This document summarizes important considerations and legal requirements for buying and selling property in India. It outlines steps that should be taken to ensure clear title, inspect documents, follow proper procedures for booking, construction, agreements, payments, possession, defects, society formation, available remedies, and penalties for non-compliance. Key points include verifying title is clear and encumbrance-free, inspecting required construction permits and approvals, ensuring agreements clearly define terms, following proper processes for payments, possession, and post-sale support. Non-compliance with laws could result in legal action or criminal penalties.

1. BUYING AND SELLING OF PROPERTY APURVA AGRAWAL INDIAN MERCHANTS CHAMBERS LADIES WING DECEMBER 7, 2006

2. WHAT IS A CHEQUE? The title of the property should be clear, marketable and free from encumbrances All dues on the property should have been paid Always use the services of a competent Advocate for verifying the title of Property TITLE

3. INSPECTION OF DOCUMENTS Builders liability produce the following documents which shall be part of the Agreement of Sale Approved plans/specification Commencement certificate I.O.D. Occupation Certificate Building Completion Certificate Title Certificate

4. Book or Buy your flats only when Builder has obtained BMC permission’s like I.O.D. , sanction of plans and commencement certificate from the Concerned Authorities BOOKING / BUYING OF FLAT

5. CONSTRUCTION OF BUILDING Flat purchaser should check that the construction is according to the sanctioned plans and specification granted by Concerned Authorities. The Builder must ensure good quality materials and proper workmanship

6. AGREEMENT FOR SALE Upon receipt of the any payment exceeding 20% of the sale price of the flat, the Builder has to execute the Agreement for Sale Carpet area of the flats should be clearly and unambiguously defined in the agreement of sale The nature, extent and description of all AMENITIES and common facilities to be clearly mentioned in the Agreement

7. PAYMENT SCHEDULE PAYMENT SCHEDULE should be according to the progress of the work, under the provisions of the MOFA, 1963 / MAOA ,1970 The Builder should not enhance (Escalation) the price of flats on any account whatsoever once the agreement for sale is executed except for additional government levies/taxes/court orders

8. DETAILS OF FLAT PURCHASERS The Developer must prepare and maintain details of other flats purchaser like their names, flat numbers, addresses, price charged etc.

9. STAMP DUTY Stamp Duty is payable on the higher of the market value of the property or on consideration paid under the agreement Document has to be adjudicated before stamping The rate of stamp duty payable is 5% The stamp duty has to be paid before signing or executing the document i.e. Agreement for Sale

10. Agreement for Sale has to be registered with the Sub-registrar of Assurances on whose jurisdiction the property is located Registration should be completed within four months from the date of execution of the Agreement for Sale The present registration fee is 1% of the market value of the property or the consideration whichever is higher subject to a maximum limit of Rs. 30,000/- REGISTRATION

11. CHANGE IN PLAN / SPECIFICATION All conditions with regard to infrastructures should be approved by Municipal authority / Planning authority and fully complied with the same No alteration, additions or deviations in the plan and specifications of the buildings without the consent of the Flat Purchaser once the same is furnished and disclosed to the Flat Purchaser

12. DELAYED COMPLETION OF BUILDING In case of delayed completion beyond the period stipulated under the 'Agreement for Sale’ Demand for refunding the amount received by the Builder / Developer with interest @ 9 % p.a. or as specified in the agreement OR (b) Wait for completion and get the possession of the flat

13. The Builder should specify in writing the date on which the possession of flat is to be handed over to the Flat Purchaser and ensure timely possession The Builder should obtain completion and occupation certificate prior to giving possession of the flat to the Flat Purchaser POSSESSION

14. DEFECTIVE CONSTRUCTION The Builder should attend to all bonafide complaints of defects expeditiously The defect liability period of the Builder is three years from date of completion of the building If the Builder fails to rectify the defect in the building, the Flat Purchaser has a right to receive reasonable compensation

15. ACCOUNT OF PAYMENTS The Builder should maintain (a) separate account in respect of sums received for purposes such as the capital for promotion of the society, towards the maintenance till the society is formed, etc (b) the same should be utilize only for those purposes for which it was collected

16. SOCIETY FORMATION The Builder has to form the society Builder should submit an application to the Registrar within four months after atleast ten persons or 60% of total flat is sold or have taken possession of the flats It is the duty of the Builder to cause the conveyance of the title and interest in the land and the building to the society.

17. REMEDIES The remedies available to the Flat Purchaser against Builder are the following: A complaint in Consumer Forum as deficiency of services under Consumer Protection Act 1986 (b) Suit for specific performance under Specific Relief Act, 1963 and Indian Contract Act,1872 (c) Criminal complaint under the Maharashtra Ownership of Flats Act , 1963

18. PENALTIES The penalties that maybe imposed on the Builder are as under: CONSUMER PROTECTION ACT: (a) remove the defects complained of ; OR (b) return the price to Flat purchaser ; OR (c) pay compensation if any injury is suffered by the Flat Purchaser ; OR (d) provide for adequate costs

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. PENALTIES …Contd MAHARASHTRA OWNERSHIP OF FLATS ACT , 1963 Contravention of Sec. 3,4,5,10 or 11, leads to punishment for maximum imprisonment of 3 years or with fine or with both (b) Contravention of Sec 5, leads to imprisonment for a term which may extend to 5 years or with fine or with both (c) Contravention of any other provisions, on conviction, may be imprisoned for a term which may extend to 1 year or with fine or with both

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