I have purchased an under construction flat from a reputed builder. It is an apartment complex with more than 250 flats. Before booking the flat I enquired a lot of about the legality of the property. The land was under a gram panchayat earlier, builder got approval from gram panchayat/BDO and started construction. Later the area was acquired by the city development authority.
City development authority evaluated the plan and determined that the G+8 construction is not permissible in that area and sent demolition notice to builder. The builder approached district court, and later High Court of the state and got judgment favoring them.
I read the honorable High Court order and decided to purchase the flat on condition that “builder will resolve all litigations for the property as and when it arises”. The same was written in the sale agreement document. My home loan was approved by SBI.
In the meantime City Development Authority appealed in front of Honorable Supreme Court. I got to know the SLP number. Since then I keep on checking the status/latest order of the SLP on Supreme Court website. There have been 4 dates till now, builder has not responded/provided required documents in Honorable Supreme Court.
The builder is planning to hand over the flat next month and pressurizing us to get the registration done. In the registration document, they are mentioning “the property is litigation free”. I have requested them to mention “litigation is pending, builder will be responsible in resolving the issue”, they rejected my request.
I purchased the flat just because they mentioned in the agreement that they will take care of all litigations. Now, they are not ready to mention the same in registration document. What can I do in this circumstance?
I read somewhere that the builder needs to obtain “Completion Certification” before handing over the property to buyers. Is that true?
If true, which authority will provide “Completion Certification”? Is it City Development Authority?
Should I wait for “Completion Certification” before getting the registration done?
What will happen if Honorable Supreme Court reverses the High Court order?
Few of my friends have already got the registration done. Will they be responsible for payment of legal battle with City Development Authority in future?
I have invested all my hard earn money in this flat. I have already paid 85% of total cost. Please help me.
Below are the first 2 clauses from the agreement document. 1st clause says builder will indemnify if any false declaration is made. 2nd clause says “property is litigation free” which I know is incorrect. So, does it ensure that I’ll be compensated if Honorable Supreme Court’s verdict goes against the builder?
1. In consideration of an amount of ------------------------------------------ only has been paid by the purchaser to the vendor, the receipt of which the vendor has acknowledged and hereby admits and the vendor hereby grants, transfers, conveys, assigns and assures unto the purchaser the proportionate impartible undivided share in the land in question with building as set out in the schedule given below together with all rights, privileges, easements, appendages and appurtenances attached thereto. Resultantly the purchaser shall enjoy and hold the said proportionate impartible and undivided share in the land with the building absolutely and for ever and the vendor doth hereby covenant that not withstanding any act, deed or thing done by him, he has a clear and marketable title over the land in question to grant and convey the proportionate interest in the land in favour of the purchaser, who shall at all times, here-after peacefully and quietly hold, possess and enjoy the said proportionate impartible undivided interest in the land with the building as indefeasible owner thereof without any let, interruption , claim or demand whatsoever from or by the vendor or any person claiming any title or amount to the interest of the vendor. The vendor further states that he shall at all times here-after at the request and cost of the purchaser executed or cause to be executed any further acts, deeds, conveyances, assurances for assuring the said proportionate impartible undivided interest in the land with the building as detailed and delineated in the schedule set out below in favour of the purchaser and the vendor, his heirs, successors shall at all times here-after indemnify and keep indemnified the purchaser against any loss, damage etc., if any, suffered by the purchaser by reason of any defect or deficiency in title of the vendor or any breach of the declaration here-in-obtained.
2. The vendor doth hereby declares that the property is not the subject matter of any suit or litigation and the same has not been attached by any court or authority in any proceeding. The land in question has not been notified under any notification issued under the Land Acquisition Act and there is also no scheme in contemplation or proposal for acquisition of the land for any purpose whatsoever.
