Hello, I am in talks to buy an apartment in under construction project from Land Owner share. The developer has started construction and the project should be completed by end of 2019 (incl. 6 month grace period). The mediator has given me copies of DGPA and Supplementary agreement. In addition to this I have asked for draft of agreement between me and the owner and partition deed (total land owners > 30). The title of the land seems to be clear. The process now as per mediator is (1) agreement between me and land owner at ~15% of the total deal value (2) registration within 30-40 days (3) disbursal of entire amount on the next day of registry My doubts here 1. What all should I check so that I do not get duped? 2. IS it possible to register an under construction flat? 3. Can I directly go for registry without agreement (this will eliminate any risk of loosing money after signing agreement)? 4. One housing finance company has agreed to disburse almost 70% of the deal value at once, is it legal? Shouldn't it be only construction linked? BTW this is a category A builder for all the banks 5. The agreement between developer and land owner asks the land owner not to sell below rate being quoted by the developer. But in this case I am being offered a lower price. If everything is good and I go ahead with the deal will there be any issues later on because of this clause?
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1)take 30 years title search
2) get written opinion from
Advocate that title is clear and marketable
3) you can register your agreement for sale
4) if builder is category A and reputed housing finance company is ready to advance loan they would do due diligence before advancing loan
5) you would face problems if landowner sells you flat before sale price as under agreement flat cannot be sold at lesser rate
1. I consider it unwise to purchase under construction builder projects in this country as majority of builders are fraudsters. Be that as it may, conduct due diligence to ensure that the title is free and marketable. What may 'seem' may not actually exist.
2. An under construction flat can also be registered.
3. Direct sale deed can also be executed without entering into an agreement to sell, but to be on a safer side execute an agreement before sale deed.
4. There is nothing illegal in what the finance company has proposed to do.
A buyer should exercise utmost caution while buying property in India. Buying a flat that is under construction is often very risky.ask the seller to provide all original documents for perusal. Things you should check before buying a resale flat.
List of documents required
1. Sale deed (Present Title deed) in name of present seller.
2. Encumbrance Certificate from date of purchase till date
3. Latest tax receipt and electricity bill & receipt for the said flat
4. NOC from the society for sale of the flat and Share certificates issued by the society if any.
5. Mother Deed’ or parent document
6. Agreement of sale & construction executed by developer in favour of seller(Ask to produce original agreement with builder)
7. Khata certificate & extract from BBMP
8. Sanctioned building plan
9. Possession/occupancy certificate from builder
10. Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
11. Power of attorney/s if any
12.Peruse the development agreement between land owner and builder.
Register sale agreement with land owner .Development agreement between land owner and builder is very important in your case. As per the recital in the agreement the land owner could not sold the flat at lesser rate.
You have to verify the title documents, upto date tax paid receipts, khatha or 7/11 or pahani records, conversion approvals, plan approvals and other relevant documents related which may be BBA, GPA between the land owners and builders/promoters, agreement between owners and builders etc.
Under construction flat cannot be registered.
Unregistered agreement may not be enforceable in court of law in the event of any future dispute.
This may be an eye wash or a collusion between the builder and the NBFC which need to be scrutinised properly since there may be any hidden agenda in it which would be disastrous in future.
There certainly arise an issue and the developer may even approach court with an application for stay, then you would be put into unnecessary troubles.
