Development charges to builder
4 months ago
If society is registered and ifvany unsold flat of builder is purchased, then can builder ask development charges from buyer? What about Transfer fees of Rs. 25000?
A.Dear Client,
If a society is registered and an individual purchases an unsold flat from the builder within that registered society, the builder's ability to charge development charges and transfer fees depends on the terms outlined in the sale agreement and the society's bylaws. Typically, development charges are associated with the initial construction phase and may not apply to subsequent individual flat purchases. Transfer fees, on the other hand, might be applicable, and the amount would be governed by the society's bylaws.
It is crucial for the buyer to carefully review the sale agreement and the society's rules and regulations to understand the applicable charges. If there are any concerns or ambiguities, seeking legal advice before finalizing the purchase can provide clarity on the rights and obligations of both the buyer and the builder within the context of the specific society and property transaction. Additionally, consulting with the society's management or relevant authorities can help in obtaining accurate information on applicable fees and charges.
If a society is registered and an individual purchases an unsold flat from the builder within that registered society, the builder's ability to charge development charges and transfer fees depends on the terms outlined in the sale agreement and the society's bylaws. Typically, development charges are associated with the initial construction phase and may not apply to subsequent individual flat purchases. Transfer fees, on the other hand, might be applicable, and the amount would be governed by the society's bylaws.
It is crucial for the buyer to carefully review the sale agreement and the society's rules and regulations to understand the applicable charges. If there are any concerns or ambiguities, seeking legal advice before finalizing the purchase can provide clarity on the rights and obligations of both the buyer and the builder within the context of the specific society and property transaction. Additionally, consulting with the society's management or relevant authorities can help in obtaining accurate information on applicable fees and charges.
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A.Dear Client,
According to RERA, the builder is responsible for paying the maintenance fees for unsold apartments until they are sold, after which the buyers are responsible. In addition, society is not required by law to pay the stated maintenance fee for unsold flats. Supreme Court Ruling on Society Maintenance Charges says that the maintenance charges for unsold flats must be borne by the developer till they are sold. There is no cocept or scope of development charges levieble by builder from buyer against unsold flats. The society transfer charges that cooperative housing societies levy on the sale and transfer of shares and rights to apartments in a building are just one of the many costs that house buyers must pay. As per Bye-Law no. 40(d)(vii) under Maharashtra Cooperative Society Act, the Society should collect transfer charges 2.5% of the difference between the book value of the flat and the price realized by the transferor on Transfer of the flat OR maximum Rs. 25,000/- whichever is less.
According to RERA, the builder is responsible for paying the maintenance fees for unsold apartments until they are sold, after which the buyers are responsible. In addition, society is not required by law to pay the stated maintenance fee for unsold flats. Supreme Court Ruling on Society Maintenance Charges says that the maintenance charges for unsold flats must be borne by the developer till they are sold. There is no cocept or scope of development charges levieble by builder from buyer against unsold flats. The society transfer charges that cooperative housing societies levy on the sale and transfer of shares and rights to apartments in a building are just one of the many costs that house buyers must pay. As per Bye-Law no. 40(d)(vii) under Maharashtra Cooperative Society Act, the Society should collect transfer charges 2.5% of the difference between the book value of the flat and the price realized by the transferor on Transfer of the flat OR maximum Rs. 25,000/- whichever is less.
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