Sir, I wanted to buy a flat from the land owners allocation from a complex that has been developed by a builder under a joint development agreement with the land owners.the development agreement talks of 45% of proposed construction area in the project to be allocated to land owners and that after sanction of building plan the parties shall demarcate their respective allocations and such demarcation shall be recorded in a separate instrument.For the demarcation they showed me one company letter pad where the land owners and developers have signed and agreed on respective allocation of flats.my first question is - is such an allocation on company letter pad valid? the flat I want to buy falls on land owners allocation.but the flat is being sold by developer by procuring one NOC from the respective landowner(whos allocation it falls into; there are three land owners).also there will be another tri party agreement between me land owner and developer where the respective landowner idemnifies me and has a separate cancellation clause(because the money ultimately goes to land owner).i.e. there will br two agreements..one between me and developer by virtue of an NOC from land owner and another between me land owner and developer . a local lawyer i consulted told me that a PoA from the land owners to the developers is must for the developers to sell a flat from the land owner allocation but developer is refusing this I unable to understand what to do.please help.
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Dear Client,
is such an allocation on company letter pad valid? ---- Such agreement has no sanctity neither can be performed through court if any dispute arise, unless not duly registered.
POA (notorized at least )will required otherwise land owner can create dispute any time or sale deed must registered land owner, as seller.
Supplementary sharing agreement has to be executed between landowner and builder
2) sharing agreement should be duly stamped and registered
3) mere letter on company letter head is not sufficient
4) POA is necessary for sake of land owner share by builder
1. insist for a supplementary agreement in which the builder and owners agree on their respective flats in the new building
2. why 2 agreements? just one tri party agreement is sufficient
3. under this tri party agreement, the land owner will agree that the flat which was allotted to him can be sold by the builder to you. So no power of attorney will be needed as the owner himself will become a party in the tri party agreement
4. also if above tri party agreement is executed then even the flat distribution agreement may not be required. But since you are saying that there are 3 owners, its better that there is a separate supplementary agreement which will describe the flats of each party i.e. the builder and 3 owners
5. another option can be that in the tri party agreement, the other 2 owners can become confirming parties. so the supplementary agreement can be dispensed with, that is, wont be required, since all owners will be agreeing in the tri party agreement itself
Dear Sir,
To be more safe get the sale deed executed either of the party and then the other party may be asked to sign the sale deed as consenting party.
1) you can go with both agreements all Owners and Developer should transfer the flats rights on your name. by the way of sale deed for consideration.
1. This procedure is highly unusual since such allocations are made before hand and mentioned in the development agreement itself viz. ground and first floor of the flats constructed from the front side will be allocated to the land owner etc.
2. Making the allocation agreement on letter head and not by executing an agreement on stamp paper appears to be dicey..
3. If the flats falls under land owner's allocation then why is he not registering the sale deed himself? The steps mentioned appear to be unusual.
4. Of course POA in favour of the developer executed by the land owner is a must to authorise the developer to sell the flats falling in the allocation of the land owner and in the instant case, the land owner can himself sell the flat falling in his allocation.
my first question is - is such an allocation on company letter pad valid?
Yes, it is an understanding between the landowner and the builder.
I unable to understand what to do.please help.
The POA is the instrument/document which enables the builder to sell the property on behalf of the property owner, i.e., .. the land owner.
Therefore your lawyer is right and the builder is wrong.
You can issue notice to the builder in this regard and may ask him to quote that under which law he is refusing?
