• Sale of right in under-construction property

Hi,
I have invested in an under Construction project in Feb 2014. Possession is expected at end of 2016. Can I sell my property before taking possession. Will the builder allow me to sell the flat allotted to me? If I have to sell it back to builder then what should me the ideal rate? What will happen to my Stamp duty and registration charges and service Tax and M Vat which I have already paid in case I have to surrender the rights to builder. Will he deduct some amount from what i have paid him.
I have taken a loan from Bank as well.
Asked 11 months ago in Property Law from Greater Mumbai, Maharashtra
Religion: Hindu
1) you must have entered into agreement with builder for purchase of flat 

2) there must be clause relating to sale of flat before delivery of possession 

3) builder will charge you transfer charges for sale of flat to third party 

4) buikder may not buy back flat from you as most builders are facing financial problems and don't have any liquidity 

5) you would need bank consent to sell the flat 
Ajay Sethi
Advocate, Mumbai
23365 Answers
1223 Consultations
5.0 on 5.0
There is a clause in the sale agreement that the purchaser can transfer his rights in favour of his nominee or agent and the builder is bound to execute the sale deed in his favour as well, this is called "Assignment". If this is provided for in your sale agreement as well then you can, you will need an NOC from your bank as you have raised a loan over the property and CHARGE has been created over this property.
Generally builders charge extra for cases of transfer which would be nominal. You can sell the property at the current market price.
The final price quoted by you will be inclusive of all charges paid by you to the builder till the date of sale.
Kiran N. Murthy
Advocate, Bangalore
766 Answers
51 Consultations
5.0 on 5.0
Hi, You can sell the property but before selling the property you have to go through the clause in the Agreement if it is provided then you can sell to anybody.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. You can sell your right of the flat to any other person subject to the consent of the builder at this stage if the said flat has not yet been registered in your name,

2. In that case you can execute a sale deed between the third party and the builder wherein you will be a consenting party. In the said sale deed, the entire matter of your booking the flat and then releasing its right in favour of the third party should be mentioned,

3. You should get back the stamp duty and all other registration expenses paid to the builder from the builder or from the third party since the builder will bear the expenses having collected the amount from you. 
Krishna Kishore Ganguly
Advocate, Kolkata
12137 Answers
233 Consultations
5.0 on 5.0
Once the sale deed is registered in your favour the title passes to you, thereafter you are at liberty to sell the property even if possession has not been delivered to you. Unless there is anything contrary in the sale deed the builder cannot stop you from selling the property. It is for you to decide at what rate you should sell it. The builder is not liable to refund the stamp duty and registration charges paid at the time of registration. Note that sale of property is not a surrender of rights to the builder. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
Though you have availed bank loan and invested in the property which i yet to be handed over to you after completion of construction, you should understand one thing that the property's sale deed has not been executed and registered on your name.   Therefore mere registered sale agreement will not make you owner or will entitle you to have a marketable title to the property. 
Under the given situation, if you find a prospective buyer, you can get into a tripartite agreement with the buyer and the builder and execute the sale  through builder to the buyer who will pay you the entire amount as well as the increase in the value as per the agreement..The sale deed shall be executed in his favor by the builder on the basis of the tripartite agreement and the loan also can be repaid or transferred as per the provisions prevailing on the issue. 
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
1) yiur mother can execute gift deed in your favour in respect of 50 per cent share in property 

2) it would attract nominal stamp duty of Rs 200 

3) you will have to pay registration charges 
Ajay Sethi
Advocate, Mumbai
23365 Answers
1223 Consultations
5.0 on 5.0
 Can my name be added without paying stamp duty?
As per the new provisions of Law by Maharashtra government "GOVT. WAIVES STAMP DUTY ON TRANSFER OF LAND / FLAT TO KIN or FAMILY MEMBERS". I don't want my mothers name to be removed. Is it possible to add my name as co owner.
You cannot add your name in the property document without transfer.  
You cannot become a joint owner without any legal transaction involving the property.
The property was originally registered on your mother name as a buyer.  There cannot be a new buyer now.
You can ask your mother to gift an undivided half share by executing a registered gift deed after which you can be a joint owner.
There is no stamp duty payable  for transfer of immovable property within the blood relations in Maharashtra State.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Your name can be added only if your mother i,e current owner gifts a part of the property to you through execution of a gift deed, in which event it will be exempt from the payment of stamp duty being a transfer between blood relatives,
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
In the instant case your mother shall have to convey 50% undivided share of the property in your name to make you the joint owner of her property.
Krishna Kishore Ganguly
Advocate, Kolkata
12137 Answers
233 Consultations
5.0 on 5.0

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