You can take the dd and sign the transfer papers but possession should be only given once the amount his credited in your account
Hi. I m seller and recently entered into one agreement for sale with respect to one flat in residential Soc registered under Co operative Soc ACT. I have received 30%from buyers owned fund and remaining 70% through bank loan. Bank recently disbursed the loan and handover the cheque to the buyer. Now buyer is demanding to sign on transfer sets for trf of flat from Seller to buyer. But he is ready to handover DD only if I complete tranfer formalities. What should I do in such case? I m ready to sign trf form once the entire consideration gets cr to my account. Is it correct way or not? Kindly advice me on the same. In short.. I should received total consideration & then sign on trf related papers right? Kindly advice
You can take the dd and sign the transfer papers but possession should be only given once the amount his credited in your account
Both go to register office. Make everything ready. Mention all particulars of payment. take photocopy of the draft. Sign the deed and take the draft and sumbit the deed for registration.
this is normal procedure.
1. This shuld be done simultaneosuly.
2. In other words on the day when the deed of sale is to be registered the seller recives the DD in the morning and in the same morning he executes and registers the sale deed.
3. In other words you can not insist on receiving the DD a day before the registration of sale deed.
4. To be on the safer side further you may ask for photocopy of the DD and get it checked from the issuer bank as regards its authenticity.
1) DD should be handed over simultaneously at time of execution of registered sale deed
2) you can also sign the transfer form on same date
3) your contention is absolutely correct
See if bank DD is made you can sign the transfer form he shall handover to you . In case of loan the amount is credited after transfer only.
So of the DD is already made then you don't have to worry.
Do not deliver possession until full payment receive. Ownership will trasfer only registration of sale deed.
Last payment may receive at the time registration of sale deed, same moment.
Mention trasfer papers, physical possession will deliver on full payment.
Thanks for your advice.. The question is pretty simple.. I executed the agreement for sale in the month of June.. Till date I received 30% and 70% through bank loan.. Now bank handover DD to buyer of the entire loan amount.. But buyer is saying you first sign on trf sets (flat trf application to Co op hsg Soc in Maharashtra) n then buyer will handover the DD. but I said kindly handover the cheque first after it got cleared or once the amount got credited to my account I obliged to do handover of docs n initiate membership trf procedures.. Just wanted to confirm is this a correct approach? How can I sign on membership trf papers before receiving the total payment (I know chances of DD getting bounced is very limited but still I don't want to take that risk).. By agreement after receiving the total consideration I obliged to sign on membership trf papers and give all the original docs n handover the possession of the flat.. How buyer demand my signature before actual receipt ot credit of entire consideration to my account?
DD must be of reputed bank . it would not get bounced .
both should be done simultaneously as mentioned herein above
See usually in case of bank DD transfer or sale deed registration is done before.getting DD credited but in case you don't want to transfer it before amount is credited then you can wait till he hands over to you DD and then sign or it can be done simultaneously.
both of you should understand and compromise in the same. If both of you stand adamant with conditions its difficult to complete the transaction
If the buyer is holding the banker's DD then you can very well complete the transfer of property formalities and receive the DD because the DD will not get bounced.
Since you have already received 30% amount towards advance you may not create a fuss over it, based on the prevailing situation you may take a wise decision.
In my opinion your fears are unnecessary because the bank has given the DD from its own account and not from the buyer's account.
Your hesitation may not be justified because since there is a guarantee for payment then you should not insist on this and get the sale process delayed unnecessarily.
What if the buyer is not ready to handover the DD, will you cancel the sale agreement, then the buyer will approach court with a suit for specific performance of contract and you will be dragged into unnecessary civil dispute and tensions therein due to the case and court proceedings.
Think twice and take a wise decision.
in sale deed you can insert a clause with DD number and details. in case if buyer failed to clear DD Or cheque then you can cancel sale deed through court of law.