Transfer of flat ownership-West Bengal Apartment Ownership Act 1972
West Bengal Apartment Ownership Act, 1972 and the rules made there against in the year 1974 AND the West Bengal Building (Regulation of Promotion of Construction and Transfer by Promoters) Act, 1993 and the rules made there under in the year 1995 regulate the promotion of construction and transfer of building by promoters in West Bengal. Similar rules and Acts have been enacted in the states of Maharashtra and other states.
Under this law, a builder/promoter intending to construct a building for subsequent sale will have to apply in prescribed form for registration. Such application must be submitted to the authorized officer of the state Government, at least 90 days before starting construction of the proposed building, to seek permission to construct such building. The promoter must be owner of the land where the construction is supposed to be undertaken or there must be a duly registered agreement between the owner of the land and the promoter, authorizing the promoter to undertake construction of building.
The application for registration must be disposed off within 3 months and the authorized officer will issue certificate of registration and grant permission for construction and forward a copy to the authority that has sanctioned the plan for construction of the building. Such certificate and permission will remain valid for 3 years from the date of issue.
Prior to accepting any deposit or money a promoter shall enter into a written agreement with the intending buyer(s) for sale of such flats. The agreement shall be registered under Registration Act, 1908. The ceiling limit for accepting money at the time of entering into such agreement is 40% of the sale price. After such agreement the promoter cannot alter structure of the flat or building or construct additional structure without consent of the intending buyer and permission of the Government authority.
After execution of such agreement the promoter shall not enter into agreement, create any charge or mortgage on the flat or land without consent of the buyer. If the promoter does otherwise, the buyer is entitled to refund of money paid by him with interest @12% p.a. If the construction and delivery of flats is delayed the promoter is liable to refund the money to the buyer with interest @25% p. a. West Bengal Apartment Ownership Act, 1972 is mainly applicable to building for residential purposes.
The West Bengal Building (Regulation of Promotion of Construction and Transfer by Promoters) Rules 1995 provides for the form, fee for registration, permission for, particulars to be incorporated in the agreement for sale, procedure for breach of agreement and period within which the promoter must execute the conveyance.
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