Hello guys,

WE have a society formation scheduled in next week. In the letter from builder for inviting us to forma society and elect members, it has also been stated that we all have to pay 'x' amount for obtaining sale deed.

Is this a trend in pune? has anyone faced this??
Please share your thoughts on this.

Thanks in advance.
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  • society formation

    Originally Posted by DCisconfused
    Hello guys,

    WE have a society formation scheduled in next week. In the letter from builder for inviting us to forma society and elect members, it has also been stated that we all have to pay 'x' amount for obtaining sale deed.

    Is this a trend in pune? has anyone faced this??
    Please share your thoughts on this.

    Thanks in advance.

    Your question is not clear.
    Normally builders charge a lumpsum in the initial stage while booking and entering into sale agreement for society formation say Rs15000 or some such fancy fiigure.Society formation expenses of a build is not all that high to charge Rs15000 per flat as in big societies the total amount will work out to 15000*200= 30 lakhs which is free funds for builder.
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  • Originally Posted by vaibav123
    Your question is not clear.
    Normally builders charge a lumpsum in the initial stage while booking and entering into sale agreement for society formation say Rs15000 or some such fancy fiigure.Society formation expenses of a build is not all that high to charge Rs15000 per flat as in big societies the total amount will work out to 15000*200= 30 lakhs which is free funds for builder.

    Hi Vaibhav,

    Thanks for your reply.
    I understand that builders do charge you some amount at initial stages for agreement and all. That was charged to me as well.But we did not execute sale deed. That was only agreement between you and the builder. Now 5 months after possession he is insisting on society formation which by law is correct.
    He is doing sale deed now which means you have the whole authority of your flat and builder has no obligation henceforth whatever you do to your flat. He is charging separately for this sale deed. Is this legal??

    Hope this clarifies.
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  • Who's the builder? Why not take a lawyer on-board by committee and get this done? send him sec5 notice and he will do it for free
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  • Originally Posted by "DCisconfused

    Hi Vaibhav,

    Thanks for your reply.
    I understand that builders do charge you some amount at initial stages for agreement and all. That was charged to me as well.But we did not execute sale deed. That was only agreement between you and the builder. Now 5 months after possession he is insisting on society formation which by law is correct.
    He is doing sale deed now which means you have the whole authority of your flat and builder has no obligation henceforth whatever you do to your flat. He is charging separately for this sale deed. Is this legal??

    Hope this clarifies.

    Dear DCisconfused,
    As per my knowledge, the society is supposed to pay towards Stamp Duty required for Sale deed/ Conveyance. This Stamp duty has to be distributed within the members.
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  • Originally Posted by Jitu_Sir
    Dear DCisconfused,
    As per my knowledge, the society is supposed to pay towards Stamp Duty required for Sale deed/ Conveyance. This Stamp duty has to be distributed within the members.


    Jitu Sir,

    Every flat buyer is paying the stamp duty during the process of registration of his / her flat. That means every prospective society member has already paid his/her portion of stamp duty.

    Since there is no monetory transaction involved during the process of coveyance from developer to society,So where does the question of paying stamp duty arise? If at all there is some stamp duty still to be paid it may be bear minimum for doing the stamp paper.
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  • Maharashtra MCS Acts and flat ownership Act clearly indicates that Society formation and conveyance thereof is builder's responsibility. However its very common in Pune that Society pays lum-sum amount to builder.
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  • Originally Posted by "vjosh2


    Jitu Sir,

    Every flat buyer is paying the stamp duty during the process of registration of his / her flat. That means every prospective society member has already paid his/her portion of stamp duty.

    Since there is no monetory transaction involved during the process of coveyance from developer to society,So where does the question of paying stamp duty arise? If at all there is some stamp duty still to be paid it may be bear minimum for doing the stamp paper.

    Dear vjosh,
    Sale deed registration requires a bare minimum stamp duty which is to be borne by the members of the society.
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  • Conveyance deed

    Originally Posted by Jitu_Sir
    Dear vjosh,
    Sale deed registration requires a bare minimum stamp duty which is to be borne by the members of the society.

    Conveyance deed is the transfer of the legal rights of builder on the land on which project is situated to the housing society duly formed and registered with Registrar. The stamp duty involved in the transaction is borne by the housing society or in the absence of funds by owners in proportionate manner/equally.
    I dont know whether conveyance deed can be termed as sale deed a no financial transaction takes place.It is merely registration of a deed and chairman of society sings the papers as one party and the builder as the first party.
    Maharashtra MCS Acts and flat ownership Act clearly indicates that Society formation and conveyance thereof is builder's responsibility. However its very common in Pune that Society pays lum-sum
    Many things are written in the act but do not get followed in practise. If you wait for the builder to pay the stamp duty of conveyance of title you will have a long wait. As such in Pune,most socities have not successfully got conveyance deed registered,not withstanding legal proviso of deemed conveyance.
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