Upgrad LLM

builder's draft of sale deed and unreasonable conditions


I have entered into an oral agreement to purchase a flat at KALPTARU, Ghatkoper, Mumbai. The price is fixed and it is agreed that I will pay 5% upfront and balance within 45 days. I have more than 5%. Builder sent me draft allotment letter which includes unilateral rights to developer to cancel the booking for any breach of terms and conditions, and averments that buyer has inspected all the plans, documents and permissions. Buyer has not inspected any such thing and buyer does not want to give any unilateral right to builder to cancel the booking. Besides, there is no booking. There is straight forward purchase and sale of a ready property.

Through broker, developer agreed to go ahead with sale deed upon 20% payment which we have made. Now after receiving 20% payment, developer says he must have our unconditional acceptance of his allotment letter failing which he will send us a notice of cancellation.

We do not want to cancel the purchase. I believe that we have entered into a valid oral contract to purchase the flat, and have made part payment as well. Now we are insisting for execution of SALE DEED without our accepting their unreasonable condition of granting them unilateral right to cancel the deal.

Pls advise whether our rights of Specific Performance are duly protected in this situation, and whether we can be compelled to accept any unreasonable conditions imposed by developer from time to time.

Thanking you,


Besides, builder (KALPTARU) has given me draft of so called SALE DEED which is more like an agreement to sell, and is not applicable to a ready property but to a property under construction and includes lot of terms and conditions such as escalation clauses, any applicability of VAT.service tax etc from time to time and so on. It also does not talk about transferring possession which will be transferred later. Since I am buying a ready property, I believe my SALE DEED should not include such conditions and should be a straight forward SALE DEED transferring possession as well as TITLE immediately.

I believe the builder should not use the draft agreement for sale to the present case of ready property, and he ought to have two sets of SALE DEEDS, one that applies to future under construction property, and another, for ready property.

Kindly advise.

Thanking you,




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