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Confusion regarding a clause in the agreement.

Q: Hi, I recently bought a villa and have got the agreement and registration done. However, my query is regarding the "Assignment Charges" clause in the agreement. It says,
The purchaser shall not assign/transfer his/her/their interest under this agreement without the prior written consent of the Seller/Developer. In the event the Seller/Developer provides its consent for assignment of Purchasers' interest in this Agreement, then a transfer fee of 20% of Sale Consideration shall be payable by the purchaser to the Seller/Developer, however it is exempted if the assignment is made within the family members;
My question, once registration is done, why should i take the permission from the developer to sell it? Also, it appears to me that the clause is applicable perpetually and any day I were to sell the property I would have to pay the developer 20% of the sale proceeds.
Is this how every developer writes the agreement? Is there something wrong or am I being apprehensive?

Reply

Replies (4)
1
Hello Mr.Kiran, First thing you need to understand is whether its Sale agreement you have registered or the Sale deed, If its Sale Agreement then you need to talk to builder and get that 20% reduced to 2% to 3% if its the Sale deed then please ask the builder to delete the resale clause he mentioned and correct it to - Seller has got all the legal rights to sell the property and has got the marketable and selling rights.
2nd January 2014
Comment


2
Hi All,

I think it is not correct on the part of the developer to charge towards assignment charges that he has mentioned in the agreement. Better to take a legal opinion about this.
Seshagiri Mehra


3
Hey,

Make sure that you do not get duped by the developer. Anyway consult a lawyer about this proceeds.
Navneet Gupta


4
HI Kiran,

Since you are mentioning that you have to pay a 20% of sale proceeds to the developers even though you have got the agreement and registration done, looks like the developer is taking you for a ride by charging such phenomenal fee.
Darshan Shetty


5

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