Legal Question in Real Estate Law in India
Feedback on Residential Buying of Property
Hi,
We have paid 95% of the building cost to the builder for a flat booked in Oct, 2006. Right now, I am facing a problem where the concerned builder is asking for payment for a service tax (as stipulated by the govt.) of 2.5% via cheque to him. My understanding was that this payment has to be made by the builder and not the customers. If we refuse to pay this amount, can this be used by the builder as a deterrent in holding back the registration of the building in our name ? The registration date is scheduled as sometime in end of September, 2008. What legal options do we have ? Also the builder is asking for External Development Costs (which includes electricity charges other than meter costs, sewerage, etc.) which were not mentioned as part of the payment annexure at the time of booking. Can the builder hold back giving us posession if we do not pay these ?
4 Answers from Attorneys
Re: Feedback on Residential Buying of Property
Make the payment of the stipulated cheque amount along with the covering letter heading without prejudice payment. Also, after you take possession and other hand over documents, file a consumer complaint against the builder.
Re: Feedback on Residential Buying of Property
Kindly read entire agreement with the builder, may be with the help of your lawyer.
If there is a provision towards taxes etc., then you have to pay.
If there is a provision towards other charges, then you have to pay.
If there is no provision in the agreement for taxes and other charges, but the local act governing flats provides for the same, then also you have to pay.
Otherwise, you are not liable to pay.
Re: Feedback on Residential Buying of Property
If the payment asked for is not covered under the Agreement,YOU NEED NOT PAY.IN THAT CASE,YOU CAN APPROACH A CONSUMER COURT TO GET POSSESSION.
Re: Feedback on Residential Buying of Property
The question is not strictly legal. In law even if the builder is wrong, you have very few options. considering the entire situation, you are advised to take possession of the property from the builder by making payment of the demanded amount and avoid litigation.
The court system is not very fast and inexpensive. you will end up in wasting more time, energy and money if you decide to fight a court case.
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