

if the builder has not formed a society or an association of flat purchasers despite the minimum number of flat buyers required to form a society having taken their flats and has also not conveyed the property to such society, then the flat buyers can themselves form a society and apply to the competent authority for conveying the property to such society

so if the builder's time to exit the project has come but he has still held up onto it to collect transfer fee on transfer of flats, then despite there being any stipulation to that effect in the agreement with the flat buyer, such stipulation will be of no effect and will be merely a blanket consent

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Dear Client, 

The builder cannot refuse transfer or even request transfer fees; as the registered owner in possession of the property through a sublease agreement, you have all rights regarding the aforementioned unit. Builders are not allowed to refuse to sell real estate to particular communities. Every Indian citizen is entitled to equality and nondiscrimination, under the country's constitution. You can complain to the Consumer Court or the Real Estate Regulatory Authority (RERA) if you are the victim of such discrimination.

Hope this answer proves beneficial to you.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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