• Buying a property from agreement holder

I am planning to buy a property. The original owner is a NRI, The local person say X has a sale agreement with the NRI. Now I am dealing with X and he is requesting 25% of sale amount as advance and he is telling that he will enter into an agreement with me.
Is is possible to have agreement fo sale from agreement holder.
Asked 4 years ago in Property Law
Religion: Hindu

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21 Answers

1) sale agreement between X and NRI should have been duly stamped and registered

2) then only can X sell property to you

3) to confer title to property registered sale deed is necessary

Ajay Sethi
Advocate, Mumbai
87916 Answers
6207 Consultations

5.0 on 5.0

hello,

he should have registered power of attorney from the owner NRI. if he has that and lets you talk to the owner, which you can verify as the POA must have been notarized in India, then the property is safe to buy in India.

regards

Rahul Mishra
Advocate, Lucknow
13757 Answers
65 Consultations

5.0 on 5.0

What sort of agreement holder is he. Is he a attorney holder(SPA or GPOA) of the NRI. Their is no sort of agreement holder in selling of property. He should be a registered authorised person for the dealing via a power of attorney. Don’t pay him any sum till the time he produces proper documents. He is not capable of doing a bayana agreement(part agreement)

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

Firstly, ask him to show the original property documents in favour of NRI and sale agreement with X. Go through the original property documents and sale agreement and obtain photo copy of the same. Now, see who is the owner of the property and where and when the sale agreement has been executed. Whether the sale agreement empowered him to execute further sale agreement. By doing this you would get the answer.

Secondly, you may ask him for direct sale agreement with the NRI or a power of attorney in favour of X by NRI for sale of the property and for making the payment of advance and future amount to X. Who will execute the sale deed?

Dalip Singh
Advocate, New Delhi
1039 Answers
36 Consultations

5.0 on 5.0

Original owner of the property’ and sale deed holder should transfer the property to your name. Even for sale of agreements original property holder should sign.

My advice would be do not pay 25%to X since he is not the original owner. Secondly without verifying original document don’t move forward.

Sudhindra Bhat
Advocate, Bangalore
51 Answers

Not rated

Sale agreement not valid but POA that also registered, fake call , don`t go for it.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

This is my response to you:

1. This is not possible;

2. Ask the NRI person to show his records;

3. Ask the X person to showcase his property records;

4. Engage a local lawyer show him these papers then only go ahead with the sale;

5. Do not give 25% without verifying details;

6. The only way is X has valid registered power of attorney to sell the property;

7. Otherwise do no jump into purchasing the property without verifying every small intricacies.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Registered Agreement for sale operates as sale deed if full payment made and possession delivered to the purchaser

2) on basis of agreement mutation of property should have been done in favour of Y

3) if X cannot come to India he can execute specific power of attorney in favour of family member duly attested before Indian consulate

Ajay Sethi
Advocate, Mumbai
87916 Answers
6207 Consultations

5.0 on 5.0

hello,

the sale agreement between x and y can exist only if x had come to India during that period. otherwise, an agreement cannot have been done.

the NRI X has to sign and register a register a POA in the name of Y and then y can sell you the property.

if the agreement to sell exists then the contents of the agreement are relevant.

if X has concluded an agreement to sell to Y, how can he sell the land to you??

regards

Rahul Mishra
Advocate, Lucknow
13757 Answers
65 Consultations

5.0 on 5.0

Through Sale agreement, no right assign/authorize on Y to sell property of X, Only through registered POA, X can sell property of Y otherwise not valid sale and Y can get it cancelled any time.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

good in the above case Y is the real owner and you are seen all the doccuments and verified. Through sale agreement with Y you may have a sale agreement through Y. But for registration X need to be present, since Y is not holding the titile of the proprty.

Sudhindra Bhat
Advocate, Bangalore
51 Answers

Not rated

An SPA (sale purchase agreement) serves as a basis for a transaction to take place, providing a framework for how the transaction will proceed, what is included in the transaction and, if necessary, what is excluded from the sale. It allows the buyer and seller of a particular asset to negotiate, and ultimately agree upon, a proper price. While not required for every transaction, SPAs are often used for large single purchases or frequent purchases across a specified amount of time.

Not only do SPAs dictate the terms of the sale, but they also contain detailed information about the buyer and the seller. They serve as a record of any deposits made as negotiations move forward, any portions of the agreement that have already been met or transactions that have already been completed, as well as an official record of when the final sale is to take place.

This is what sale agreement is. You should ask him to get a power of attorney made through the Indian embassy(wherever he resides)in favour of the person whom he wants to appoint in his capacity.

NRI sell their properties through a registered power of attorney made via Indian Embassy

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

Is there a clause in the registered sale agreement that Y can enter into sale agreement and if yes, go ahead.

Dalip Singh
Advocate, New Delhi
1039 Answers
36 Consultations

5.0 on 5.0

1. Since 'Y' is only the sale agreement holder and is not the property owner, as of now, 'X', being the owner of the property can only execute the agreement of sale with you and 'Y' has to be a consenting witness.

2. The previous agreement of sale executed by 'X' in favour of 'Y' has to be cancelled by executing a registered cancellation deed in the jurisdictional Sub Registrar's Office.

3. Without coming to India, 'X' can execute a Power of Attorney to any of his family member, to represent 'X' to sign and execute the sale deed in your favour.

Shashidhar S. Sastry
Advocate, Bangalore
4167 Answers
258 Consultations

5.0 on 5.0

In your case, Y can only be the consenting witness if you decide to enter into a sale agreement for the purchase of the said property. it is confirmed that the sale agreement between X and Y is a registered one.

Now if the sale agreement between X and Y permits Y to assign his rights to a third party only then can Y enter into a assignment deed with you, however Y cannot represent X as he has not given him the GPA to sign the assignment deed on his behalf.

A assignment deed must be signed between X, Y and you, and if X cannot be present then his Power of Attorney holder must sign on his behalf. He has to execute a GPA in favour of either Y or any other person to represent him. In my opinion any other person other than Y can be nominated on behalf of X to sign the assignment deed.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Y has no right to execute assignment or sale agreement, sale agreement does not confer any rights over the said property. X has to execute sale agreement with you, he can give special power of attorney to present documents before sub registrar for the same. All the best.

C. V. Jadhav
Advocate, Bangalore
545 Answers
18 Consultations

4.7 on 5.0

Having a sale agreement does not make one the owner of the property, hence X who just has a sale agreement in his favour has no competence to sell the property unless there is a Power of Attorney executed in his favour by the true owner.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

1. In the first query you have shown Mr.X and NRI as two different persons whereas in the subsequent query they are shown as one.

2. You must understand the difference between the sale agreement and sale deed. The former is just an agreement to sell i.e to execute the sale deed between the seller and buyer whereas the latter actually results in sale and transfer of title to the buyer from seller.

3. If Y has only an agreement to sell in his favour then he has no competence to sell the property to you.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

It appears that the proposal given by the agreement holder is illegal and unlawful.

You would get trapped by this deal and may have to lose your huge amount.

Better consult a local advocate on this as well as for his opinion on the property and then move ahead through the original owner alone.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

The sale through Y is not legally valid.

The sale agreement between X and Y should be cancelled.

After that X only has to execute a registered sale deed to you either by himself or through a power agent on the basis of a registered power of attorney deed.

You may better consult a local advocate before finalising the deal.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

This is my response to you:

1. If X has to give the powers for sale then he can execute a POA abroad, get it notarized and send it to India;

2. Also an NOC attached stating he has no claim on the property in the future or an indemnity bond;

3. You can then engage with Y for all the works and procedures.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

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