• Buying unregistered flat from NRI seller

I have finalized an unregistered property owned by husband and wife (both NRIs) which they have purchased from builder (Godrej). This is the process that owner is suggesting:

I will pay initial booking amount.

I will prepare MOU on 200 Rs stamp paper( MOU has india address of owners) and send it to Germany. MOU describes payment schedule.

Owner will sign the MOU in Germany and send it back to India and I will then pay 15 percent of the amount to owners account.

Owner will send MOU along with embassy attested POA(poa given to owner's brother).

POA holder will share the MOU with Godrej who will prepare the assignment agreement in favour of me. POA would sign the assignment agreement.

After receipt of assignment agreement and LDC certificate I will pay 35 percent to owner. 

I will share assignment agreement with bank and apply for home loan and bank would pay 50 percent to owner and POA would sign as confirming witness during registration.

Registration would be b/w me and builder(Godrej) and POA behalf of owners will be the confirming witness.

Owner says that 100 percent amount should be deposited in account of husband.

Question 1:
Is it okay to proceed with MOU since it has owners India Address, and it is not attested in embassy and adjudicated in India.

Question 2:
The POA which both husband and wife are giving to husband's brother is only embassy attested. Even Kotak Bank and godrej are saying it is sufficient and it need not be adjudicated.

Question 3:
Owner says to transfer all amount to his account despite it being owned by husband and wife? Is this correct process since both are owners in the sale agreement?

Question 4:
What additional precautions should I take to avoid future complications and legal problems ?

Question 5:
Is there any issue in the process described above ?

Question 6:
I have got all legal documents verified by lawyer and lawyer said all documents about the property are fine including draft MOU and POA and the above process. What other precautions should I take before making payments?

Question 7:
Is there any additional agreements/acknowledgements that I need to collect from Owner ? particularly from the wife since all payments would be made to the husband.

Question 8:
Any additional checks to be done to detect fraud and prevent financial loss.
Asked 2 years ago in Property Law
Religion: Hindu

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5 Answers

1. The original buyers' (as per sale agreement) address is in India but they are actually NRIs, if that is the case what is the necessity for them to sign the  MOU at a foreign country and get it attested by the Embassy or a notary public of that country, then the purpose of showing local address will be defeated.

2. The POA agent is not going to execute the registered sale deed in your favor, he will perform the task of  signing the assignment deed, which is an unregistered document, hence there is no necessity for the POA deed to be adjudicated.

3. Let one person authorise the  other person to receive the amount on behalf of him/her  by issuing an authorisation letter duly attested by a notary public of that country and the person who receives the amount should acknowledge the receipt of entire money which forms part of the co-seller too.

4. It depends on what else your advocate would suggest after  rendering legal opinion in this regard.

5. The advocate who gives legal opinion would be the better person to oversee this and point out any technical flaws in this.

 

 

T Kalaiselvan
Advocate, Vellore
88964 Answers
2418 Consultations

1) MOU should reflect temporary address of Germany . It should be attested before Indian consulate 

 

2) POA attestation before Indian embassy is sufficient 

 

3) only 50 percent to be paid to husband .balance 50 percent to wife 

 

4) obtain no dues certificate from Godrej .

 

5) consent of Godrej to sell you the flat 

 

6) TDS at 23 per cent has to be deducted before making payment as sellers are NRI 

Ajay Sethi
Advocate, Mumbai
98762 Answers
8037 Consultations

1. Let the owners' Germany address and the address in India be incorporated in the MOU.

2. The POA in favour of husband's brother has to be adjudicated in the jurisdictional District Registrar's Office in India.

3.  Obtain a letter from the wife authorising her husband to receive her part of sale consideration also by him and she has no objection to it.

4.  Obtain the sellers' photo identity document.

5.  The Adjudication of POA in the jurisdictional District Registrar's Office has not been mentioned.

6.  If the Lawyer has checked the genuineness of original property/MOU/POA documents, that would suffice.

7.  As already detailed, obtain NOC from the wife to pay her share also the sale consideration amount to her husband.

8.  Check with the builders once again to confirm the process and their consent.

Shashidhar S. Sastry
Advocate, Bangalore
5547 Answers
338 Consultations

Dear client,  

The MOU should be prepared according to the applicable laws and regulations in India. It is recommended to have it properly attested and adjudicated to make it legally enforceable.

The POA should be properly executed and attested in accordance with Indian laws. It is advisable to have it adjudicated to avoid any potential legal issues in the future.

The payment of the entire amount to the husband's account may not be the correct process if both husband and wife are owners of the property. It is recommended to have a clear understanding and agreement on the payment process and ownership of the property.

It is advisable to engage a lawyer to review all the legal documents and agreements related to the transaction. It is also recommended to conduct due diligence on the property, including checking the title and any encumbrances.

The process described above seems to involve several steps and parties, which may increase the risk of complications and legal issues. It is recommended to proceed with caution and seek professional legal advice.

Before making any payments, it is advisable to verify the identity of the owner and the authenticity of the bank account details. It is also recommended to have a written agreement with the owner that outlines the payment process and ownership of the property.

It may be necessary to have a separate agreement or acknowledgement from the wife, especially if she is a co-owner of the property. This agreement should clarify her consent to the payment process and ownership of the property.

To prevent fraud and financial loss, it is recommended to conduct proper due diligence on all parties involved in the transaction, including verifying their identities, checking their backgrounds, and confirming the authenticity of all legal documents and agreements. It is also advisable to use secure payment methods and to have a clear understanding and agreement on the payment process.

 

Anik Miu
Advocate, Bangalore
10718 Answers
123 Consultations

You need to do an indemnity bond in addition 

Prashant Nayak
Advocate, Mumbai
33733 Answers
227 Consultations

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