The Haryana Real Estate Regulatory Authority (HRera) has held that the right to alienate property is an essential right of an owner and that a fully paid buyer cannot be prevented from transferring the property merely because the promoter has delayed execution of the conveyance deed.
The ruling, dated September 10, 2026, followed a complaint filed by Sukhvir against Apex Build-well concerning a commercial shop in a project in Sector 37C, Gurugram. The authority also directed the promoter to pay 11% annual interest on more than ₹27 lakh, along with compensation for mental harassment and litigation expenses.
Buyer Had Paid Full Consideration
According to the case details, Sukhvir had paid ₹27 lakh to the promoter and taken physical possession of the commercial shop. The promoter obtained the occupation certificate (OC) for the project on February 24, 2020.
Under Section 17(1) of the Real Estate (Regulation and Development) Act, 2016, the conveyance deed was required to be executed within three months of the occupation certificate. However, the conveyance deed in Sukhvir’s favour was executed only on January 5, 2023.
During the intervening period, Sukhvir sought to transfer the commercial property to Shiv Kumar and Priyanka Sharma. The proposed purchasers had completed the required formalities and submitted the necessary documents and undertakings.
However, the promoter did not execute the conveyance deed in favour of the proposed purchasers, which prevented the transaction from being completed.
HRera Recognises Right to Alienate Property
HRera observed that the right to alienate property allows an owner to voluntarily sell, transfer, gift or assign property rights. According to the authority, denying such a right can amount to a violation of the owner’s legal rights.
The authority noted that a fully paid property buyer cannot be left without a remedy to transfer the property simply because the promoter has failed to execute the conveyance deed.
In this case, the delay in completing the conveyance process effectively deprived Sukhvir of the opportunity to complete the proposed transaction when he required funds.
Adjudicating officer Rajender Kumar directed Apex Build-well to pay 11% annual interest on ₹27,05,344 for the period from May 24, 2020, to January 5, 2023.
The promoter was also directed to pay ₹1 lakh towards mental harassment and agony and ₹50,000 towards litigation expenses.
Ruling Clarifies Promoter and Buyer Rights
The order draws a distinction between a promoter’s obligation to execute the conveyance deed and the property rights available to a buyer who has already paid the full sale consideration.
The ruling indicates that a promoter cannot rely on its own delay in completing conveyance formalities to prevent a fully paid allottee from dealing with the property. In the present case, the authority considered the delay and its effect on the buyer’s proposed transfer while determining compensation.
At the same time, the order does not mean that registered conveyance deeds or other legally required documentation are unnecessary for property transactions. The significance of the ruling lies in the finding that a promoter’s pending conveyance obligations cannot, by themselves, be used to arbitrarily restrict the rights of a buyer who has fulfilled the payment obligations.
The HRera order could be relevant to buyers who have paid the entire sale consideration but are awaiting execution of their conveyance deeds.
For such buyers, delays in completing documentation can affect their ability to sell, transfer or otherwise deal with their property. The ruling provides a legal basis for challenging situations where a promoter’s delay in executing conveyance documentation effectively prevents a fully paid buyer from pursuing a proposed transfer.
The case also reinforces the importance of timely execution of conveyance deeds after completion of the applicable statutory requirements. For property transactions in Gurugram and elsewhere in Haryana, the order highlights the separate responsibilities of promoters and the property rights of fully paid buyers.
