Saikat Ghosh
Asked August 20, 2016

Payment to Developer

  • 2 Answers
  • 216 Views

Dear Sir I purchased a flat/apartment in southern part of Kolkata in the year 2000. There was a sale agreement made based on the that I made the payment to the developer. I got possession letter as well as mutation certificate from Kolkata Municipal Corporation. However, the property was not registered partly because of developers' lethergy and rest because of my fault. Now, I want to sell the apartment to a third party purchaser. When I approched developer for fresh registration request, his concern was, if now the property is registered from his firm's name to my name, he has to pay huge taxes because of increase in valuation of property for last 16 years so he is dillidallying the matter without showing much interest. Now my questions are: 1. Is it true that the developer has to pay good amount of taxes for registration bacause of escalation of property valuation? 2. Is it possible to directly have the registration between developer and new purchaser? 3. From new purchaser point of view, whether he is eligible to get the house bulidng loan based on in the present status ( he has no financial problem only concern is the papers are okay). 4. Any other prospective solution which would have lesser financial impact on developer and myself. Appreciate early response from concerned. Thank you very much in advance. Saikat Ghosh

Answers 2

Default avatar
Asmita Rakhecha

To start with, the developer has no liability to pay any taxes for an unregistered apartment. The developer is liable to pay service tax for any under construction apartment but in all other cases, the registration charges have to be borne by the owner of the flat alone. Further, the registration can be done directly by the purchaser without your involvement as such. In this case, you must enter into an agreement of sale with the concerned property and the same must be stamped. The only condition that must be satisfied is that you must be made the confirming party.  The purchaser of the property can apply for a loan of an unregistered apartment.

Agree Comment 0 Agrees 12 months ago

Dear Sir/madam,

We understand your concern to the problem at hand. But let me inform you that Registration of the desired property is mandatory as per law. Registration works on the simple concept of giving the legal right and claim over the property to the owner as well as it helps maintain a record in the books for further buying and selling of the same property. So that some other person does not land up buying the same property in question. Everyone wants an undisputed piece of land.

Here is a parawise reply to your questions :- (answers as per the numbering on the questions)

  • It seems true that the ______________ has to pay good amount of taxes for registration because of escalation of property valuation but the bitter truth attached to it is that the said amount will only increase if not stay constant as and when time passes by. Owner or Developer in the above blank space will be governed as per the sale deed agreement between you (owner) and the developer. Generally, the onus of Registration is on the buyer of the property.
  • Registration requires the names and signatures of the seller and the buyer, thereby excluding you from the picture if there is a direct registration between developer and new purchaser. You will not be able to sell that property, as you are not the title holder of the concerned property and your title is defective as per law, without a registration.
  • Since, you already mentioned in your question, “the only concern is that the papers are okay”. Registration document forms an indispensable part of buying and selling property.
  • I am afraid that there is no other substitute to registration. The amount has got to be whatever it is.
  • Agree Comment 0 Agrees 11 months ago

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