What is the legal process to resell an under-construction flat before possession?

Question

I booked a flat in a project that is still under construction, and I now want to sell my booking to another buyer. What is the legal process? I would rather settle this without going to court if the law allows it, but I need to know my rights before I sign anything. Please tell me what to do first and what document to keep.

MyVakeel Legal Desk · Accepted Answer

Under Indian law, Real Estate (Regulation and Development) Act 2016, Section 15 is the starting point for this property law question. What follows is the position in substance, together with the steps that usually make the difference in practice.

Section 15 of RERA requires the promoter's prior written consent before an allottee can transfer their rights and liabilities in an under-construction unit to a third party, and such transfer does not affect the original registration.

Since no sale deed has yet been executed, the original buyer only holds a contractual right under the agreement for sale, so the resale is typically structured as a tripartite assignment or nomination agreement among the builder, original buyer and new buyer.

Any consideration received for the resale, along with the transfer of the agreement for sale, requires proper documentation and adequate stamp duty on the assignment or nomination deed under the applicable state stamp schedule.

Capital gains implications differ depending on whether the right to acquire the flat is treated as a short-term or long-term capital asset based on the holding period from the date of the original allotment or agreement.

The final sale deed at the time of possession must be executed directly between the builder and the new buyer, incorporating the earlier assignment, to ensure the ultimate conveyance is valid and registered under Section 17 of the Registration Act.

What this means for you: 1) Obtain the builder's written consent for transfer as required under Section 15 of RERA; 2) Execute a properly stamped tripartite assignment or nomination agreement; 3) Update the RERA project records and builder's allotment register with the new buyer's name; 4) Ensure the final registered sale deed is executed in favour of the new buyer at possession.

Where the facts are disputed, what usually decides a resale under-construction flat matter is the paper trail — dated complaints, acknowledgments and written replies under Real Estate (Regulation and Development) Act 2016, Section 15. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in property law.