Read between the lines
You must carefully go through the clause on transfer charges while signing the builder-buyer agreement
The transfer fees clause differs from builder to builder and depends on the availability of stock i n a particular project. Therefore, while signing t he builder- buyer ag rement (BBA), make sure that you’ve gone through it carefully. Here are some clauses taken from different BBAs of developers in Delhi NCR. “The seller/confirming party shall not entertain any transfer/nomination/assignment request till one year from the date of booking of the said unit.” This means that the buyer will not be allowed to sell the apartment for at least a year after booking it.
Another agreement of a Gurgaon project reads: “The allottee shall not sell, transfer, assign or part with his/her/ their/its right, title or interest in the said unit or any portion thereof until all the dues or charges payable to the company are fully paid and a sale deed has been executed in his/ her/their/its favour. The allottee is, however, entitled to get the name of his/her/their/its assignee substituted in his/ her/their/its ts place with the prior approval val of the company who may at its sole discretion permit the same on such terms rms and conditions ions and charges s as it may deem m fit. The allottee shall pay to the company transfer charges as applicable from time to time in respect of such substitutions or nominations.” This clause makes it clear to the buyer that the builder has the first right to decide if the buyer can sell his unit or not and that transfer fees will change from time to time.
A BBA signed between a buyer and a builder in Noida also clearly states that “...the company may at its sole discretion permit such substitution (transfer) and assignment on such terms and conditions as the company may deem fit and proper and in accordance with applicable laws...”
Another agreement specifically mentions the amount that the buyer will have to pay in the event of a transfer. “Transfer of the benefits under this allotment in favour of the third party may be allowed but after paying administrative charges at the rate of ₹ 100 per sq ft to … and with prior permission of ….which … would be entitled to grant or refuse at its discretion.”