Asked September 27, 2020

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Hello, I bought a flat in Bangalore in a complex of 168 flats. It is a resale flat and the registration has been completed. The apartment association has issued me a letter demanding a transfer fee payment of Rs 5/- per sft to the apartment owners association for changing the name of the flat to my name. When contested, they have cited apartment by-laws which were formed before the sale transaction date which contained a Rs 5/- per sqft of transfer fee from the buyer and the seller. My questions are: 1.Can the apartment owner associations collect fee for changing the owner name to my name in the form of transfer fee, legally? 2.In my sale deed I have clearly mentioned that any outstanding dues and fees to the apartment association is the responsibility of the seller. The apartment association says that transfer fee payment comes into picture only after the registration of the flat and hence the demand. What recourse I have in this case? I think seller will not pay this amount as the transaction is done from his side. Please advise. Thanks, Ananth

Answer 1

Dear Ananth,

Query no. 1 -

First we need to consider what is your flat area so that you could calculate the total amount as demanded by the Society. Please note that the Society or Association cannot charge an amount more than Rs. 25,000/- as transfer fees. The amount charged as transfer fees cannot exceed albeit you are making a voluntary donation. There are other aspects involved in the calculating the transfer fees i.e. the transfer fees cannot be beyond about 2.5% of the difference of value. Please calculate the amount demanded as the same cannot be done by me as the flat area is not mentioned.   

Query No  2 -

The transfer fees cannot be included in the head under outstanding dues as the same are attracted upon the application for the transfer. Therefore the information in this regard is correctly communicated to you. Furthermore there may be a clause in your agreement stating the liability of transfer fees and stamp duty and other charges, which usually is borne by the purchaser in general transactions.   

Hope the above solves your query.



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