CHENNAI: Eight people purchased plots for villas from a builder and registered the property in our names in 2015. Based on the construction agreement, the company has built villas for us. A couple of days back, the builder started calling some of my neighbours, asking them to get a signed affidavit from a person from whom the builder had initially purchased the whole land prior to conducting business with us. This particular person was given a villa by the builder in our premises, which he has been trying to sell off. There is a possibility of that person placing the whole land under loan since he has the original document and this can lead to some disputes for us later. Though we have informed builder that it is his problem to sort out this issue, he says he cannot do anything for us. Can any financial institution disburse loan based on this original document? How can this original document be available with one owner once transfer of land has been registered? Can’t EC or any registration department checks provide the details of the actual owners which is us, to avoid loans being disbursed? Is there any way, We can ensure we will not get impacted in any other way?
— Karun
Since all the flat owners would have purchased undivided share of land with a registered document, the same transaction will be reflected in the original sale deed. Therefore if any intending buyer applies for a encumbrance certificate, these transactions will be found in that document. Hence you need not worry. In any event, in the agreement with the builder, there will be a clause relating to handing over of original documents to the association after completion of the construction and handing over the flats. Therefore you can ask the builder to handover the original document to the association.
Ours is a two-storey building. Both the floors have two flats of 2,000 sqft and 1,000 sqft each. We have a lift being used by residents of first and second floors. The flats are owned by my sisters and myself. One of my sisters own two flats. I want to know how to apportion the maintenance charges. My brother-in-law, says it should be apportioned based on the area and so it is 1/3 for all of us. My contention is it is shared by four families and so the expenses should be 1/4th for me and my first sister and 1/2 to my second sister, who owns two flats.
— S Gopalan
The normal method of fixing maintenance can be based upon the total square feet occupied by an occupant and therefore your second sister is right in stating that the maintenance should be shared on the basis of one third each. In any event, you are only giving extra money if any only to your sister.
Some of us purchased property from developers who were doing a real estate project with approval from DTCP. While the project was in progress the RERA act came in. We were hoping that protection under the act would be available. The developer did not apply for registration, but utilised some provisions under the act and obtained exemption. This rule, we are told, exempts projects in which slabs and columns had been cast although other work remained incomplete. The dwelling units were delivered only from the end of 2017. We understand that the relative Rule 2 is not valid in the context of the act. Please enlighten us about the correct interpretation of the rule and suggest possible ways of getting the benefits under the act.
— Subramaniathiagaraja
Your query is not very clear. But however I am able to understand that your builder had obtained exemption under the Act. Section 3(2) (a) of the RERA Act provides for exemption of projects which are situated in 500 sqm or having eight apartments. Therefore, if your project comes within the scope of this exemption, then there will be no difficulty for the builder to get exemption from the govt. Even otherwise, there are other provisions granting exemption on different circumstances. There is no Rule (2) in the Rule Book as referred to by you relating to exemption. Since the main enactment provides for exemption under certain circumstances rules can also be framed taking the power from the main act. Hence, there is no scope for challenge of any such rule.
Justice K Chandru @expertexplains@gmail.com
is a former judge of the Madras High Court