Tripartite agreement can be entered into between seller , purchaser and builder for the sale of flat
2) obtain no dues certificate from builder
3) also insist that transfer charges to builder would be paid by the seller
My ralative is negotiating to purchase a flat from a person Mr X. During the discussion, he came to know that Mr X has booked the property from the builder some 5 years back and builder has executed a Registered Agreement for Sale with Mr X. Mr X availed housing loan from a bank on the basis of registered agreement for sale. flat is ready for possession now. Mr X has paid full consideration for the flat as on date.But Mr X has NOT got the property registered in his name by a regisrered sale deed till date as he has decided to sell the property for some personal reason. builder is ready to cooperate with Mr X in selling the property. Can my relative legally purchase the property and how?
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Tripartite agreement can be entered into between seller , purchaser and builder for the sale of flat
2) obtain no dues certificate from builder
3) also insist that transfer charges to builder would be paid by the seller
Who should my relative pay the money to? who will refund money to Mr X, builder or my relative?
Hi
Since Mr.X has a registered agreement of sale in his favour and also that he has availed bank loan, your relative can enter in to negotiations / agreement with Mr. X as the transaction is perfectly legal and valid in eyes of law.
The steps proposed are as follows:
1) Your relative should pay the Money to Mr.X as he has entered in to the agreement of sale with the builder.
2) Prior to payment of monies to Mr.X , your relative should ascertain
a) from the bank of any impending dues from Mr.X
b) From the builder of any impending dues from Mr.X to the builder.
3) The banker and builder will issue No objection certificate after clearance of dues if any (dues may be cleared either by Mr.X directly or by your relative for and on behalf of Mr.X) . Please note that No Objection certificate is mandatory prior to registration of property.
4) A sale deed needs to be registered at prevailing fair market value and the sale deed will have 3 parties.
a) The builder as the seller of the property
b) Mr.X will be arrayed as the consenting party to the sale deed and
c) Your relative as the buyer of the property.
5) In the event of unlikely event of a failed transaction, Mr.X will be responsible to refund the money to your relative.
Hope this information is useful.
Since the property has already been under registered sale agreement or the buyer can enter into a tripartite agreement with the vendor and the builder for getting the sale deed executed and registered i his favor on the basis of cancellation sale agreement already executed in the name of the present vendor.
The tripartite agreement may contain the further terms and agreement for execution of the registered sale deed in favor of the buyer now.
Who should my relative pay the money to?
who will refund money to Mr X, builder or my relative?
The payment of consideration amount shall be decided and drawn accordingly in the tripartite agreement.
Take the help of a local advocate in case there is any confusion and wish to have further opinion/suggestion on this.