I'm planning to buy a RESALE 3BHK Flat with Covered Parking in Kolkata from a person who's a SALE AGREEMENT HOLDER (along with her daughter who has given him a Registered General Power of Attorney since she works in Canada) directly with the Developer (Magnolia Group). Her daughter took a Home Loan from LIC Housing previously but paid off the entire loan according to her father. The person, as of now, is just a Sale Agreement Holder with the Developer and has not registered the property yet. What safeguards should I take and what documents should I verify to buy this property. It's in Rajarhat, Kolkata and is a Gram Panchayat Area. Is it safe to proceed towards buying this property and registering the same with the developer with the Sale Agreement Holder being the Confirming Party and if YES, what documents should I ask the 1) Agreement Holder & 2) Builder MAGNOLIA INFRASTRUCTURE DEVELOPMENT LIMITED to provide? Please help.
Dear Client,
Sale agreement is not valid sale and transfer of ownership. Actual purchaser is still a builder and sale deed will execute with him only.
To avoid stamp duty, daughter might not have executed sale deed. Process direct sale from builder and delivery of all original documents. POA, sale agreement, OC , CC etc.
1) seek no dues certificate from builder
2) transfer charges payable and whether seller would bear the transfer charges
3) building plans sanctioned by panchayat and building completion or OC issued
4) take 30 years search report that title is clear and marketable
5)tripartite agreement should be entered into between seller , you and builder .
1. NOC from the bank evidence of loan settlement.
2. Verify the title documents of land builder is having flats on.
3. Approved plans from Gram panchayat and OC.
4. Further in the sale deed the first party will be builder and the agreement holder shall be confirming party.
5. Share certificate over common facilities.
It would be better for you to take proper legal guidelines by showing complete files of your case to an advocate so that you can take a right path to handle your issues. Vague answers will not give you the exact relief .
With reference to the first required document as stated by Advocate Shubham Jhajharia, my question is do I need the NOC as evidence of loan settlement from LIC Housing IN ORIGINAL or a photocopy of the original should suffice?
if loan has been repaid seek original or certified copy from LIC
1. please take out a search report from sub-registrar to ensure no third party rights are created by builder on the flat you intend to buy
2. you need to check all the development permissions and approvals on RERA website for this project
3. also issue a public notice in newspapers announcing that you intend to buy this property from so and so and ask for objections against this sale from the public
4. its advisable to make both father and daughter as confirming parties
5. you may have to pay transfer fee to builder
See the photo copy will suffice , the same would be evidence that bank is not having any claim over the property same will safeguard your rights.
1. Conduct a search with the Panchayat/Registrar to ascertain whether any sale deed has been registered in connection with the said flat of not since it is ordinarily unlikely that LIC has provided loan without taking deposit of the original sale deed or entered in to a registered tripartite agreement with the seller (allotee), the vendor and LIC.
2. Ask for 'No-Due' certificate issued by the LIC and release of the mortgaged porperty( the flat) from the seller.
3. The fact is that the seller is not yet the title holder of the said property for which he can not sell the said flat.
4. The procedure to be adopted for buying such allotted flat in Rajarhat area is as follows;
a. Collect search report about the land.
b. Collect copy of the development agreement and check existence of its original.
c. Collect the original allotment letter issued to the seller by the develper.
d. Issue a mail to the developer informing that you want to buy the flat from the allottee for which you nee his consent to reallot the said flat in your name cAncelling the name of the original allottee based on his request letter.
e. Ask for the dues of the said allottee and whether there is any agreement the developer has signed with any lending bank/LIC or not agreeing not to sell thye said flat to any other person or not.
5. Thereafter enter in to a tripartite agrement between your said seller, the developer and you wherein you shall agree to pay the agreed amount, the allotte will agree for substitutiing your name as allottee in his place and the developer will; agree for reallotting your name in place of the said allottee on receipt of reallotment charge.
6. The entire process is very delicate and there is every chance of being cheated for which you shall have to be extreemely careful before making the payment.
1. You shall have to collect the 'No Due ' certificate issued by the LIC after receiving the final repayment amount.
2. LIC shall also have to certify that there is no security interest presently exists on the said flat in favour of LIC.
You have to obtain NOC or no due certificate from LIC indicating the loan was repaid in full.
Since there is a sale agreement you may have to enter into a tripartite agreement.
You confirm the genuineness of other relevant documents by obtaining legal opinion from a local lawyer.
Yes you certainly have to obtain No due certificate as well as an endorsement by LIC stating that the loan was fully discharged otherwise the LIC may come to you for recovery of the loan amount.
You consult a local lawyer, obtain legal opinion and may proceed only if recommended.