• Sale agreement problem while purchasing flat from landowner

I am about to purchase a flat in a completed project (completed 2 years ago) from the landowners share of flats,directly from the landowner. 
The project is a joint development between the builder and the landowner and they have registered the Joint Development Agreement(JDA). 

The JDA does not have the list of flats and allotment mentioned in it but only undivided share of land in percentage is mentioned. 
The list of flats and allotment of flats is mentioned in another supplementary agreement which is unregistered. 
I was given a draft copy of the sale agreement by the landowner in which the landowner is Vendor and builder is consenting party.
 
I showed this to my lawyer,who said that the builders name should be mentioned in the first/front page as part of the Vendor as the supplementary agreement is not registered.
The builders name is mentioned in the middle pages as consenting party and also states that they handover posession of the flat to the purchasers(me) at the direction of the Vendor. 

Now when I contacted the landowner and mentioned this to him,his legal expert is saying that it does not matter if the builder's name is not on the first page as part of the Vendor.
He also mentioned that they have used this same format to sell other flats of the landowner and refused to change it. 
But my lawyer is saying that it is important so that I dont face problems in future in case if I have to sell the flat. 
My lawyer says that I can go ahead and purchase the flat at my own risk. 
Will it be a problem if I go ahead?
Asked 6 years ago in Property Law
Religion: Hindu

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20 Answers

The supplementary agreement between landowner and byilder for sharing of flat has to be registered to avoid legal complications in future

2) unregistered supplementary agreement is inadmissible in evidence

3) builder name should be in the first page

Ajay Sethi
Advocate, Mumbai
94511 Answers
7484 Consultations

5.0 on 5.0

Hello,

You have been advised rightly by your lawyer.

You may definitely go head and purchase the same on your own risk.

You might face problem later in selling the flat.

I would advise you to follow the advise of your lawyer and invest your hard earned money in some other project.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

Your Lawyer is correct ,

Builders name should be mentioned in the front page as part of the Vendor as the supplementary agreement is not registered.

Ravi Kumar Singh
Advocate, Patna
52 Answers
2 Consultations

4.0 on 5.0

The biggest difficulty with this is that the supplementary agreement in which the flat sharing arrangement is described is unregistered.

The supplementary agreement ought to have been registered; however, since the same is unregistered, the builders name must be on the first page.

The problem that you might face in future is that in case there is a disputein between the landowner and the builder w.r.t. sharing of flats, your interest will be jeopardised.

Vibhanshu Srivastava
Advocate, Lucknow
9582 Answers
303 Consultations

5.0 on 5.0

Hello sir , it is advisable to proceed as per the JDA .. If JDA does not authorises land owner to sell the flat , then it is advisable not to proceed further ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

The Joint Development agreement and General Power of Attorney executed by the land owner clearly states that the builder on behalf of the Land owner has the right, title and interest to sell his share of Constructed Area (Flats that have fallen to his share) in favour of third parties (Purchaser/s), now once the Sharing Agreement is drawn up, the builder and land owner accept which flats have fallen to their respective shares.

In lieu of this and as a standard practice, the name of the Land owner is always shown as the Vendor, duly rep by his GPA Holder and agent the builder. In addition to this the name of the Builder in the sale agreement will be shown as the Consenting Party, which is the standard practice.

You would not require to get this format changed. Go ahead and proceed. There is no risk involved now or in the future.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Madam, as long as the sale agreement and sale deed mentions the landowner and the builder as parties who are selling the flat and you Vendee as the purchaser, I don't see there is any risk. Here, as per your question, the landowner is the vendor and the builder is the consenting party, and both sign as vendors and you or your representative signs as vendee, it is perfectly alright. I don't see any risk just because it doesn't appear in the first page. For a better appraisal and opinion, I would like to see the agreement copy.

Mohd Abdul Gaffar
Advocate, Hyderabad
8 Answers

4.4 on 5.0

There are two scenarios in your case.

1) The Joint Development Agreement should have mentioned what will be land owners and Builders share ratio of flats. And afterwards from whose share you are going to purchase flat that will be clarified.

2) Check who has total rights on the flats as per JDA. Once the development agreements is made who has full ownership rights on the property. Or better to take both of parties signature on sale agreements of flats that will be purchase agreement for you.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

The unregistered supplementary agreement doesn't form part of the JDA as it is not registered, Vendor in this case is not clear as the % of share is divided among the builder and owner but which flat belongs to whom is unclear.

And a unregistered document for purpose of Transfer of Property is not a reliable document. So kindly follow the advise of your lawyer for saving yourself from future litigation and problems on reselling.

Though this is the usual practice among builders and developers, if you buy it then also you will have complete possession of your property but in case of dispute of share among these two you can suffer unnecessary litigation expense and there can be problems on future sale of property.

Due to this ongoing practice of builders under RERA such provisions are incorporated that the promoter is liable person for scheme and no involvement of land owner so that there is no such confusion.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Supplementary agreement must be registered so that there will be no problem In future. Builder name should be in front page as mentioned by your lawyer. Please go through recitals of JDA since it does not mention the number of flats or shares which will fall into that of owner.

Swarnarka Chowdhury
Advocate, Mysore
1879 Answers
5 Consultations

5.0 on 5.0

Hi Dear client

How can you be so foolish without the owner how you made the sale agreement? In future if they file case against that they haven’t made any such agreement what will you do.. as your lawyer suggested you is correct if you want to purchase the property it should be at your own risk.. so I suggest you that call that person immediately or approach him immediately make changes in the sale agreement or else you will be in trouble or else if they don’t agree send legal notice to them that they have cheated you. For further details call me.

Koushalya Pattan
Advocate, Bangalore
174 Answers

Not rated

Dear Sir,

Purchasing the flat/apartment itself brings some risk. Here, in the legal parlance, it is immaterial whether the name of builder as consenting witness is mentioned on front page, middle page or on last page. There is no standard proforma prescribed under any law. Only the name of previous agreement holder will be mentioned as consenting witness on the front page. But in all other cases, for example, the names other family members of vendor would be mentioned only on the last page of sale deed. If you have on builder and the landlord, then go ahead. No problem will arise. If problem is to be arise, then builder can raise his voice even if his name mentioned on the front page. If you have any more doubts please come to my office in Bengaluru.

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PLEASE PUT THE FOLLOWING ENTIRE TEXT IN GOOGLE SEARCH AND GET PROFORMA

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Santhosh Kumar, Aged about 32 years, are all aware of this sale and agreed to this sale transaction and signed as consenting witnesses to this sale deed. NOW THIS DEED OF SALE WITNESSES:- a) That in pursuance of the sale agreement dated 10.07.10 the purchaser paid a sum of (i) 50,000/- (Rupees Fifty thousand

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Kishan Dutt Kalaskar
Advocate, Bangalore
6135 Answers
483 Consultations

4.8 on 5.0

1. The supplementary Agreement states that the flat you are proposing to buy falls under the land owner's share of the developed flats.

2. Having the developer as the consenting party makes the sale deed legally valid.

3. Only grey area is that the above Supplementary Agreement is not registered.

4. So, get the said Supplementary agreement registered before you buy the said flat to be sure about the fact that the developer of his descendants will not claim later on that your flat falls with in the share of the developer and his signature on the sale deed has been taken under coercion or fraud.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

The main issue in this is that the said agreement is unregistered and bad in law. You should not bank upon an unregistered agreement. In the title clause the mention of builder is also important.

Prashant Nayak
Advocate, Mumbai
31795 Answers
175 Consultations

4.1 on 5.0

Basically the joint development agreement is only for developing the vacant site into units of dwelling houses which are called flats/apartments.

The builder can either collect the consideration for his services in terms of money or he can choose the option of getting some constructed flats as his share as per the supplementary agreement.

The supplementary agreement is a document to be executed between the builder and the land owner.

You can verify the same through court of law.

T Kalaiselvan
Advocate, Vellore
84709 Answers
2172 Consultations

5.0 on 5.0

No.its just the manipulation of name if the builder is shown as developer than the reference of there registered agreement should also be mentioned .Also the complete specification of builder as developer /builder should be mentioned as mentioned under there agreement.

As:

The builder aka developer has agreed under this registered agreement reference number _________ to develop the land of vendor and they together agree to sale same to the purchaser.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Ownership of land vests with the landowner

2) joint development agreement must have been entered into for development of land

3) further landowner must have been executed irrevocable POA to develop the land

4) draft agreement has to be perused ti advicefurther

5) get the agreement vetted by your lawyer

Ajay Sethi
Advocate, Mumbai
94511 Answers
7484 Consultations

5.0 on 5.0

Dear Sir,

It is nothing but beating around the bush. Land owner again shown as Vendor but builder is not shown as Vendor as conveyed by your own advocate. Where is the compliance of instructions of your advocate. The following narrations of you "he JDA does not have the list of flats and allotment mentioned in it but only undivided share of land in percentage is mentioned.

The list of flats and allotment of flats is mentioned in another supplementary agreement which is unregistered. " brings you in danger zone at any time. Try to understand. Ask them to get JDA get registered with specific flats fallen to the share of builder and land owner. There is no improvement by changing the words from builder to Developer. Sir, think twice before you leap into this transaction.

Kishan Dutt Kalaskar
Advocate, Bangalore
6135 Answers
483 Consultations

4.8 on 5.0

1. Builder is the developer herein and the Vendor is the landowner.

2. The sale deed must have the mention of the builder and the joint development agreement.

3. The entire drat of the sale deed is required to be changed.

4. Thereafter the developer shall have to sign the sale deed as the consenting party.before the Registrar.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

The builder cannot be a vendor at any time, he can be shown as a power agent or a developer only.

The property sale agreement is different to that of the construction agreement hence you may see that you dont get confused with different terms put together.

T Kalaiselvan
Advocate, Vellore
84709 Answers
2172 Consultations

5.0 on 5.0

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