Clause is not legal .once sale deed is executed you are absolute owner of flat
you are not liable any transfer charges
you can contest the clause in court
Ownership transfer fee demanded by builder for resale
I paid 95% of the flat cost to a builder. We are now going for property registration as my individual apartment structure is complete but the finishings and handover would take another 1 year. Initially, we made a Agreement of Sale 15 years ago (yes, the builder has delayed the project quite a lot). The original copy is missing. In the new Agreement of Sale which we haven’t signed, the builder has put a clause that he will be maintaining the property for 5 years post handover and until that time, if I resell my property I have to pay Rs. 300 per sq ft (total Rs. 6,39,600) as Ownership Transfer Fee to the builder because he is maintaining it. However, this clause was not mentioned in the old Agreement of Sale 15 years ago. (we have a soft copy of old AoS signed by builder but not signed by us) Is this legal? Can I contest in the court of Telangana?
Asked 1 year ago in Property Law
Religion: Hindu
6 Answers
Not legal, neither this clause is valid. You can sell without giving any penny to builder.
This is an unjustified demand and renders it illegal demand.
You can strongly object to it and if necessary you can take it up legally by first issuing a legal notice demanding the builder to scrap the newly introduce clause which is against the interests of the buyers and was not informed earlier in the previous agreement to sale and also can mention that there is no necessity to execute a fresh agreement when the previous one was not cancelled on mutual consent.
There is no new executed agreement as it is not signed by you. It is only a proposal by the builder. Any sale of immovable property is absolute transfer, the seller cannot claim any share in the further sale by transferee. After sale the transferer is out of scene. Such clause is not enforceable by the builder, the same being “unfair contract” under Section 2 (46) of new Consumer Protection Act, 2019. Anyway you have not signed the agreement. You can very much file a consumer complaint in District Consumer Commission and seek direction against the builder. Under new Consumer Protection Act, 2019 proceedings are very fast. You need not appear in District Consumer Commission. You will get a direction to the builder, cost of complaint, compensation for mental harassment and lawyer's fee.
Dear Client,
The original Agreement of Sale, even if not signed by you but signed by the builder, holds some evidentiary value. Any new terms introduced after such a long delay, particularly those that are financially burdensome and were not part of the original agreement, can be contested. Start by formally communicating your disagreement with the new clause to the builder. Send a legal notice to the builder. You can file a complaint in the Consumer Court under the Consumer Protection Act, 2019. The complaint should detail the delay, the original agreement terms, and the new clause's unfair nature. Since this is a real estate matter, you can also file a complaint with the Telangana Real Estate Regulatory Authority (RERA). RERA is specifically designed to handle disputes between builders and buyers. It would be advisable to consult a lawyer who can help you draft the necessary legal notices and guide you through the process of filing complaints with the appropriate authorities. Should you require any further clarification, please do not hesitate to contact us.
- As per RERA, the buyer needs not to pay maintenance charges, till he possesses the apartment,
- Further, the builder is not eligible to claim maintenance charge before the completion of the total facilities, and only after completing everything, the builder can ask for maintenance from the buyer.
- Hence, if your builder has given you the letter of possession, then from that date onward you are bound to pay the maintenance charge.
- Further, when you have taken possession of flat, you become liable to pay the maintenance charge as per rule.
- Since, the earlier agreement was not having any clause for the payment of transfer fees , then the builder cannot enter into a afresh agreement for the same , and hence his demand is not legal
- You can file a complaint against the builder before the consumer forum on the ground of illegal demand of transfer fees and delay in possession
- Further, you can also also claim compensation plus 10% interest for the harassment caused due to delay in possession
