Hi, I am planning to buy a plot at Bangalore from a local real estate vendor. Currently he is having plots in 1 acre and he is planning to extend for 2nd phase with remaining 4 acres besides to it. But he is asking 20 lakhs in advance and providing 600 rs per sq feet less price compared to market price. It looks he is genuine and he had multiple land bank. But my concern is how to make this agreement legal. Booking a plot which expected to come in 6 months to 1 year. He is agreeing for agreement stating survey number and amount received and check for sane. Is it advisable to go for registered agreement or shall I wait till new phase come up and loose 600 rd profit per sqft. Or is there alternative to secure my 20 lakhs by agreement and avail discount. He is agreeing to pay 2 lakhs extra if agreement gets cancelled if legal verification fails.
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1) check whether title of vendor is clear and marketable
2)dont be in hurry to book plot now
3) if at all you pay any advance enter into regd agreement for sale
4) purchase only if layout plan is sanctioned by BBMP
5)before legal verification dont make any payments
6) contact a local lawyer
1. Conduct dud diligence through a local lawyer to ensure that the title of the builder is free and marketable. Nobody can convey a title better than his own title.
2. An agreement to sell does not require mandatory registration. Even an unregistered agreement to sell is legally enforceable in the same manner and vigour as a registered one.
3. Get all the documents vetted by your lawyer.
1. First of all legal scrutiny of the documents has to be done.
2. If there are no impediments in the legal scrutiny of the documents, then you may proceed further by getting the agreement of sale executed and paying the advance amount.
3. To protect your advance money of Rs.20 lakhs, ask him to execute Indemnity Bond in your favour.
Hi All, Thanks. So, I can go for Agreement only after document verification. But here for 2nd phase, no documentation is available and not even GPA is not done by landlord. For phase 1, same Landlord has given GPA in which I am not interested. But real estate vendor, is saying I am in process of getting legal documents for 2nd phase so surely u get 2nd phase but if u pay now I may give 300 rs less price per sq.ft. He is saying i will get allotment letter, check for 20lakhs for security, receipt for 20 lakhs and agreement for 2nd phase by mentioning plot will be allocated in so and so survey number. Even after getting these documents, is it risk in paying without document verification? He is ready to pay 2 lakhs extra if legal verification fails in 2nd phase.
1) it is risky to pay any money to builder without verification of documents
2) it is better to pay more money to builder and purchase the plot after plans are sanctioned by the BBMP
A. Don't go with this builder.
B. In Bangalore, innumerable builders are collecting funds to invest and clear their liabilities (loan clearance,Government expenses, commitment resolve). They never purchase any land for construction and they will first collect the money and execute the agreement by offering 2 to 5 lakh additional amount. But, once the agreement is cancelled that they will issue post dated cheque and it will be bounced with insufficient fund. Later, you need to consult advocate to file recovery of money suit and should spend time before Court and Advocate office. According to sources, 10,000 cheque bounces cases have been filed under this grounds.
C. However, the following precaustions to be taken if you want to enter into agreement with the builder viz.,
1. The builder must be enter into registered Sale Agreement with the land owner and you have to get the survey number details and conversion of the property details.
2. Contact directly land owners to get clear clarity with respect to the same.
3. Check the land status in Government website, CDP/ODP or any notification for road widening etc.,
4. Check the builder background as to how many projects completed so far?
5. Read the terms and conditions of the agreement and pay through cheque
6. Check the builder legal status, example: Private company, Partnership Firm, Limited Liability Partnership, Proprietorship etc., check who is going to sign in your agreement, whether that person has authorization or not? if company, get certificate of incorporation to get how many directors in the company, if partership, get partnership deed and registration of firm
7. If you knows Survey Number details, the collection of the documents in revenue department is very easy. 1 -2 days is enough.
8. Finally, don't enter into agreement unless received minimum documents
The oral assurances will not stand when there is a dispute on this in the later stage.
The seller may appear very genuine now where as the greed will blind any genuine person's eyes when it matters.
It i not advisable to to invest any money without entering into a registered sale agreement.
The false assurances and the tall promises will not vouch for the money invested and you will find it very difficult to recover the same when it would be needed by you.
Better consult a local advocate before proceeding in such frolic adventures.
But real estate vendor, is saying I am in process of getting legal documents for 2nd phase so surely u get 2nd phase but if u pay now I may give 300 rs less price per sq.ft. He is saying i will get allotment letter, check for 20lakhs for security, receipt for 20 lakhs and agreement for 2nd phase by mentioning plot will be allocated in so and so survey number.
More such promises will be made by the real estate brokers to lure the innocent customer to their trap and to ditch them when the time ripens.
Without a valid and registered agreement, it would not be advisable to invest such a huge amount.
Even after getting these documents, is it risk in paying without document verification? He is ready to pay 2 lakhs extra if legal verification fails in 2nd phase.
There is no guarantee or his promise.
What makes him to offer the plots at such a low price, it means that there is some shadow cast in this deal, hence you may better obtain a proper legal opinion from an advocate in the local before taking any decision in this regard.