Registration of construction agreement in tamilnadu for flats
C.J.Sriram
(Querist) 28 April 2017
This query is : Resolved
1. In a Joint Development Agreement, the Land Owner(A) is paid money for registering the UDS and do not have any rights to any of the flats constructed by Builder(B).
2. The Builder is spending the construction amount and has FULL rights to himself for all the flats therein as per the terms of the JDA.
3. The Project is in state of TamilNadu where, registration of the construction agreement is compulsory with Sub registrar.
4. The Sale Deed with UDS is registered by "A" the land owner for all flats except 4 flats.
5. The construction agreement is registered by "B" as the Builder favouring all the Purchasers, except for 4 flats remaining unsold.
6.In the end, 4 flats remain unsold in the above manner and the BUILDER-(B) receives construction cost from Land owner (A) and hands over possession of the 4 flats to A. BUT the construction agreement is not Registered with SUb registrar, which is mandatory in TN.
7. Query:
(i) Does (A) the land owner gets legal title for the 4 flats,when the Construction agreement is not Registered?
(ii) when the JDA specifically mention that ALL THE FLATS BELONG TO THE BUILDER, can he pass the legal title without registration by mere handing over of the possession.
(iii) CAN the Landowner get full legal title to the FLAT, without having a valid registered Construction agreement in his favour.
(iv) MOST IMPORTANT. THE LAND OWNER IS A REGISTERED COMPANY-(A) AND THE BUILDER IS ALSO A REGISTERED COMPANY (B) having separate legal entity and identity. But They have common Managing Director. So, is passing the unsold flats to company A correct in Law?
Dr J C Vashista
(Expert) 30 April 2017
Show the agreement to a local lawyer for proper appreciation of facts and form an opinion based on the laws (local) applicable on the subject.
Rajendra K Goyal
(Expert) 30 April 2017
Without knowing full case details / material facts/ related documents any, nothing can be advised. Discuss with local lawyer.
