Transfer Charges by Builder
Builder has No Right to Claim Transfer Charges from the Flat Buyers There is no legal basis on which a builder can levy transfer charges on the apartment owner. However, numerous complaints have been brought to the forefront related to illegal demand of transfer fee by the builder. According to complainants, the builder succeeds to exert influence as banks and home financing companies demand that the buyer procure a ‘No objection to Mortgage’ certificate from the builder, failing which the loan cannot be availed. Also, the builder takes on the responsibility to form the society or condominium and can manipulate undue influence by leaving out a particular owner’s name as a member of the society. Why is transfer fee to a builder illegal? It violates the Transfer of Property Act, 1882; which states that ‘a transfer of property, passes forthwith to the transferee, all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof’. According...