Fail to pay builder amount after registration of flat
Sheikh Mohammed Shoaib Latif
(Querist) 02 May 2017
This query is : Resolved
Sir,
A salaried income Flat buyer paid initial amount expression of interest (EOI) and 10% of value of flat purchase paid to builder from his pocket. After that the buyer approached to the nationalized banks for home laon for Rs 6,00,000/- as the falt cost was 1.4 cr. The banks refused to give loan to buyer as he crossed 45 yrs. Age limit for the amount.
The flat buyer innocently registered the flat paying MVT and other taxes for total cost of Rs 900000/- as per the verbal assurance of support by sales team. The buyer estimated by planning to sell his native place asset and pay the balance and take minimum loan from bank which he is eligible for. Unfortunately the demonetization has blocked all transaction and no party at native place had come ahead to buy his assets. without reading the clause of flat cannot be sold for 2 years after registration agreement done. The builder send 2 notice for delayed payment and final reminder for cancellation letter.
The query can a builder register sales agreement with buyer without any pre approval sanction by banks for housing loan. Kindly suggest expert advice.
Regards
Guest
(Expert) 02 May 2017
Booking flat without reading terms of agreement can't be said that the "buyer innocently registered the flat."
Your question, "can a builder register sales agreement with buyer without any pre approval sanction by banks for housing loan," has no relevance, as bank does not come in to picture in the settlement of mutual deal between the buyer and the seller/ builder until home loan is applied to some bank.
Sudhir Kumar, Advocate
(Expert) 03 May 2017
Agreeing with Mr Dhingra I would request you to kindly elaborate that in the entire episode what was the fault of the builder.
Guest
(Expert) 03 May 2017
Dear Sudhir Kumar,
Thank you for agreeing with me.
Sheikh Mohammed Shoaib Latif
(Querist) 03 May 2017
Sir,
Thank you for your expert reply. The clause put by the builders is during the construction the buyer cannot sale the property for minimum two years period and also if the buyer fails to pay the 80% value of asset he will loose all the initial amount invested till date.
Is their any Real Estate Regulation Act (RERA)where the buyer will be refunded his amount by just deducting 2% minimum as interest against the sum deposited?
can this be amicably resolved through RERA??
Guest
(Expert) 03 May 2017
Better stick to your real problem. Your initial query was, "can a builder register sales agreement with buyer without any pre approval sanction by banks for housing loan."
Now you have shifted your stance by asking some other nature of query, "Is their any Real Estate Regulation Act (RERA)where the buyer will be refunded his amount by just deducting 2% minimum as interest against the sum deposited?"
Contrarily, as you pointed out, your problem seems to be with respect to the new conditions imposed by the builder after agreement.
You may better get your case related papers examined in detail from some expert in property matters and tell, what exactly you want, whether to know about your previous agreement, or concern about new conditions of the builder or want refund of your payment.
Rajendra K Goyal
(Expert) 03 May 2017
RERA has not been notified rules and authority in most of the states till this date.
Full agreement need to be referred.
Discuss with local lawyer.
Guest
(Expert) 03 May 2017
Discuss with local lawyer.
Sheikh Mohammed Shoaib Latif
(Querist) 03 May 2017
(Mumbai Property)
Dear Sir,
The problem is at the time of booking we were not aware that after the age of 46 yrs. banks will not sanction loan for Rs 60,00,000 for 20 yrs. to salaried employees as the retirement age is 60 yrs. and employed in private firms have no pension schemes. Hence to pay the balance amount we need to sale the ancestral homes at Madhya Pradesh which are locked for long and needs correct documentation before sale. Unfortunately the demonetization had very bad impact as nobody was keen in buying the property at native place. Most of the property buyers and developers were keenly waiting for RERA.
AS we are not in position to sell our assets so fast need time limit to sale the property and pay the balance amount. in spite of writing mails and had meeting with the promoters executives they refuse to wait for the payments. They themselves are finding difficult in selling their flats in market and are already with new schemes of paying after 3 yrs. period which we requested for but have not replied so far.
Now they are asking for cancellation.
Guest
(Expert) 03 May 2017
Discuss with Local good senior Advocates for Precautions to not to loose the advance amount paid. ( it can not be discussed in detail here ).
Guest
(Expert) 03 May 2017
Now your description gives inkling of some real problem. Since your problem is not of such a nature that can be solved through casual queries at this site, you have already been advised to get your documents examined in detail by some property laws expert.
However, so far as the conditions imposed by the builder after the original agreement, that are not valid in law. That can well be challenged in the court of law. Only original conditions can prevail, not the altered conditions.
You can get the deal cancelled to get refund, if effectively represented in the court of law by your lawyer. But, before that, you will have to create some solid evidence about the builder's irregularities or negative response.
Sudhir Kumar, Advocate
(Expert) 03 May 2017
"The clause put by the builders is during the construction the buyer cannot sale the property for minimum two years period and also if the buyer fails to pay the 80% value of asset he will loose all the initial amount invested till date."
Does this matter the buyer will not be excluded from the list buyers even if he doe snot pay.
Sudhir Kumar, Advocate
(Expert) 03 May 2017
"he problem is at the time of booking we were not aware that after the age of 46 yrs. banks will not sanction loan for Rs 60,00,000 for 20 yrs."
If you did not know that 2+2=4 the how builder was wrong. He has opened a building firm. He has not opened a commonsense school.
Sudhir Kumar, Advocate
(Expert) 03 May 2017
" in private firms have no pension schemes."
first of all there is pension scheme for EPF covered companies.
Secondly even if there is pension still no loan is sanctioned on surety of pension.
Sudhir Kumar, Advocate
(Expert) 03 May 2017
"Hence to pay the balance amount we need to sale the ancestral homes at Madhya Pradesh which are locked for long and needs correct documentation before sale. Unfortunately the demonetization had very bad impact as nobody was keen in buying the property at native place. "
How builder is at fault in all this?
Sudhir Kumar, Advocate
(Expert) 03 May 2017
"AS we are not in position to sell our assets so fast need time limit to sale the property and pay the balance amount. in spite of writing mails and had meeting with the promoters executives they refuse to wait for the payments. "
How builder/promoter are wrong.
Sheikh Mohammed Shoaib Latif
(Querist) 03 May 2017
Dear Sir,
Thank you for your expert advice
We are not blaming the builder nor we are in favor of lodging any complaints against the builder. The builder is not at all at fault. We already quoted to resolve amicably the issue with the builder. Is it possible . Hence not to repeat any mistakes further we ask query to many experts to go ahead. its difficult for a common man to understand property laws like RERA act.
Kind Regards,
