Future registration of resale under-construction flat
I am buying a flat under-construction after making an assignment agreement (3 parties: builder, seller, myself). Seller told that at the time of registration he need not be present. He informed, that builder will be consenting party and it will be clear when I see the Assignment agreement. My question: can you please advise what all I should check in the Assignment agreement. Is it correct that at the time of registration original buyer should not be present at all.
Asked 2 years ago in Property Law from Bangalore, Karnataka
Hi, unless and until we go through the entire documents it is very difficult to answer your question however seller may execute Power of attorney in favour of Builder.
The seller is wrongly representing you. The title holder or the owner of the flat , the seller in this case can only sell the flat unless he executes a POA in favour another person.
In other words in your case the seller will have sign the sale deed without whose signature the sale would not be valid.
Deed of assignment will not do.
Thank you Pradeep and Devajyoti. Tell me something please. At this stage when the flat is under construction, I have gathered that the builder has just given some intimation letter about allotment and sale and construction agreement to the original buyer in their letterhead I believe (I am yet to see the papers myself). None of the papers are registered in any sub-registrar's office/ equivalent government body. So practically, the original buyer has some papers which practically have no big value in court of law. It is all in good faith as of now, not anything strictly legal. Am I thinking it correctly?
Asked 2 years ago
1) it is necessary to peruse assignment agreement to advice .
2) since seller is selling you flat his signature is necessary .
3) it is better before you sign the agreement you consult a local lawyer
1)have you taken inspection of the alleged allotment letter?
2) have you done due diligence before purchase of flat ?
3) have you checked whether title of builder is free and marketable and free from encumberances?
4) are the building plans duly sanctioned by muncipal corporation?
5) dont take any hasty decision of purchase of flat
Hi, it is better you have to take legal opinion from the advocate then only you can go ahead with transaction.
1. The entire agreement should be got vetted threadbare from a lawyer.
2. The seller is misrepresenting to you that he need not be present at the time of registration. The present owner's personal presence at the time of registration is indispensable unless he executes a Power of Attorney in favour of some one authorizing the latter to execute the sale deed on his behalf.
1. Carry out due diligence of the property. Do not rush into signing the agreement.
2. Find out whether the property is free from an encumbrance. The title has to be marketable.
3. It should also be ascertained whether the building plans have been sanctioned or not.
4. A property purchased without due diligence preceding the purchase is an open invitation to a long drawn litigation which may result in you being dispossessed from the property.
1. There should be a tripartite agreement to be signed by the builder, the original buyer and also you,
2. The assignment agreement is requited to be seen to comment further.
1. If the original buyer has got the allotment letter only, then there shall have to be a another agreement for changing the allotment from the earlier allottee to you,
2. In such cases the builder charges some fees for making such reallotment,
3. If the flat is finally allotted to you, then the earlier allottee need not appaer for registration.
if flat is only allotted in the name of original buyer then he has no title in the flat so he can't sell it but builder has right to sale that property. only allotment does not confer right in the property. you should check the status of the original buyer in the allotment deed. be confirm that is there any power of attorney executed. you should demand to give all papers regarding the flat. if builder has executed any sale deed to the original buyer then builder lost his power to sale that flat.