Sulabh Jain (Lead) 19 March 2014

Transfer of property by builder

Hi,

I brought one flat in Indirapuram which is having possession next week. As per agreement done by Seller(third party) he has to transfer the flat into my name and then i will go for registry.

Now when the seller go to builder asking for the transfer to my name, builder is saying that he can transfer the property only with the current circle rate. say if Seller buy the property from the Builder @ 3000/sq ft and current rate is 4300 then builder is asking to cancel the booking from the seller name and add fresh booking from my name but with current circle name. This led to the

1. Extra service tax to Builder.

2. TDS deduction on the difference of the amount i.e 1300/sq ft.

All the builder except mine is doing transfer in a way that they replace the name in the agreement and take the transfer charges like 200/sq ft.

Can you suggest some legal opinion here on how to come out with this mess.

Regards

Sulabh

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3 Replies

Gaurav Garg (Legal consultant) 19 March 2014

Dear Mr. Sulabh

Every Developer has his own policies governing the transfer procedure of the properties. Until, the date of registration the buyer is the deemed owner as he is holding only Unit Buyer' s Agreement by which the buyer becomes the owner of that unit.

The procedure adopted by the Developer in your case is very true as the legal rights of the previous buyer will become null & void as soon as the Developer cancels the allotment of the first buyer.

By giving a fresh allotment in your name, you are relieved with all previous liabilities of the first buyer.

Thanks

Gaurav Garg

9971080500

Sulabh Jain (Lead) 19 March 2014

Hi Mr. Gaurav, Thanks for your prompt reply. Here I want to ask that all builders adopted the pattern to change the name of the owner in agreement while doing transfer and take transfer charges therefore there will not be the process of cancelling the booking and then make the fresh booking. But my builder is going another way of transfer. Is there any clause in law which stops my builder in transferring the flat just by simply making allotment in my name rather doing cancellation and then rebook it in my name. Can I give you the ring on your number. Sulabh