• Absolute sale deed in case of transfer of apartment

I have entered into sale agreement with builder for amount X. I then sold my flat as an assignment agreement to a new buyer for amount Y. The buyer is now registering the property with builder. However in the absolute sale deed the builder is not quoting the amount Y that new buyer paid to me and he is also not making me as confirming party. The builder in absolute sale deed is just including amount X and my name as one of the paragraph to say I entered into agreement with new buyer. Is this mandatory as the bank providing loan to new buyer is refusing to release the money as they said sale deed is not correct?
IS CONFIRMING PARTY AND HAVING THE AMOUNT Y AGREED IN ASSIGNMENT AGREEMENT MANDATORY IN ABSOLUTE SALE DEED
Asked 4 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

13 Answers

bank is correct

2) your name should be included in agreement as confirming party . recitals should mentioned details of agreement of sale executed by builder in your favour

3)it is necessary to peruse draft sale deed drafted by builder to advice further

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

If Sale deed will include, Y amount i.e. Sale by B to X and X to Y than additional stamp duty will levy for transfer of property from X to Y which is futile and only increase govt. revenue.

What is the need to mention Y amount, it is certainly more than X amount which received by you.

And if sale deed will include Y amount than it will show profit in builder statement, which actual accrue to u.

Bank will required valid transfer deed document by X to Y, so Sale deed better suppose to be direct to X, no need to include Y otherwise bank will object for want to duly registered transfer deed.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

The builder will make sale deed of the amount of sale he did as you have transferred unregistered property which is worth same as you had.

In case you had registered the property then only the arrangement would have been possible as builder is not the recipient of the entire sale amount.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Your name should be included in the confirming party also the builder shall quote on X amount as the rest.of amount is profit.to you.

So.for that proper clause has to be drafted.saying that you are confirming party reference to your agreement should be there along with the amount.of sale, amount to builder and amount.to you.should be specifically quoted

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Yes it is. You need to be a confirming party.

Prashant Nayak
Advocate, Mumbai
27247 Answers
88 Consultations

4.4 on 5.0

The present buyer must handover the Deed of Assignment that is executed between you, the builder and himself/buyer. In this the Amount Y would have been mentioned and paid. This would be sufficient for the bank to release the payment in favour of the builder.

Sale deed will only have the guideline value mentioned in it, as do other similar sale deeds executed by the same builder.

If the deed of assignment has been executed, then your signature as Confirming Party is not needed. Having Amount Y mentioned in Deed of Assignment is mandatory, but not in the Absolute sale deed.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Yes the said is mandatory in the absolute sale deed, failing which the document will lose its legal sanctity

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1) Yes there should be two party buyer and seller, here your role is like agent, who doea not have legal rights on the property nor possession.

2) Nor builder had given you POA to sell the flat, if you want the bank should issue cheque on your name than first get done POA between you and Builder saying that you have full rights to sell or keep or distribute etc of that particular flat.

3) than the transaction between you and new buyer will take place. Otherwise not as if now the transaction willl happen between builder and new buyer, than bank will pay money to builder or you take money from builder for this transaction and for excess amount pay tax to builder ask him to enter Y amount on sale deed, and for diferrence amount between X and Y what ever comes as Z amount on that you give Income tax and taxes to builder check this work with it.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Since there is no agreement between Y and builder banks will refuse to release money as banks need agreement between builder and also sale deed to know what amount Y has availed loan and how much is paid through cash for valuation purposes. So it will be mandatory to mention in sale deed the agreement was entered by Y with you for a specified amount.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

1. In the sale deed unless you are made as conforming party and the consideration amount paid to you is mentioned the deed is not proper nor clear title would pass on to the new purchaser.

2. So if defect as it appears remains the purchaser may sue you for corrections and hence it is advisable that you force the builder to correct the sale deed.

3. Since you are receiving money it is your job to ensure that the deed is properly drafted. The purchaser can not force your builder to draft the deed as per your wishes

4. The builder is not ding the rights thing and hence he must be made to correct the course.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. IF an agreement of any sort was made between the First buyer and the Builder, THEN the true contents of the same has to be properly recited in the Agreement that is being made between the Second Buyer and the Builder.

2. The First & the Second buyers and the Builder, would have to jointly execute the Agreement, ELSE the First buyer has a chance to create a dispute in future, thus effecting the future mortgages as well.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

The contents of the sale agreement are to conform to the agreed conditions and consideration amount.

If not then the sale agreement may not be considered to be valid for the purpose of loan.

You may get it drafted by your lawyer if the builder is reluctant about it.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1. The procedure is that the builder will issue allotment order to you on receipt of the full payment from you.

2. You shall then enter in to agreement with your buyer for selling the said flat against payment of consideration accepted by both of you.

3.Thereafter on your application along with additional fee (as prescribed in the brochure to be charged for transferring the allotment to the third person), the builder will transfer the allotment from you to your buyer.

4. The builder then shall register the sale deed in favour of the third party buyer and shall mention the amount he has received from you.

5. The builder shall also mention the fact of transfer of allotment of the flat from you to the third party buyer.

6. The builder can not mention the amount you are collecting from him since it has now become direct sale from the builder to the third party by transferring the allotment.

7. If you register the fla first in your name and then further register the sale deed executed by you and your buyer, then you can mention the amount you are collecting from your buyer towards the sale consideration and in this case you shall have to pay stamp duty and registration fees twice.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer