Builder not increasing price
I had booked a flat in October 2014 during the launch phase at a price of Rs.3600/- psf.
The price of the project was increased by Rs.100/- psf in November 2014 and the construction began shortly (around December 2014 or January 2015).
The construction is in full swing and 9th floor of my tower has been constructed (12th floor of other three towers in the project have been constructed) as of today.
I booked the flat as an investor, but unfortunately the builder has not increased the price after the last price increase in November 2014. Now I am unable to off-load my booking and exit. Is there a legal wrong-doing on part of the builder by this practice and can I challenge this in consumer court and get my money back or force the builder to increase the price ?
FYI, the market value is atleast 4200 psf, the builder is artificially keeping the price low to stay competitive and sell his inventory.
Asked in Property Law from Kolkata, West Bengal
1) the builder is not bound to increase sale price of flat to enable you to exit the project
2) there is no such agreement entered into with builder wherein he guaranteed you exit at increased price
3) filing complaint before consumer forum woukd not yield any results
There is no law by which you can force to builder for increase the rate, if you want your money then it will be claim as per the builder buyer agreement if executed between you and builder.
Feel free to call
Advocate, New Delhi
Unless the agreement itself mandates that the builder should increase the price at fixed periodic intervals he is not bound to increase it. When you make a real estate investment you enter it knowing that your investment may result in loss.
1. You had booked the price during October'14 and the price of the said property has been increased from November'2014 by Rs.100/-
2. There is nothing legally wrong on the part of the builder in deciding not to increase the price of the said property any further to remain competitive in the market,
3. You can not claim any increase in the price of the said property for the purpose of your making financial gain by reselling it.
You have booked a flat and entered into a sale agreement with the builder.
If the builder increases the price of the property arbitrarily then it may be termed as violation of the sale agreement conditions and he may be booked for cheating offences under criminal law as well as he can be dragged to consumer court for deficiency in service.
If you want to re-sell your property, you can sell it at the current market price, why do you have to depend on the builder to raise the price.
It will be illegal on the part of the builder to increase the price especially after having entered into a registered sale agreement with the buyer.
Your idea or object behind buying this flat has nothing to do with the builder, he is not bound or obligated to any such fancy ideas of the purchasers.