builder

BUYING AND SELLING OF PROPERTY BUYING AND SELLING OF PROPERTY

APURVA AGRAWALAPURVA AGRAWAL

ROTARY CLUB OF BOMBAY WORLIROTARY CLUB OF BOMBAY WORLI

MAY 19, 2007MAY 19, 2007

WHAT IS A CHEQUE?

The title of the property should be clear,

marketable and free from encumbrances

All dues on the property should have

been paid

Always use the services of a competent

Advocate for verifying the title of

Property

TITLE

INSPECTION OF DOCUMENTS

Builders liability produce the following documents which shall be part of the Agreement of Sale

(a) Approved plans/specification(b) Commencement certificate(c) I.O.D.(d) Occupation Certificate(e) Building Completion Certificate(f) Title Certificate

Book or Buy your flats only when Builder

has obtained BMC permission’s like I.O.D. ,

sanction of plans and commencement

certificate from the Concerned Authorities

BOOKING / BUYING OF FLAT

CONSTRUCTION OF BUILDING

Flat purchaser should check that the

construction is according to the sanctioned

plans and specification granted by

Concerned Authorities.

The Builder must ensure good quality

materials and proper workmanship

AGREEMENT FOR SALE

Upon receipt of the any payment exceeding 20% of the sale price of the flat, the Builder has to execute the Agreement for Sale

Carpet area of the flats should be clearly and unambiguously defined in the agreement of sale

The nature, extent and description of all AMENITIES and common facilities to be clearly mentioned in the Agreement

PAYMENT SCHEDULE

PAYMENT SCHEDULE should be according

to the progress of the work, under the

provisions of the MOFA, 1963 / MAOA ,1970

The Builder should not enhance (Escalation)

the price of flats on any account whatsoever

once the agreement for sale is executed

except for additional government

levies/taxes/court orders

DETAILS OF FLAT PURCHASERS

The Developer must prepare and maintain

details of other flats purchaser like their

names, flat numbers, addresses, price

charged etc.

STAMP DUTY

Stamp Duty is payable on the higher of the market value of the property or on consideration paid under the agreement

Document has to be adjudicated before stamping

The rate of stamp duty payable is 5%

The stamp duty has to be paid before signing or executing the document i.e. Agreement for Sale

Agreement for Sale has to be registered with the Sub-registrar of Assurances on whose jurisdiction the property is located Registration should be completed within four months from the date of execution of the Agreement for Sale

The present registration fee is 1% of the market value of the property or the consideration whichever is higher subject to a maximum limit of Rs. 30,000/-

REGISTRATION

CHANGE IN PLAN / SPECIFICATION

All conditions with regard to infrastructures should be approved by Municipal authority / Planning authority and fully complied with the same

No alteration, additions or deviations in the plan and specifications of the buildings without the consent of the Flat Purchaser once the same is furnished and disclosed to the Flat Purchaser

DELAYED COMPLETION OF BUILDING

In case of delayed completion beyond the period stipulated under the 'Agreement for Sale’

(a) Demand for refunding the amount received by the Builder / Developer with interest @ 9 % p.a. or as specified in the agreement

OR

(b) Wait for completion and get the possession

of the flat

The Builder should specify in writing the date

on which the possession of flat is to be handed over to the Flat Purchaser and ensure timely possession

The Builder should obtain completion and occupation certificate prior to giving possession of the flat to the Flat Purchaser

POSSESSION

DEFECTIVE CONSTRUCTION

The Builder should attend to all bonafide complaints of defects expeditiously

The defect liability period of the Builder is three years from date of completion of the building

If the Builder fails to rectify the defect in the building, the Flat Purchaser has a right to receive reasonable compensation

ACCOUNT OF PAYMENTS

The Builder should maintain

(a) separate account in respect of sums

received for purposes such as the

capital

for promotion of the society, towards the

maintenance till the society is formed, etc

(b) the same should be utilize only for those

purposes for which it was collected

SOCIETY FORMATION

The Builder has to form the society

Builder should submit an application to the

Registrar within four months after atleast ten

persons or 60% of total flat is sold or have

taken possession of the flats

It is the duty of the Builder to cause the

conveyance of the title and interest in the land

and the building to the society.

REMEDIES

The remedies available to the Flat Purchaser against Builder are the following:

(a) A complaint in Consumer Forum as deficiency of services under Consumer Protection Act 1986

(b) Suit for specific performance under Specific Relief Act, 1963 and Indian Contract Act,1872

(c) Criminal complaint under the Maharashtra

Ownership of Flats Act , 1963

PENALTIES

The penalties that maybe imposed on the Builder are as under:

CONSUMER PROTECTION ACT:

(a) remove the defects complained of ; OR

(b) return the price to Flat purchaser ; OR

(c) pay compensation if any injury is suffered

by the Flat Purchaser ; OR

(d) provide for adequate costs

PENALTIES …Contd

SPECIFIC RELIEF ACT AND INDIAN CONTRACT ACT

(a) The Flat Purchaser can get the specific performance of the breach under

the Agreement for Sale

OR

(b) Adequate Compensation

PENALTIES …Contd

MAHARASHTRA OWNERSHIP OF FLATS ACT , 1963

(a) Contravention of Sec. 3,4,5,10 or 11, leads to punishment for maximum imprisonment of 3 years or with fine or with both

(b) Contravention of Sec 5, leads to imprisonment for a term which may extend to

5 years or with fine or with both

(c) Contravention of any other provisions, on conviction, may be imprisoned for a term

which may extend to 1 year or with fine or with both

THANK YOU

CONTACT US

• UNIVERSAL LEGAL 5th Floor, Kimatrai Building 77/79 Maharshi Karve Road Mumbai – 400 002

• Phone: 2203 4293 - 95 • Fax: 2203 9845• E-mail: contactus@universallegal.firm.in