All about exit charges

HT Estates - - NEWS -

What are trans­fer charges? When a buyer wishes to exit from a pro­ject, a developer usu­ally im­pose exit charges for ‘ad­min­is­tra­tion work’ and change of name in their records. The amount gen­er­ally varies from ₹ 100 per sq ft to

₹ 1000 per sq ft

No le­gal ba­sis: In the ab­sence of a real es­tate reg­u­la­tor, most de­vel­op­ers in In­dia de­mand a trans­fer fees from apart­ment own­ers when they want to sell their apart­ment. This is il­le­gal

Builders get the first right of re­fusal: This is be­cause banks gen­er­ally ask for a no-ob­jec­tion to mort­gage cer­tifi­cate from the builder, fail­ing which the loan can­not be availed and the buyer can­not sell the flat

It can be con­tested: Charg­ing trans­fer fee is il­le­gal as it vi­o­lates the Trans­fer of Prop­erty Act, 1882, under which the owner alone holds the full right to prop­erty. It is also a pun­ish­able of­fence under Section 384 and 385 of the IPC

Trans­fer fee by co­op­er­a­tive so­ci­eties: Co­op­er­a­tive hous­ing so­ci­eties levy trans­fer charges and trans­fer pre­mi­ums ac­cord­ing to the bye-laws. The trans­fer fee charged by the so­ci­ety has le­gal ba­sis, as in an ex­ist­ing co­op­er­a­tive so­ci­ety, the owner of the flat only holds a share

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.