Thanks to the ever-growing generosity of our members - Legal_Guy; has agreed to answer the legal queries from IREF community. If you have any questions that you want to ask him - please post in the Indian Propety Laws forum OR tag him by adding an ''at the rate of symbol" before his username, and ';' after his username.

Thank you Mr Legal Expert!

Needless to say, no nature of solicitations via PMB will be tolerated.
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  • Originally Posted by ashishl


    My query is related to payment schedule for appartmant I have bought in Gurgaon.
    My flat is at 2nd floor and the tower has progressed till 10th floor and there are around 30 floors. I have made 50% payment as per construction link plan. Few days agoe I got a demand mentioning construction stage as completion of Brick work.
    If i go to the sequence of payment, brick work completion appears at 14th in sequence and I have made payment till 8th in the sequence.
    Is is legal for builder to complete brick work of 2nd floor unit and raise demand for payment. A per my logical thinking, the payment schedule has to be as per tower complation stage and not individual unit stage.
    Seniors kindly suggest and give your opinion.

    The demand can only be made as per Agreement entered between you and Builder and/or you and bank (if there is a home loan) wherein a Bank official verifies completion of previous stage before the payment is released for next stage upon Demand being made. The language of the Agreement shall indicate whether the Demand for construction linked payment (“Demand”) is linked to construction of whole tower/building or is the Demand linked to construction of each Flat.
    Thus the Demand for payment of stage of Brick work can be made if the very previous stage has been completed in your individual flat AND if the Agreement says that the Demand is linked to each individuals Flat and not stage of construction of the whole Tower/Building. If the Demand is linked to stages of construction and completion of whole Tower/Building this premature demand only for your Flat cannot be made.
  • Originally Posted by PRIYANKJAIN
    Dear Sir/Mam,
    I Purchased Shop from Builder in 2011 however Building was formed in 2001 and society formed in 2002. Society Charged me with 20000 Transfer fees but this transfer fee wasn't charged for other shop owners who purchased it after i did. So Should i file a legal case regarding refund for this please tell me.

    It is dependent on the rules of the Society that when and from whom transfer fees shall be chargeable.
    It is also dependent on your initial Agreement / understanding with the Builder whether he had promised you a membership of the future Society without charging any such transfer fees.
    If you do not qualify to be charged any transfer of fees under any of the above two situations you can file a Civil Suit / Consumer Complaint at the Consumer Forum of your jurisdiction for recovery of amount.
  • Originally Posted by Paramveerz
    I recently opted out of a project due to the recent earthquake this year.. I was wondering just in case with all these high rises coming up and trending soo much.. is there any guarantee by the builder or the govt. to ensure we are protected ( financially ).
    Not everyone sends 1.2 crores of hard earned money to see it brought down to dust..

    Does it need to be insured ? Do the builder help out in any manner ? The land however is in their name but since its not a plot but an apartment hence the only ownership we have is of the house and nothing else...

    Kindly enlighten on the concern...

    The only financial protection a Flat owner has for his/her flat if he/she gets it insured against elements of Force Majeure, natural calamities and acts of God. Rightly pointed out since there is no ownership in any part of land of the project, its amenities or any other fixed asset of a project the only recourse is to insure a Flat. The government does not have any protection / reimbursement / guarantee under which a flat owner shall get back the flat or refund of money invested in case of an occurrence of natural calamity or act of God. Builders as well do not provide immunity / guarantee / refunds against acts of God / natural calamities /Force Majeure events.
  • Originally Posted by pune0001
    I booked flat in pre-launch with booking amount of 1 lac. Due to garbage depo nearby I am cancelling the booking. But builder is saying 50K as penalty. Penalty of 50K was mentioned in booking form. Can I still take some action to get my total 1 lac amount ?

    If the cancellation fee was mentioned, no action can be taken against the Builder as the Booking Form must have been signed by you while making the advance payment.
    Pursuing it in Civil Court shall cost you around Rs.60,000/- to 1,50,000/- in Lawyers’ fees including the time and effort.
    An alternative is that he can approach Consumer Forum for refund of partial amount of money (Rs.50,000/-) claiming that charging 50% of entire advance amount as unreasonable practice by builders in real estate sector.
  • Builder Asking Payment for Increased Super Area

    Hello Legal_Guy,

    Could you pls. help with the below query.

    I had booked a flat in one of the real estate projects in Zirakpur Punjab, in 2011. The builder is now asking payment for an increased Super Area at the current market price. They have increased the Super Area by approx. 50sq.ft. I would like to ask how far is this justified and legality of the same. Appreciate an ealry response.

  • How is the UDS of a Private Builder's Society Calculated?

    Another one, related to the same property.

    I have a flat under construction on the 9th floor of a 13 storey building, in one of the 10 buildings along with a lot of green area built by the builder. The FSI of the whole society is approx. 1.97. Now, the UDS as mentioned in the agreement will be calculated based on the spot area of my building only, whereas I believe since the FSI of the whole society was considered for buidling the multi storey's, the UDS should be the measured based on the whole society area, which should include the open area. Could you pls. comment on this and provide clarity. The society is developing in Punjab.

  • Hi Legal_Guy;, Sir, I have booked a flat in Bangalore which is on the verge of completion in a couple of months. Builder has already given me a copy of Occupancy Certificate. It has BBMP seal, signature etc. But it appears to be not genuine. Pl advise me how can I verify and confirm that the OC is a genuine one. Regards.
  • check the OC with concerned BBMP zone planning authority office.
  • Hi harivishnu;,

    Thank You. I shall revert to you on this after I do that.
  • Hi Legal_Guy;, can you please help me with a query. Recently in April i paid booking amount for a pre launch project (residential plot) from Gaur. The application form states a deduction of 15% after allotment. So far we know the plot number which we have booked(mentioned in application form) but no formal allotment letter/agreement has been signed yet.

    Now does this make me eligible to get back full booking amount if i cancel it now before allotment letter(which the CRM says will be done by mid June)?
  • Mr.Legal Expert,
    We have booked property in year 2010 Oct, in Borivali Mumbai.
    At that time, possession date was committed 2013 Aug. However, Property got registered in 2012, where Delivery timelines changed to December 2015.
    It is 20 Storeyed building. Developer have just built 16 Storeyed. He is doing work at most slow speed. Right now, he is to pay Rs 13 crore to BMC for CC of 17th to 20th Floor. Plus, he has to complete podium, other internal & external building and flat work and constructing the upper floors. Our fund is been diverted to other business or use. Builder, as of date also , not going fast and seriously for completion of project even upto 16th Floor which he has sold.

    How can we, approach Company law board, consumer forum, for getting some independent person on board to sign and release the payment, and order from relevant authorities to use our balance money for building our homes of upto 16th Floor only and hand over possesion in next 4-6 months with delayed compensation and interest.
    Mayur Kanani
  • "At that time, possession date was committed 2013 Aug. However, Property got registered in 2012, where Delivery timelines changed to December 2015.""
    What is the promised delivery date as per registered agreement?
    You can approach consumer court for sorting out the present problem.
    It is obvious that due diligence was not carried out while investing hard earned money.
    The builder is taking advantage of buyers negligence and enjoying free capital.
    Consumer court is the main option if you want to take action.
    Why don't you identify the builder in the forum so others can benefit and avoid.?
  • Hi all,

    The service tax and VAT is applicable only for under construction property. The flat i am looking for is going to be completed in a months time. So if the CC is obtained the ST and VAT is not applicable. But my doubt here is, to get the CC should the builder pay ST and VAT from his side? Kindly reply. TIA.
  • No.
    The builder does not pay VAT or service tax for completed flats with CC.
  • That was quick!! Thanks a ton!!!

    Wanted to negotiate on the above so though il clear it before i do. Thanks again.