BUYING AND SELLING OF PROPERTY  APURVA AGRAWAL INDIAN MERCHANTS CHAMBERS  LADIES WING DECEMBER 7, 2006
WHAT IS A CHEQUE? <ul><li>The title of the property should be clear,  </li></ul><ul><li>marketable and free from encumbran...
INSPECTION OF DOCUMENTS   <ul><li>Builders liability produce the following  documents   which shall be part of the Agreeme...
<ul><li>Book or Buy your flats only when Builder  </li></ul><ul><li>has obtained BMC permission’s like I.O.D. , </li></ul>...
CONSTRUCTION OF BUILDING <ul><li>Flat purchaser should check that the </li></ul><ul><li>construction is according to the s...
AGREEMENT FOR SALE <ul><li>Upon receipt of the any payment  exceeding </li></ul><ul><li>20% of the sale price of the flat,...
PAYMENT SCHEDULE <ul><li>PAYMENT SCHEDULE should be according  </li></ul><ul><li>to the progress of the work, under the  <...
DETAILS OF FLAT PURCHASERS <ul><li>The Developer must prepare and maintain </li></ul><ul><li>details of other flats purcha...
STAMP DUTY  <ul><li>Stamp Duty is payable on the higher of the  </li></ul><ul><li>market value of the property or on  </li...
<ul><li>Agreement for Sale has to be registered with  </li></ul><ul><li>the Sub-registrar of Assurances on whose </li></ul...
CHANGE IN PLAN / SPECIFICATION <ul><li>All conditions with regard to infrastructures  </li></ul><ul><li>should be approved...
DELAYED COMPLETION OF BUILDING <ul><li>In case of delayed completion beyond the  </li></ul><ul><li>period stipulated under...
<ul><li>The Builder should specify in writing the date  </li></ul><ul><li>on which the possession of flat is to be </li></...
DEFECTIVE CONSTRUCTION <ul><li>The Builder should attend to all bonafide  </li></ul><ul><li>complaints of defects expediti...
ACCOUNT OF PAYMENTS  <ul><li>The Builder should maintain  </li></ul><ul><ul><li>(a)  separate account in respect of sums  ...
SOCIETY FORMATION <ul><li>The Builder has to form the society </li></ul><ul><li>Builder should submit an application to th...
REMEDIES <ul><li>The remedies available to the Flat Purchaser  </li></ul><ul><li>against Builder are the following: </li><...
PENALTIES <ul><li>The penalties that maybe imposed on the  Builder are as under: </li></ul><ul><ul><li>CONSUMER PROTECTION...
PENALTIES  …Contd SPECIFIC RELIEF ACT AND INDIAN CONTRACT ACT    (a)  The Flat Purchaser can get the specific    performan...
PENALTIES  …Contd <ul><li>MAHARASHTRA OWNERSHIP OF FLATS ACT ,  1963 </li></ul><ul><ul><li>Contravention of Sec. 3,4,5,10 ...
THANK YOU
CONTACT US <ul><li>UNIVERSAL LEGAL </li></ul><ul><li>5th Floor, Kimatrai Building </li></ul><ul><li>77/79 Maharshi Karve R...
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Presentation Buiider Apurva

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Presentation Buiider Apurva

  1. 1. BUYING AND SELLING OF PROPERTY APURVA AGRAWAL INDIAN MERCHANTS CHAMBERS LADIES WING DECEMBER 7, 2006
  2. 2. WHAT IS A CHEQUE? <ul><li>The title of the property should be clear, </li></ul><ul><li>marketable and free from encumbrances </li></ul><ul><li>All dues on the property should have </li></ul><ul><li>been paid </li></ul><ul><li>Always use the services of a competent </li></ul><ul><li>Advocate for verifying the title of </li></ul><ul><li>Property </li></ul>TITLE
  3. 3. INSPECTION OF DOCUMENTS <ul><li>Builders liability produce the following documents which shall be part of the Agreement of Sale </li></ul><ul><ul><li>Approved plans/specification </li></ul></ul><ul><ul><li>Commencement certificate </li></ul></ul><ul><ul><li>I.O.D. </li></ul></ul><ul><ul><li>Occupation Certificate </li></ul></ul><ul><ul><li>Building Completion Certificate </li></ul></ul><ul><ul><li>Title Certificate </li></ul></ul>
  4. 4. <ul><li>Book or Buy your flats only when Builder </li></ul><ul><li>has obtained BMC permission’s like I.O.D. , </li></ul><ul><li>sanction of plans and commencement </li></ul><ul><li>certificate from the Concerned Authorities </li></ul>BOOKING / BUYING OF FLAT
  5. 5. CONSTRUCTION OF BUILDING <ul><li>Flat purchaser should check that the </li></ul><ul><li>construction is according to the sanctioned </li></ul><ul><li>plans and specification granted by </li></ul><ul><li>Concerned Authorities. </li></ul><ul><li>The Builder must ensure good quality </li></ul><ul><li>materials and proper workmanship </li></ul>
  6. 6. AGREEMENT FOR SALE <ul><li>Upon receipt of the any payment exceeding </li></ul><ul><li>20% of the sale price of the flat, the Builder </li></ul><ul><li>has to execute the Agreement for Sale </li></ul><ul><li>Carpet area of the flats should be clearly </li></ul><ul><li>and unambiguously defined in the </li></ul><ul><li>agreement of sale </li></ul><ul><li>The nature, extent and description of all </li></ul><ul><li>AMENITIES and common facilities to be </li></ul><ul><li>clearly mentioned in the Agreement </li></ul>
  7. 7. PAYMENT SCHEDULE <ul><li>PAYMENT SCHEDULE should be according </li></ul><ul><li>to the progress of the work, under the </li></ul><ul><li>provisions of the MOFA, 1963 / MAOA ,1970 </li></ul><ul><li>The Builder should not enhance (Escalation) </li></ul><ul><li>the price of flats on any account whatsoever </li></ul><ul><li>once the agreement for sale is executed </li></ul><ul><li>except for additional government </li></ul><ul><li>levies/taxes/court orders </li></ul>
  8. 8. DETAILS OF FLAT PURCHASERS <ul><li>The Developer must prepare and maintain </li></ul><ul><li>details of other flats purchaser like their </li></ul><ul><li>names, flat numbers, addresses, price </li></ul><ul><li>charged etc. </li></ul>
  9. 9. STAMP DUTY <ul><li>Stamp Duty is payable on the higher of the </li></ul><ul><li>market value of the property or on </li></ul><ul><li>consideration paid under the agreement </li></ul><ul><li>Document has to be adjudicated before </li></ul><ul><li>stamping </li></ul><ul><li>The rate of stamp duty payable is 5% </li></ul><ul><li>The stamp duty has to be paid before signing </li></ul><ul><li>or executing the document i.e. Agreement for </li></ul><ul><li>Sale </li></ul>
  10. 10. <ul><li>Agreement for Sale has to be registered with </li></ul><ul><li>the Sub-registrar of Assurances on whose </li></ul><ul><li>jurisdiction the property is located </li></ul><ul><li>Registration should be completed within four </li></ul><ul><li>months from the date of execution of the </li></ul><ul><li>Agreement for Sale </li></ul><ul><li>The present registration fee is 1% of the </li></ul><ul><li>market value of the property or the </li></ul><ul><li>consideration whichever is higher subject to a </li></ul><ul><li>maximum limit of Rs. 30,000/- </li></ul>REGISTRATION
  11. 11. CHANGE IN PLAN / SPECIFICATION <ul><li>All conditions with regard to infrastructures </li></ul><ul><li>should be approved by Municipal authority / </li></ul><ul><li>Planning authority and fully complied with </li></ul><ul><li>the same </li></ul><ul><li>No alteration, additions or deviations in the </li></ul><ul><li>plan and specifications of the buildings </li></ul><ul><li>without the consent of the Flat Purchaser </li></ul><ul><li>once the same is furnished and disclosed to </li></ul><ul><li>the Flat Purchaser </li></ul>
  12. 12. DELAYED COMPLETION OF BUILDING <ul><li>In case of delayed completion beyond the </li></ul><ul><li>period stipulated under the 'Agreement for </li></ul><ul><li>Sale’ </li></ul><ul><ul><li>Demand for refunding the amount received </li></ul></ul><ul><ul><li>by the Builder / Developer with interest @ 9 </li></ul></ul><ul><ul><li>% p.a. or as specified in the agreement </li></ul></ul><ul><li>OR </li></ul><ul><li> (b) Wait for completion and get the possession </li></ul><ul><li>of the flat </li></ul>
  13. 13. <ul><li>The Builder should specify in writing the date </li></ul><ul><li>on which the possession of flat is to be </li></ul><ul><li>handed over to the Flat Purchaser and </li></ul><ul><li>ensure timely possession </li></ul><ul><li>The Builder should obtain completion and </li></ul><ul><li>occupation certificate prior to giving </li></ul><ul><li>possession of the flat to the Flat Purchaser </li></ul>POSSESSION
  14. 14. DEFECTIVE CONSTRUCTION <ul><li>The Builder should attend to all bonafide </li></ul><ul><li>complaints of defects expeditiously </li></ul><ul><li>The defect liability period of the Builder is </li></ul><ul><li>three years from date of completion of the </li></ul><ul><li>building </li></ul><ul><li>If the Builder fails to rectify the defect in the </li></ul><ul><li>building, the Flat Purchaser has a right to </li></ul><ul><li>receive reasonable compensation </li></ul>
  15. 15. ACCOUNT OF PAYMENTS <ul><li>The Builder should maintain </li></ul><ul><ul><li>(a) separate account in respect of sums received for purposes such as the capital </li></ul></ul><ul><ul><li>for promotion of the society, towards the </li></ul></ul><ul><ul><li> maintenance till the society is formed, etc </li></ul></ul><ul><ul><li>(b) the same should be utilize only for those purposes for which it was collected </li></ul></ul>
  16. 16. SOCIETY FORMATION <ul><li>The Builder has to form the society </li></ul><ul><li>Builder should submit an application to the </li></ul><ul><li>Registrar within four months after atleast ten </li></ul><ul><li>persons or 60% of total flat is sold or have </li></ul><ul><li>taken possession of the flats </li></ul><ul><li>It is the duty of the Builder to cause the </li></ul><ul><li>conveyance of the title and interest in the land </li></ul><ul><li>and the building to the society. </li></ul>
  17. 17. REMEDIES <ul><li>The remedies available to the Flat Purchaser </li></ul><ul><li>against Builder are the following: </li></ul><ul><ul><li>A complaint in Consumer Forum as </li></ul></ul><ul><ul><li>deficiency of services under Consumer </li></ul></ul><ul><ul><li>Protection Act 1986 </li></ul></ul><ul><ul><li>(b) Suit for specific performance under </li></ul></ul><ul><ul><li>Specific Relief Act, 1963 and Indian </li></ul></ul><ul><ul><li>Contract Act,1872 </li></ul></ul><ul><ul><li>(c) Criminal complaint under the Maharashtra </li></ul></ul><ul><ul><li>Ownership of Flats Act , 1963 </li></ul></ul>
  18. 18. PENALTIES <ul><li>The penalties that maybe imposed on the Builder are as under: </li></ul><ul><ul><li>CONSUMER PROTECTION ACT: </li></ul></ul><ul><li>(a) remove the defects complained of ; OR </li></ul><ul><li>(b) return the price to Flat purchaser ; OR </li></ul><ul><li>(c) pay compensation if any injury is suffered </li></ul><ul><li>by the Flat Purchaser ; OR </li></ul><ul><li>(d) provide for adequate costs </li></ul>
  19. 19. PENALTIES …Contd SPECIFIC RELIEF ACT AND INDIAN CONTRACT ACT (a) The Flat Purchaser can get the specific performance of the breach under the Agreement for Sale OR (b) Adequate Compensation
  20. 20. PENALTIES …Contd <ul><li>MAHARASHTRA OWNERSHIP OF FLATS ACT , 1963 </li></ul><ul><ul><li>Contravention of Sec. 3,4,5,10 or 11, leads to punishment for maximum imprisonment of 3 years or with fine or with both </li></ul></ul><ul><li> (b) Contravention of Sec 5, leads to imprisonment for a term which may extend to </li></ul><ul><li> 5 years or with fine or with both </li></ul><ul><li>(c) Contravention of any other provisions, on conviction, may be imprisoned for a term </li></ul><ul><li> which may extend to 1 year or with fine or with both </li></ul>
  21. 21. THANK YOU
  22. 22. CONTACT US <ul><li>UNIVERSAL LEGAL </li></ul><ul><li>5th Floor, Kimatrai Building </li></ul><ul><li>77/79 Maharshi Karve Road </li></ul><ul><li>Mumbai – 400 002 </li></ul><ul><li>Phone : 2203 4293 - 95 </li></ul><ul><li>Fax : 2203 9845 </li></ul><ul><li>E-mail: [email_address] </li></ul>

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