Payment to Developer
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
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.
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)
Why not create one now for free in under 10 minutes!