Legal Question in Real Estate Law in India
a Co-op society owns a land. It signs Development Agreement with a Developer. Developer issues Allotment Letter for a flat to a Buyer against full payment. Developer could not construct the building. Can the Buyer seek proportionate interest in the undivided land?
1 Answer from Attorneys
24.07.2013
Dear Sir / Madam,
A developer cannot acquire a better title to the property that what he is entitled to as per the Development Agreement. In the given case, if the Developer has taken full payment for a flat without constructing the building, it remains the sole legal responsibility of the Developer to return the money to the notional flat holder. In no way can the buyer seek proportionate interest in the undivided land of the Society, simply because he was entitled to become a member, if and only if the Developer had completed the development, admitted the flat owner as a member of the Society and handed over possession of the flat. The buyer's rights are towards the flat and he has nothing to do with the land belonging to the Society.
Regards,