Is underconstruction flat allowed to sell
2 months ago
I have purchased an underconstruction flat in Mumbai, possession is in 2025. Since I don't have funds to pay for the flat, I would like to sell it. However the builder told me I can't sell until possession is given. What do I do.
A.Dear Client,
Under the Provincial Insolvency Act, 1920 (which is now repealed as IBC Code 2016), you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing whether the conditions for filing of bankruptcy have been met, the court may accept or reject the application. Until the decision on the application is taken, an interim receiver takes possession of the property of the debtor. If the application is admitted, the court can apply a stay on any legal proceedings against the property or assets of the debtor. In other words, you can get a stay order against further recovery efforts by your creditors. Once your application is admitted, your under-construction property vests with the “receiver; appointed by the court. This official then distributes your assets among the creditors, unless a compromise proposed by you has been accepted by your creditors and the court. Alternatively, you can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it is typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with a certain amount of fees/service charges. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could f
Under the Provincial Insolvency Act, 1920 (which is now repealed as IBC Code 2016), you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing whether the conditions for filing of bankruptcy have been met, the court may accept or reject the application. Until the decision on the application is taken, an interim receiver takes possession of the property of the debtor. If the application is admitted, the court can apply a stay on any legal proceedings against the property or assets of the debtor. In other words, you can get a stay order against further recovery efforts by your creditors. Once your application is admitted, your under-construction property vests with the “receiver; appointed by the court. This official then distributes your assets among the creditors, unless a compromise proposed by you has been accepted by your creditors and the court. Alternatively, you can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it is typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with a certain amount of fees/service charges. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could f
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A.Dear Client,
In some cases, it may be possible to sell a flat without taking physical possession after the builder completes the construction, depending on the terms and conditions outlined in the sale agreement and the policies of the developer. However, it's crucial to review the legal and contractual aspects before attempting to sell a property without physically possessing it.
Here are some considerations:
1. Check the terms of the sale agreement with the builder. Some developers may allow property transfers before possession, while others may have specific clauses or restrictions.
2. Consult with a legal professional to understand the legal implications of selling a property without physical possession. There may be specific legal requirements or permissions needed for such transactions.
3. Selling a property without physical possession may impact the confidence of potential buyers. They might be hesitant to invest in a property they can't physically inspect.
Remember that real estate laws and practices can vary, so it's crucial to seek personalized advice based on your specific situation and the regulations applicable in your region. Always prioritize transparency and adhere to legal requirements when selling a property to ensure a secure and lawful transaction.
In some cases, it may be possible to sell a flat without taking physical possession after the builder completes the construction, depending on the terms and conditions outlined in the sale agreement and the policies of the developer. However, it's crucial to review the legal and contractual aspects before attempting to sell a property without physically possessing it.
Here are some considerations:
1. Check the terms of the sale agreement with the builder. Some developers may allow property transfers before possession, while others may have specific clauses or restrictions.
2. Consult with a legal professional to understand the legal implications of selling a property without physical possession. There may be specific legal requirements or permissions needed for such transactions.
3. Selling a property without physical possession may impact the confidence of potential buyers. They might be hesitant to invest in a property they can't physically inspect.
Remember that real estate laws and practices can vary, so it's crucial to seek personalized advice based on your specific situation and the regulations applicable in your region. Always prioritize transparency and adhere to legal requirements when selling a property to ensure a secure and lawful transaction.
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