• Flat buying rate is less than govt rate

Dear Sir

i have buy flat at pune before 2-3 Year .at 2450/Sq feet (Not Ready) & Now Government Value is 3100/Sq Feet .Now Construction going on flat and possession is on march 2018. Now we going to do agreement with Builder .But builder is Demanding 30% Of Differences between sell Value & Government define value.Can i pay differences or Not  Please Help Me .

Amol
Asked 11 months ago in Property Law from Pune, Maharashtra
Religion: Hindu
1) you had bought flat 3 years before at 2450 per square feet 

2) you dont have to pay builder 30 per cent of difference between sale value and ready reckoner value . 


Ajay Sethi
Advocate, Mumbai
23386 Answers
1229 Consultations
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Hi, if you are not entered any agreement with builder in two years back then  you have no option, you have to enter into an agreement as per his demand only otherwise he will not execute any agreement.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Hello,
1) To advise you accurately one needs to peruse the MOU or the Agreement to Sell that you have entered into with the builder.If he has included any clause that gives him the right to alter the conditions he may succeed with the demand for additional 30% of difference of sale value and the Govt. value and that sounds reasonable.

2) However thee fact is that the builder should honour the contract that he had enteed into with you 2-3 years back and should have anticipated escalation in value and possible greater profit.

3) Your legal options are either to cancel the contract and ask for a compensation as your money was blocked for 3 years and he is now making additional demands that you don't want to agree to. Alternately if you choose to pay the 30% difference, pay only after you get a written undertaking and the payment should pace out until possession in March 2018.
S J Mathew
Advocate, Mumbai
1954 Answers
66 Consultations
5.0 on 5.0
1. The query is not clear. How are you saying that you bought the flat @ Rs.2450/Sq.Ft  2-3 years ago? Have you registered the sale deed at that time?

2. If the above presumption is right, why do you need to have an agreement with him now?

3. Or is it that your booking and paying for the flat was on verbal assurance for which you now want to make the agreement for sale?

4. If yes, then pay off the additional 30% and get the agreement for sale and also the sale deed registered at the earliest.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
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You must see the terms and conditions mentioned in the sale agreement and if the sale agreement is a registered document, if there is no such mention about the difference amount to be aid due to this change in the government guidance value, you need not pay the difference amount as demanded by the builder. 
You ask him to give it in writing and once he has demanded the same in writing, you may refuse to comply with his demand citing the terms and conditions of sale agreement.
If the builder is trying to avenge on this through some other topic, you may drag him to court for his revenge taking attitude. 
T Kalaiselvan
Advocate, Vellore
14166 Answers
128 Consultations
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It is settled law that stamp duty is payable on the basis of circle rate prescribed by the government for a particular area or value of the property in the deed. The value of the property for the purposes of registration is either the rate as fixed by the Government or the Market value whichever is higher.  Ordinarily, the Registrar will follow the guideline value only. If you insist he will have no other option but to register it for the sum stated by you to avoid any loss of revenue to the Government. So you can pay the differential value.
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
5.0 on 5.0

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