• Is builder buyer agreement is necessary to purchase a builder floor?

Mrs A purchased a plot from Ansal build well ltd. in Sushant Lok 2 Gurgaon in 1998. After that property was sold to Mr B in 2013. 

Now Mr. B is constructing 4 floors with stilt parking on this 180 gaj plot. I have done an agreement with Mr. B for the purchase of 3rd floor out of 4 floors.

I have to take the loan on this property. The bank is asking for builder buyer agreement. Whereas according to Mr B knowledge only allotment letter was provided to Mrs A and no builder buyer agreement was executed by Ansal build well ltd in 1998.

Mr B has written a letter to Ansal build well ltd for the copy of builder buyer agreement and if no agreement was executed than kindly issue a letter confirmation. But Ansal build well ltd.replied to contact Mrs A for the same and no other information provided by them.

 Now my Question is 
(1) Is the Builder Buyer Agreement is necessary for the Home Loan since the Mr. B has already sale deed of the above plot?
(2) How i can get the copy of Builder Buyer Agreement or the confirmation that no Builder Buyer Agreement was executed at that time from the Ansal build well ltd.?
Asked 3 years ago in Property Law
Religion: Hindu

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16 Answers

1) sale deed executed by builder in favour of Mr A is sufficent to confer clear and marketable title to the property

2) if only allotment letter was issued by builder then A did not have clear and marketable title to property

3) builder buyer agreement is necessary for Home loan

4) take search in sub registrar office as to whether any builder buyer agreement was executed

Ajay Sethi
Advocate, Mumbai
84383 Answers
5530 Consultations

5.0 on 5.0

Dear Sir,

Builder-buyer agreement

When a buyer books a flat by paying a token amount, he or she receives an allotment letter. After this, one has to enter into a tripartite agreement with the builder and the lending bank for the remaining amount. The builder-buyer agreement should be signed at this stage. Often, this agreement is biased in favour of the developer and it is in the buyer’s interest to read this document and understand the clauses.

For example, developers sometimes insert a clause that gives them the power to raise rates at the time of possession. The clause basically mentions that ‘due to unforeseen market conditions’ (such as rise in the prices of raw materials) and ‘factors out of their control’ or ‘increase in the size of apartment’, the developer can increase the rate by a certain amount. The same is charged through a demand letter at the time of possession. Recently, a similar case came up in the Noida Extension region, where a well-known builder sent letters to his allottees seeking more money for completed flats.

Kishan Dutt Kalaskar
Advocate, Bangalore
6010 Answers
321 Consultations

4.8 on 5.0

Firstly, the property was possessed by Mr A through the builder on the basis of the sale deed.

Secondly, and sale deed is the purest form of any property document with regard to originality of the transaction.

Thirdly, there are some banks which ask for this otherwise only sale deed is sufficient to give the loan.

Fourthly, try to look forward for other banks also as the document is not really feasible for any builder to issue after so many years.

Fifthly, I would also ask you to go for the concerned authority to see if there 4 floor making is been allowed or not, otherwise may be in problem in future.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Your builder buyer agreement will be with Mr. B and not Ansal as he is owner of the said land.

And Ansal sold the plot to Mrs. A, which transfers the ownership to her, pursuant to which Ansal has nothing to do with the property.

Anshul Chowdhary
Advocate, New Delhi
19 Answers

Not rated

1. Bank cannot insist for the original agreement between Ansal build well ltd and A

2. B is buying property from A by taking a loan

3. So bank can only require and retain the original agreement between A and B as security

4. The agreement between A and Ansal build well ltd was for entire plot

5. The plot is not being bought by you and bank is not providing you any loan for buying the plot

6. Bank is providing loan for only the 3rd floor. So only the document recording sale of 3rd floor can be asked by the bank

Yusuf Rampurawala
Advocate, Mumbai
6500 Answers
55 Consultations

5.0 on 5.0

Sir since the builder and owner of the property in your case Mr. B so the builder buyer agreement shall be made and registered between you and mr. B.

The previous titles are clear through sale deeds and Mr. B has clear title as at this point of time there was only a plot land then how come a previous builder and buyer agreement can exist.

I think you should reconfirm with your bank the bank for loan is asking for registered agreement between you and Mr B wherein Mr. b is agreeing to sale 3 floor to you. That will be your builder buyer agreement. Since.ylu have no interest in land the bank shall give loan on basis of registered agreement between you and.Mr. B

Shubham Jhajharia
Advocate, Ahmedabad
25518 Answers
148 Consultations

5.0 on 5.0

1) first contact original purchaser is Mr A

2) obtain in writing from A that no builder buyer agreement was executed and only allotment letter was issued

3) builder will not oblige you in giving nay confirmation letter as there is no profits of contract between you and builder

Ajay Sethi
Advocate, Mumbai
84383 Answers
5530 Consultations

5.0 on 5.0

hi,the builder buyer agreement between you and B is required for obtaining the home loan....Further, you can provide a copy of sale deed in favour of Mr.B ....You can contact Ansal build well and ask for ,record of ownership details of Mr.A. to obtain bank loan...Further bank officials are not being relevant in asking the BBA with Mr.A...You can contact me in person for further legal assistance at my office in Gurgaon

Hemant Chaudhary
Advocate, Gurgaon
4615 Answers
54 Consultations

4.9 on 5.0

Bank is not bonefide in asking the Buildwr buyer agreement between A and anshal as this was only purchase of land and if there is no development of property by them it is not relevant there is only sell of land land is developed by B

Further you give a letter to A asking the agreement if executed he is not lawfully bound to give you reply.it will be there wish to

Further check with the aub registrar office if any such agreement was registered.

See if there has been any agreement between A ans Ansal for development Mr. b won't be in picture there was sale between ansal and mr A and later between A and Mr. b.

So there is no relevance of old agreement if any as sale deed is executed possession in name of B so your and Mr. b agreement relevant contact bank and submit the old sale deed copies and your agreement further if bank is adment contact different bank.

Shubham Jhajharia
Advocate, Ahmedabad
25518 Answers
148 Consultations

5.0 on 5.0

1. Both Ansal build well and Mrs A will be having the agreement. So you can approach either of them

2. The agreement must be a registered document. So it's already in public domain. So it's not understood why Ansal build well has a problem in providing copy

3. You must visit personally to the office of Ansal build well and tell them the situation

4. You can also check the title document of B. In that there will be a description of title history. So using that data you can apply to sub registrar office to provide you a certified copy

5. Even if that's not possible then you can approach a registration search clerk. Give him the details of the parties and the property. The agent can help get the document from registration department using names of parties and property description

6. However if the agreement between Ansal build well and A was not registered, then you will have to request Ansal build well to confirm on their letterhead that they had sold the property to A.

Yusuf Rampurawala
Advocate, Mumbai
6500 Answers
55 Consultations

5.0 on 5.0

Hello,

Not you but Mr. A can file a case in the consumer forum to obtain the copy of BBA.

Also if he is not ready to do the same then obtain a POA from him and then file a suit.

Regards

Anilesh Tewari
Advocate, New Delhi
17870 Answers
338 Consultations

5.0 on 5.0

Also you may try and take loan from some other bank, might be a case that other bank is ready to give loan on the basis of sale deed only.

Regards

Anilesh Tewari
Advocate, New Delhi
17870 Answers
338 Consultations

5.0 on 5.0

1. The builder buyer agreement is an essential document for considering grant of loan.

If B has bought the vacant plot, why should he contact Ansal builder for this when they have not built the four storey building which B is constructing it now?

2. If Ansal build well company has not built the structure but sold only the vacant plot, then it is the responsibility of the subsequent purchaser who developed the plot into four storey flats/apartments.

You should catch hold of B for all such formalities.

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

You cannot write to Ansal build well company directly.

Your vendor should approach his own vendor who shall obtain the confirmation letter from the builder who sold this proerty to her.

Since there was no building constructed, there is no question of any BBA hence the same can be confirmed by Mrs. A.

However you can put pressure on your seller about this.

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

No, only seller and buyer agreement is necessary.

Jaswant Singh
Advocate, Gurugram
910 Answers
2 Consultations

4.8 on 5.0

(1) Is the Builder Buyer Agreement is necessary for the Home Loan since the Mr. B has already sale deed of the above plot?

Answer: if the property of Mr. B are all in order and there are no discrepancies in is title then you have nothing to worry. But you should approach the Registrar if any builder agreement was registered or no;

(2) How i can get the copy of Builder Buyer Agreement or the confirmation that no Builder Buyer Agreement was executed at that time from the Ansal build well ltd.?

Answer: This is my response:

a. approach the builder and give a written letter to request the builder agreement, wait for him to reply;

b. If he does not give the same to you, you can file an RTI (can be done online);

c. If you don't get response file a request to the Registrar and try to retrieve it from there;

d. It is Mrs. A's responsibility to ask for the builder agreement or a xerox copy of the same, otherwise her title is also faulty;

e. Convince Mrs.A and Mr. B to join you in sending a legal notice to the builder;

f. If there is no builder agreement, then file a suit for specific performance;

g. If Mr. B has a the perfect title to the property then nothing to worry, but still the chain of documents should in place for ready reference to subsequent buyers.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

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