• Buying property - MoU wordings

Hi experts,
 Iam buying property from an investor in one of the new apartments of Prestige builders, Bangalore. The investor has signed a sales agreement with the builder and land owner but not registered the property yet since he is only interested in selling. I'll get into a tripartite assignment agreement with the seller and builder.
 However before that myself and the investor will get into a Memorandum of Understanding (MoU). Can someone please share a draft of MoU with me.

Regards
Vikas
Asked 6 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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10 Answers

You should contact a local lawyer for drafting MOU 

 

2) there is no standard format

 

3) it depends upon facts of each case 

Ajay Sethi
Advocate, Mumbai
99796 Answers
8147 Consultations

See there are no ready made draft available you can engage service of advocate to draft a MOU for you and seller as per your terms and condition.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1. There is no harm otherwise to buy a property from a seller who has only sale agreement with the actual owner.

2. In that event a tripartite agreement is to made and all these parties must join in sale deed as well.

3. This documents must be drafted by a skilled advocate and you must not rely uon any ready model draft.

4. So meet an advocate , show him all papers and get an agreement drafted. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

We can't share draft in this consultancy.  You need to take a consultation differently for the draft through kaanoon

Prashant Nayak
Advocate, Mumbai
34529 Answers
249 Consultations

There is no draft as such.

it has to be drafted as per the needs and requirements of the client.

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

Pls contact local property lawyer. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Dear Sir,

An MOU is a formal alternative to a gentlemen’s agreement.

Clearly examine the requirements when drafting a Memorandum Of Understanding (MOU)
1. State the overall intent of the MOU: Many MOUs begin with a brief description of the overall intent of the parties. MOUs should have clearly stated clauses that accurately reflect what the parties are intending to do to ensure there are no ulterior motives, as they have no place in effective partnerships.
2. The Parties: The next clause in an MOU describes the parties to the agreement. These are the personalities or organizations that’ll be involved in the agreement, and is not restrictive to a certain number of persons/organizations as long as all parties agree on the overall intent of the MOU.

3. The Period: In an MOU, it is important to specify a time period for the partnership with start and end dates. As MOU’s are not eternal and everlasting.

4. Assignments/Responsibilities: This important section of the MOU describes the duties and responsibilities of each party. It is generally more effective to describe each organization’s responsibilities separately, beginning with the items that are an organization’s sole responsibility. List each group’s sole responsibilities, followed by a description of shared responsibilities, if any. In many cases, this section of the agreement will be the most detailed and lengthy. Clarifying responsibilities is the number one purpose of a written agreement.

5. Disclaimers: While drafting, it is important that MOUs will contain one or more disclaimers, including one indicating that employees of Organization A are not to be considered employees, borrowed or otherwise, of Organization B and vice versa. It may also be worthwhile to disclaim what the partnership is not intended to do, guarantee, or create.

6. Financial Arrangements: Where financial implications are involved in the overall intent of an MOU, These should be spelled out in detail including which entity will pay for each item and when payment is due and to whom.

7. Risk Sharing: Another critical element of an MOU is a description of who will bear the risk of a mishap. What if something goes wrong? What if the partnership’s activities result in injury, death or a financial loss? An important tenet of risk management is that an organization should never assume responsibility for something over which it does not have control. A formal MOU may include a provisional clause, promising that Organization A will pay for losses suffered by or caused by Organization B. Ideally, indemnification provisions should be mutual in that each party will be responsible for its own negligent acts or omissions. In considering financial implications, make certain your partner is not only willing but also able to pay for losses it causes.

8. Signatures: A representative from each partner with authority to bind their organizations contractually should sign the MOU. Each partner should retain a copy of the signed agreement.

Realize that a MOU is a contract and, as such, should be reviewed by your attorney before you sign the document to make certain that your values are protected and that you aren’t giving away yourself in an effort to move forward with the partnership.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

Provide detail.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

The tripartite agreement itself will serve as a MOU, however if you still insist on a separate MOU between you and the seller, you may first ascertain the reasons and substances that you both would agree upon and can engage the services of an advocate on his terms to draft a proper MOU between you both.

 

T Kalaiselvan
Advocate, Vellore
89996 Answers
2496 Consultations

1. ON the basis of agreement to sell alone a person cannot sell the property. An agreement to sell does not create any title in favour of the prospective buyer.

2. We do not share any draft. Engage a lawyer from the portal and get a specific draft to cater to your situation drafted from a lawyer.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

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