Hi, I'm planning to buy an apartment in Bangalore. This apartment is bought by an individual(Person A) from builder but not registered in his name. Now he is selling it. So it is a resale apartment. Broker says that this apartment will be registered under my name as the first owner, if I buy it. Broker says Person A has sale agreement and the process is - now myself & Person A should sign a MoU first, then come to a triparty agreement between myself, person A and the builder, then sale agreement between builder and person A will be cancelled and property will be registered under my name. Can someone please explain whether this process is correct and documents that need to look for ?. FYI - I'm planning to take home loan for buying this property.
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1) ask seller to obatin no due certifcate from builder
2) also NOC for sale of flat
3) it should be specified in MOU as to who would be liable to pay the transfer charges
4) get MOU , tripartite agreement vetted by local lawyer
5) check whether title of builder is clear and marketable
See it is correct procedure make a registered tri party agreement builder and previous buyer can do a registered cancellation agreement.
See you need to see Plan approvals and title document with builder and further the bank based on this triparty agreement can give you loan.
Dear Client,
IF you will buy directly from A than double stamp duty payable. Builder to A and A to you. So including A in sale deed not advisable neither he will be shown in sale deed.
Yeah! MOU can execute with A/tri partitite/cancellation all ohk. But payment should be made only at the time of registration of sale deed.
The broker has explained the process in lay man's terms, and it is legally also correct and also in the same order stated by him.
In addition to the above process, you will need to understand if the project is RERA registered, does the builder provide CC & OC for the project. Is the project approved by any nationalized bank. If the earlier agreement holder has a loan, then clearance or NOC from his bank would be needed once you enter into an MOU with the present buyer. Post which you can think of proceeding.
Dear Sir,
You must be very careful in this transaction and you share the documents in person so that you can get correct legal advise. They may create some problems thereafter. He must be consent witness for the sale deed etc.,
It's an illegal process the property can't be registered as first owner to you
Dear client
The builder is right as he already have sale agreement with the other Individual so he cannot sell the property to you without his consent or without cancellation of the previous sale agreement. Other wise A can sue the builder that how did he sold the property if the agreement is with him.
So you have to make a triparty agreement and then register flat in your name.
And you can apply for loan on basis of Agreement of sale.
Collect one set of sale agreement and sale deed from the seller
Apply for EC - which actually confirm s no transactions have happened in the past
Draft sale agreement after confirming from your lawyer that the titles are clear
If the seller has a bank loan ask for NOc from bank
Ask seller to Obtain NOC of sale
Tell ur lawyer to draft sale agreement.
Let the transaction between A and the builder get accomplished for you to acquire the property . The builder or A may rescind the terms of agreement on any grounds in future . Better to go for a clean sale.
Regards
G.Rajaganapathy
The process explained by the broker is the correct procedure to be followed in this regard.
You may enter into a tripartite agreement with the builder and the first buyer, based on which you may apply for bank loan otherwise the bank also may not sanction loan since there is an encumbrance in it by was of sale agreement in favor of another person.
