I am buying a under construction flat in Bangalore from a seller who had booked the flat with the builder at the time of launch of the project.(project will be completed in about 4 months. flat is not yet registered and possession cert not yet given to him) I want to know what is the right way to go about this deal. is it even perfectly legal to get into a deal like this before registration of the flat. what are all the agreements to be executed and what are the things that must and should be mentioned in these agreements.
1) obtain no due certifcate from the builder
2) builder should agree for transfer of flat
3) tripartitie agreement can be entered into between builder , investor and you
4) it should be duly stamped and regsitered
5)check whether title of builder is clear and marketable and building plans sanctioned
6) if you so desire let sale sale deed be executed between builder and investor
7) wait for issue of OC
7) then enter into agreement with seller for purchase of flat by regd sale deed
1. First check with the seller whether the builder is ready unconditionally to substitute you in place of the seller.
2. There may be a cost to be paid by the new buyer to the developer for substitution.
3. Get the documents verified by an advocate to let you know the authenticity of the title and also to let you know about the documents/agreements to be executed by you.
If the sale deed of the flat is not registered yet in favour of the seller then he has no competence to sell it unless the builder executes a GPA in his favour. The title to a property originates and flows only from the sale deed.
Your vendor should hav entered into a sale agreement with the builder on this property purchase.
Under such a circumstance, it would be better you enter into a tripartite agreement with the vendor and the builder so that the interests of all the three will be protected.
Since there is no registered sale deed in favor of the your vendor, he canot execute a registered sale deed in your favor and you cannot insist the builder to do it because you are not the actual buyer as per the agreement with the builder.
Therefore you may go for a tripartite agreement among you three to solve this issue properly as well as legally..
