Thursday, April 16, 2009

DLF to resell apartments to refund buyers - penalties applicable.

DLF may resell apartment units which were booked by customers who now want to exit its projects, and if there is going to be a loss in such a resale deal, it is likely to be transferred to those wanting to exit. DLF also plans to charge a penalty, since the customers had already entered into a 3-year contract with DLF to purchase the apartment unit and now want to exit within a year.

The article quotes analyst opinion that such a resale is likey to reduce the rates by 10 to 15 per cent.

Read the news at MSN News []

In normal cases, when a new apartment is sold by a builder, the UDS alone is registered at the Sub-Registrar's office (at the guideline value of the land), while the buyer enters an construction agreement with the builder. In case of resale, the complete value of the apartment is to be registered in the sale deed, driving up the registration and stamp duty charges.

As per earlier reports on the UDS issue in DLF Garden City [], DLF had not taken the UDS + construction agreement route. So, the the implications on the stamp duty front for the proposed resale is not very clear.

(This post is now part of the Discussion on DLF GardenCity, OMR, Chennai)

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