Hi, I am in Bangalore interested to buy an apartment in re-sale. However the apartment is still under construction and is NOT registered to the seller. The seller only has completed an agreement-to-sale (AToS) with the builder and completed the full payment and taken home loan on the property. Now, the seller wants to sell the property. Will only an MOU be sufficient in this case or a fresh AToS needs to be executed between the builder and us (Purchaser)? Is it required for the MOU to be registered, and would it be a valid document? Thank you in advance.
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Tripartite agreement has to be executed between the seller you and builder for sale of apartment to you
2) obtain no due certificate from builder
3) further it should be specified that transfer charges would be paid by paid by seller
4) mere MOU is not sufficient
Dear Client,
Without registered sale deed, ownership dose not trasfer. Ever seller has no authority to sell the apartment. Sale deed will execute between you and builder.
AToS contains the terms and conditions agreed upon between the parties, and binds them to process sale and purchase of property but not transfer of ownership.
See there can be triparty agreement MOU between builder you and seller wherein the builder directly trnasfer in your name and the seller shall be the confirming party. Yes thr MOU/ triparty agreement should be registered and it is a valid legal document.
You should buy only from the land owner or builder.
An unregistered agreement of sale is what probably the person who booked the flat has proof of him offering to buy the flat from the landowner or builder.
So , if there is a Tripartite agreement of sale between you, landowner/builder and the person who bought the land from the builder then it will constitute a valid contract.
Always better execute fresh AToS and will serve the purpose without any issues
MOU would not confer any title on you
you will have to enter into a registered agreement for sale with the builder
the seller has to become a confirming party in such agreement
the builder will demand certain transfer charges for the above
you have to pay sale price to the seller and transfer fee to builder under above agreement
1) You better registered the Agreement to Sale with registrar between you and Builder so it will be registered documents and on this base you can sell the flat and inform the builder your intention of selling the flat so he shouldn't make any problem later on to your buyer because a sale deed will happen between Buyer and Builder later on.
It is essential for you to enter into an MOU with the present SELLER post which a Deed of Assignment between you, the present Agreement holder and the builder will be executed so as to facilitate smooth transistion of the transfer process from him to you. Once this is done, the bank will cancel the loan in his favour and raise a fresh loan in your name after signing the Deed of Assignment is completed and a new Agreement to Sell is executed between you and the builder.
MOU need not be registered but the correct stamp duty must be paid for it to be legally binding.
Dear Sir,
If no sale deed executed then get sale deed from the builder and the signature of the vendor as consenting witness or
vice versa. 
A. Seller will have to be executed Assignement Deed in favour of the buyer and he must obtain No Objection Certificate from the Builder as per terms of Sale Agreement subject to deduction of Assignment Charges. For more clarity, you need to verify the Sale Agreement for Assignment clause (Transfer of right). Generall Assignment of Selling right is not permissible unless obtain permission from the builder subject to deduction of penalty amount.
B. You need write a letter to get clarity from the builder as to whether the Seller is entitled to assignment of his right which is conferred under the Sale Agreement and any dues pending with him towards assignment charges as per the terms of the Agreement? whether any objection is there with builder side or not?
C. Deed of Assignment need not be required registration. However, sufficient stamp duty must be paid.
D. Subsequently, Buyer should enter into fresh Agreement to Sell with the builder subject to make payment of consideration amount to the Assignor or the builder as per the mutal deal.
If the seller has an registered sale agreement on his name, then the same has to be cancelled.
Also you may have to enter into a tripartite agreement with the seller and the builder in this regard.
In that the registered sale agreement in the name of the seller will be cancelled and the builder can even directly execute a registered sale deed in your name if the property is constructed and ready to occupy or you may enter into a registed sale agreement.
MOUs will not be sufficient for the transactions in respect of the immovable properties.
