Transfer fees to be paid to the builder

651 votes

Hello,

It is not mandatory to pay the transfer fees as it violates many of the laws some being quoted by me in this answer itself. However, due to monopoly of the builders in the market the customer is left with no option but to pay the transfer fees, also their is no prescribed fees for transfer of the properties.

1. It violates the Transfer of Property Act, 1882; which states that ‘a transfer of property, passes forthwith to the transferee, all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof’. According to the Act, the owner alone holds the full right to property and the builder has no right, title or interest over the property post registration of the property in the name of the owner.

2. It violates the Indian Contract Act, 1872. It is an extra contractual demand made by the builder on the buyer, which infringes the buyer’s ownership rights.

3. It cannot be equated with the cooperative society’s share transfer fee. A cooperative housing society is the legal owner of the building and the plot of land and the buyer is only a share holder. A builder has no rights over the ownership of the buyer’s property and hence if the buyer wants to sell the property off to a third party, then no payment can be demanded on the part of the builder.

4. As per the complaints coming from metros like Mumbai, many builders argue that they are working on behalf of the cooperative housing society (CHS) to be formed in the future, but in reality they obstruct the formation of CHS so that they can continue to collect the transfer fee.

5. The builders threaten that upon non-payment of transfer charges, the buyer would not be able to sell off the flat. This is a punishable offense under Section 384 and 385 of Indian Penal Code (IPC).

6. The undue influence exerted by the builder is prohibited by Competition Act, 2007. Imposition of unlawful transfer fees by builders is deemed ‘abuse of dominant position’ as defined under section 4 of the Act.


Regards

Advocate Anilesh Tewari LawRato

828 votes

Hello dear ,
we read out your query very carefully, is case mai hum apko yhi advice de skate kuch negotiated ho sakta but neglate ni ho sakta hai , aap unse bat kariye ydi wo negotiated kar sake to

Advocate J. P. Rinwa LawRato

251 votes

Answer: To obtain the NOC, the owner will have to pay a fee of between Rs 200 and Rs 1,000 per sq. foot. This can sometimes bring the price due to the contractor up to 15 lakh rupees.

Advocate Chikirsha Mohanty LawRato