Respected Sir/Ma'am, The sale agreement between the second owner and the third owner has been done. But, the second owner had not done sale deed with the first owner. The builder has transferred share certificate in the second owner's name, which actually has not been disbursed yet to any of the society members. But, we the third owners, went through these articles and realize that we should execute the sale deed with the second owner. Please advise how can we secure a clear saleable title in our name at this stage?
1. It appears that the first owner made some agreement with the builder first.
2. if that is so then it is to be seen whether same has been cancelled or not.
3. if not then in the present deed the first owner will have to be added as a party.
4. The first owner would not be required only if his sale agreement has been cancelled or he had made a sale deed registered in the name of the second owner.
5. otherwise first owner can not be ignored.
You have to make a tri party agreement if no sale deed is there with second owner the 1st owner has to be the party to the agreement as second owner title is not clear. Only share share certificate doesn't give a clear and marketable title. The first owner has to be the party and second owner needs to be confirming party in the transaction.
Firstly, Sir, I would advice you to inquire about the property in question little bit.
Secondly, you can go to the registrar’s office, and check the property chain since initial existing of the property.
Thirdly, if there is not incumberrance in it then you may go ahead and execute the sale deed for sure.
Fourthly, once you make an inquiry then you will get to know about any existing loan or dispute with regard to the same or not.
As there may be the situation that the person is the legal owner but do not have sale deed.
Good Luck...!
1) You have to check second owner must have done POA and transferred all legal rights on his name.
2) After that only he must have received the share certificate. Or you can check how share certificate has been transferred on his name.
3) You can mentioned mutation history in your sale deed and all documents information that how second owner got property rights on his name and he is sole owner and responsible for this sale deed.
Original investor must have sold his flat prior to execution of sale deed
2) in such case tripartite agreement is executed between builder original purchaser and buyer
3) if no such document executed and builder has transferred flat in favour of second owner you don’t have clear and marketable title to the property
4) necessary to peruse all documents cited by you to advice
Thank you all for the prompt responses. Just want to clarify that all previous "Sale agreements" are in place in the chain of documents: - Between builder and the first owner, yes - Between the first and the second owners, yes - Between the second owners (Father, son, son's wife) and the third owner (me), MOU has been signed, pre-requisites of sale agreement have been completed, viz. society NOC availed and stamp duty-registration charges paid to the registrar. Only signing of the sale agreement is scheduled for soon My question now is: Can any clause be added in the sale agreement between the second owners and the third owner to mitigate all ownership risks?
Indemnity clause can be incorporated to indemnify you in case any claims are made by third party for the flat
You have already executed sale deed with second owner in this matter. You can now at the most execute an affidavit and indemnity bond from him. If the share certificate is in his name then there is less risk. But you should always buy Property with clear title
This is my response to you:
1. If the documents of first owner and second owner are signed, stamp duty correctly paid, registration done properly, then the title was clear of all the owners;
2. Now to transfer the same to you, you need to execute, pay the stamp duty and only after registration you will get a clear title;
3. MOU and NOC have no legal value of transfer and therefore a sale deed needs to be done soon;
4. Only a registered Sale Deed implies transfer of perfect title;
5. Sign an indemnity bond to mitigate all risks on first and second owner or even the builder.
Sir the first owner can sign as confirming party to mitigate all the risk of title since the title of second owner is not registered only agreement is there you need the first party to sign the sale deed.
1) Need to review the sale agreement what type of you had entered clauses.
If those clauses are sufficient than no need to enter new clauses.
Yes, such a clause definitely has to be inserted to safeguard your interests and mitigate all risks.
Without a title document the vendor will not have clear and marketable title to sell the proeprty, hence it is pertinent that the seller should have the registered title documents in his name in order to sell the property to you.
If he do not possess then ask him to procure one in his name after which he will be eligible or entitled to sell the property, otherwise the sale shall be invalid and illegal.
you will be in trouble if you purchase the proeprty without the vital documents for purchase of property.
My question now is:
Can any clause be added in the sale agreement between the second owners and the third owner to mitigate all ownership risks?
Even If you add any clause for the present in the sale deed, it will not come to your rescue if the vendor is not having a clear and marketable title to sell the property.
Why are you hurrying to purchase the property which is not in order or genuine.
Absence of title document will not entitle the seller to execute the registration of the sale deed in your favor, the registrar will not accept the sale deed document executed by the seller if he is not having a valid title to sell the property.
Dont do any blunder mistake now and repent at a alter stage without knowing how to rectify this mistake.