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Transfer fees demanded by builder for selling my unregistered flat in Bangalore
Question
I have purchased a flat in Bangalore on loan in an under construction gated apartment. Since the project is nearing completion, almost 90% of the amount is paid by me to the builder. We have not yet registered the flat as it has few months of work to be completed. We are looking to sell it immediately and here is where the builder is demanding transfer charges of approximately Rs. 200 per Sq ft to provide NOC so that we can sell to the new buyer. Is it legal to demand transfer charges on the first place? It is amounting to almost 2 to 3 lakhs for a 1100 sft flat at Rs. 200 per sft. In my Agreement of sale, it is no where mentioned of such transfer charges. There is also a chance that the builder will refuse to provide NOC in case I refuse to pay transfer charges and ask me to go ahead with cancellation, which will lead to me losing 10% of complete amount as cancelation charges. Please advice.
Answer ( 1 )
Transfer charges cannot be charged by the builder, it is prohibited under the Competition Act and would amount to abuse of dominant position as per section 4 of the Act. further, If the charges of the transfer fee was not found mentioned in the agreement, the builder cannot take a U-turn now. It is advisable to approach the consumer forum against such misuse of dominant position and deficiency in service