• Flat sale agreement and commercial setup by builder

Hi,
I went for a sale aggrement for a flat whose first two floors were built for commercial purposes and the next two floors for residential purposes. In July 2020 when I did the sale aggrement the commercial floors was used as Marriage hall. 
I already paid 80% of the sale amount and registration and possession is due.

Now, after receiving the 80% of the amount, the Vendor is converting the commercial space for Multi Speciality Hospital with OT and 14 bed for patient.

I objected as such hospital with residential flats will be problematic to which the Vendor replied as he will make separate entry for flat users.

Later, he came with an undertaking and asked me to sign on it, mentioning that I will not create any objecobjection to what ever business he will do on his commercial floors. I denied to sign any such paper as it was not part of initial sale aggrement.

There are two flat already occupied and people living in it is Vendors known people who have signed on this undertaking. He is now telling that he will put this condition in Sale deed for us to accept before registration.

I want to understand, is this legally permitiable to have hospital with residential floors.?
Is he legally correct to put such conditions in Sale deed which was not mentioned in Sale aggrement.?
Shall I ask for counter terms in Sale deed like safety, security and peace to be ensured by vendor on operating his business ?
With this conflict can I approach court for refund of my money. Will my case be strong enough. ?
The aforementioned to complete registration process is Within Dec 2020.

Regards,
Misbah
Asked 4 years ago in Property Law
Religion: Muslim

2 answers received in 30 minutes.

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6 Answers

Vendor cannot impose such conditions in sale deed 

 

2) best option is to cancel the sale by mutual consent and ask seller to refund your money 

 

3) if seller refuses to refund your money file suit and seek court orders for refund of your money with interest 

Ajay Sethi
Advocate, Mumbai
96715 Answers
7797 Consultations

Hello,

  1. There is no hard and fast rule that prevents same premises from having both residential and commercial uses of the structures provided permission is procured from the concerned Local body government like the Municipal corporation.
  2. You have every right to seek inclusion of conditions that ensure safety and security as a user of the residential portion off the premises
  3.  There is nothing that can stop you from approaching the court for refund if the Builder refuses to refund however in the absence of any specific precondition of having commercial use your case will not be quiet quite convincing in any case you can get a refund subject to whatever conditions that are there in the agreement

S J Mathew
Advocate, Mumbai
3595 Answers
175 Consultations

Dear Sir/Madam,

It is suggested that this is not legally permissible to have hospital with residential floors and also not legally correct to put such conditions in Sale deed which was not mentioned in Sale agreement. You are very well authorised for the counter terms in Sale deed like safety, security and peace to be ensured by vendor on operating his business. You are also free to approach court for refund of your money. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

1. Was the project RERA complied? 

 

2. The Builder can not deviate from the terms which have been mentioned in the Agreement.

 

3. You can send a complaint letter to the local Municipal Corporation requesting them not to grant permission for opening a hospital in the said premises.

 

4. If the Municipal Corporation fails to comply with your request, you can file a Writ Petition before the High Court praying for a direction upon the Municipal Corporation not to permit the Builder to open a Hospital in the said building.

Krishna Kishore Ganguly
Advocate, Kolkata
27421 Answers
726 Consultations

- As per law, no commercial activity allowed in the residential area without the permission of authority, and housing complex.  

- Only a fixed area can be legally used for commercial purpose limited to official use only , i.e. can be used for services by resident advocates, chartered accountants, doctors ,tutorials, .

- Further, one can use the bungalow/ flat for commercial purpose provided the commercial use shall be completely professional in nature, and it should not cause nuisance to other dwellers of the building /society, and approvals from the competent authority are required.

- Further, the owners of such holdings should inform the municipal corporation before converting a residential complex into a commercial . 

- Hence , a complaint can be lodged before the local police, and higher official, and further forwarded the said compliant copy to the authority as well for a legal action. 

- Further , no such conditions are legal in nature , and cannot be mentioned in the sale deed . 

- Further , you can claim refund your entire paid amount with 10 percent interest due to the said fault of builder /vendor , after filing a complaint before the Consumer Forum in Jhakhand. 

Mohammed Shahzad
Advocate, Delhi
14406 Answers
221 Consultations

Since it is a commercial space, the builder may use it for any type of commercial occupation of the space meant for commercial purposes.

You cannot stop the builder from doing all such mischiefs because he is having an upper hand overt this, he may manipulate everything in his favor and make you to run from pillar to post to get your grievances redressed, which may not be possible for you over a period of time.

If you are not interested in going ahead with the purchase of the property, you may issue a legal notice to the builder based on the terms and conditions of the sale agreement in which the presence of construction of only a marriage hall was mentioned instead of the proposed hospital  and can seek for cancellation of the sale agreement   and demand payment of entire booking amount with interest from the date of booking since the builder played a fraud on you  on this.

You can approach RERA after the developer declines to accept your demands for refund of the booking amount ion your terms.

 

T Kalaiselvan
Advocate, Vellore
86915 Answers
2331 Consultations

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