They are made document between builder and contractor power of attorney. You don't have any problems

You can enter into residential construction agreement between builder and the contractor for completing balance construction work and for collecting balance amount from flat purchasers

Hello,

M/s. ABC Builder and M/s. XYZ Contractors can enter into a formal MOU (residential construction agreement) wherein all the purposes will be mentioned, alongwith the right and duties of both the parties.

Get the same stamped and notarized.

Regards

1) deed of assignment has to be duly stamped and registered

2) get it drafted by local Lawyer

Hi, both the developer can make a MOU ( memorandum of understanding ) and get it notarised .. The MOU shall have a binding effect in both the parties, and on default of one party the second party can approach the court of law

As advised earlier a MOU has to be entered upon by both the parties.

It has to be a registered MOU and the bank will also accept the same.

Contact a local lawyer

Regards

Usually the builder is suppose to prepare all documentation whenever he assigns his part of job in favor of third party by way of Memorandum of Understanding. It must be registered and it must contain relevant clauses in respect of authorizing such third party to receive the remaining amounts from the purchases and/or respective bankers, directly.

Usually a copy of such MoU shall be furnished to both the purchaser, the bank and the third party and normally the bankers will oblige such contracts/agreements between builder and the third party.

Issue on Appeal

At issue for the High Court was:

Did the Builder owe a duty of care to the Owners Corporation which was independent to the duty of care it owed to the Developer?

Did the Builder owe a duty of care to the Developer and by extension to the Owners Corporation?

Held

In four separate judgments, the High Court unanimously set aside the decision of the Court of Appeal holding that for a duty of care to be imposed in novel circumstances (such as this), there must be a requisite degree of ‘vulnerability’. This required an inability to protect itself or its interests from the kind of harm suffered.

Dear Client,

Arrangement between M/s. ABC Builder & M/s. XYZ Contractors has no binding effect both of purchasers and bank until all purchaser agreed to otherwise sole responsibility will be of ABC for any default.

Both above have to present arrangement to the bank with condition precedent that in case of any default on part of XYZ, ABC will be liable. and NOC for whatever payment will be made to XYZ,

1. The matter is not in between ABC and XYZ parties only.

2. the said matter involved 78 individuals who booked the flats and paid 75% of the price.

3. A Tripartite agreement shall have to be entered in to and registered where in all the parties will agree to and be responsible for the new arrangement.

4. If any of the said individuals has availed loan from the Bank who has entered in to agreement with the borrower and also with the builder stating that he will not sell it to any other person/organisation.

5. So, another set of tripartite agreement between the borrower, the bank and the new party hall have to be executed wherein the old builder will be the consenting party.

The original sale agreement and the BBA as well as construction agreement are between the original builder and the buyer alone, now the original builder cannot shed away their liabilities or responsibilities just like that and they cannot enter into any such contract without the consent or permission of the purchasers.

The original builders may give sub contract to some other contractor for completing the project but cannot hold the contractor responsible for completion and all other formalities.

The contractor is in no way bound to answer the problems of the buyers just because they have entered into a contractual agreeent with the original builder in this regard.

It may not be legally tenable.

The proposed agreement between abc and xyz may not be valid in the eyes of law.

Requirement :-

Hence , they want to make such Documents vide which Cheques must come in name of M/s. XYZ Contractors only and not in the names of M/s. ABC Builder and such Documents must be acceptable to the Bankers of Purchasers , too

Please guide which Document and whether need to be registered or notarised

In my opinion, without making a fresh agreement by the original builders with the purchasers involving the new contractor, i.e., a tripartite agreement, the desired proposal may not be legally tenable.

The purchasers may not agree for this proposal and they cannot be legally forced to pay to a third person becasue there is no agreement between the buyers and the new contractor.

The buyers will be losing their rights if there is no valid contractual agreement between them and the new contractor hence it may be considered as illegal and invalid.

The buyers may not prefer such an agreement which would harm their interests in the property.

The original builder cannot design any such agreement at this stage, instead he has to remain as the original builder till the construction is completed, OC procured and the premises handed over to the association that may be formed subsequently.

It can help M/s XYZ contractor to collect cheques in its own name as per clause contained in deed of assignment

Yes, certainly.

1. The said assignment may not be acceptable by all the flat owners without registering a tripartite agreement as explained in my earlier post. Unless the flat owners agree, they may not agree to pay the amount to XYZ in absence of the tripartite agreement make XYZ liable in case of any lapses.

2. Moreover, the lending Banks also are required to be involved in to the matter by getting an agreement executed wherein ABC will be substituted with XYZ and all the guarantee/assurance given by ABC to the lending Banks in connection with providing housing loans to the borrowers from the said 78 flat owners will be agreed to be honoured by XYZ.

3. When all the above agreements are executed/registered, XYZ can step in to the shoes of ABC and start collecting the balance payment in their name and also complete the balance works for which the said payments will be collected.

Yes sir . Your Xyz builder provided all rights to the assignee .He can collect all payments.sale flat.or his laible for any wrong full act .Done by his workers.but don't pay the payment on the name of contractor . Your duty to assignee

This is a property purchased by you or the purchaser hence there can be no deed of assignment governing this issue.

The contractors under the builder cannot demand money or any further payments from the buyers because there is no agreement or contract between the contractors and the buyers directly.

The abc builders may have any type of agreement with the contractor, but it is the ultimate responsibility of the abc builder to complete the construction and deliver possession to the buyers as per the original sale agreement entered with the buyers in the initial stage.

The buyers can refuse to accept the xyz contractors and deny to make payments, the buyers cannot be forced to make any payment.

Consult a local lawyer who practices in this field alone for further issues.

Yes this allows the concerned person to collect payment/ cheque on his name.

Regards

The agreement what has been proposed in the latest post by you makes no sense in the legal aspect.

Why should the XYZ contractor wait for the payment to be made by the purchaser to the ABC builder and after that the ABC builder will transfer the same to XYZ.

The builder ABC is not doing any favor to XYZ contractor by giving this sub-contract hence it is not legally maintainable.

Moreover XYZ is undertaking to complete the construction on behalf of the builder, hence the builder should make the payment to the contractor whether he receives the payment from the purchaser or not.

Therefore the sub-contract agreement only can be entered between the builder and the contractor.

Deed of assignment is not the correct and proper legal step in this regard.

Once deed of assignment is issued it does not make sense in purchasers issuing cheques in favour of assignor as he would be transferring payment in favour of assignee

2) all payments should be in favour of Asignee only

3) declaration does protect interest of new entrant abd is binding on assignor

1. IT IS THE CONCERN OF ASSIGNOR TO GET THE WORK DONE.

2. THE ASSIGNOR MAKING ALL EFFORTS TO COMPLETE THE WORK WHETHER THROUGH FIRST ASSIGNEE OR PROPOSED SECOND ASSIGNEE, THERE WILL BE NO EFFECT, YOU CONTRACT WITH THE ASSIGNOR WILL REMAIN INTACT.

3. IF YOU WISH YOU CAN ASK ASSIGNOR TO GET THE SIGNATURES ALL THE ASIGNEE(S) ON THE CONYENANCE DOCUMENTS TO PROTECT YOUR INTEREST. ASSIGNEE(S) MAY SIGN BY THEMSELVES OR THROUGH THEIR POWER OF HOLDERS.

Declaration cum guarantee should be notarised

Don’t rely upon simple letter

Yes, the said declaration to be mentioned in a rectification deed in connection with the assignment deed validly registered will adequately protect the New Entrant since the terms are binding on the Assignor and the Assignee.

It must be notarized.

It will be prudent on your part to register the deed of Assignment and also the Rectification Deed in connection with the Deed of Assignment since the expenses for the said registration will be minimal.

There must be registered document binding for each other

Better get yourself protected from the future legal issues by taking advise from a local lawyer who is conversant with the laws involved after understanding your prevailing situation and scrutinising the relevant papers/documents.

Do not get into legal tangle by relying on mere online advises on such issues which needs to ascertain prevailing circumstances too.

Above change in ownership cannot be possible without authorization of RERA and until bank accepts.

Yes it needs to be notarized, getting the same done on just the letter head of the company will not do.

Regards