Case Scenario: A tenant approaches his landlord to buy the same rented property. They agree and proceed for the same. As they have a relationship of almost 5 years, landlord requests to transfer token amount before he shares photocopies of the property documents for verification and bank loan purpose, before any MoU is signed. There’s no property consultant involved. The tenant has the rented property as his present and permanent address in all government documents (as per the leave and license agreement that permits the tenant to use the address for all communications and documents including passport etc.) Queries: 1. Is it okay to transfer token amount before checking property papers, signing any MoU etc. 2. In the absence of a property consultant, who should lead the paperwork? MoU, Sales Deed, Search Report, Appointment in Registrar’s Office, Stamp Duty Payment and Society related work etc.? 3. Can tenant use the rented address in the sales deed as his residential address? This is the same he’s buying 4. Anything else that this deal must take into the consideration
No, agreement to sell is must along with non encumbrance certificate - document verification.
Any local advocate will do all this or can approach for the same and if you will applying for bank loan than search r will prepare by bank advocate.
Not as permanent residence address but temporary address.
Non encumbrance check is must.
1. Is it okay to transfer token amount before checking property papers, signing any MoU etc.
Preferably no. The parties can enter into a MOU. Under that MOU the buyer can pay a token on the seller providing him photocopy of title documents for his due diligence. If the buyer is satisfied with the seller's title then the deal can go through. If not then the buyer can inform the seller about his dissatisfaction on seller's title as communicated to buyer by his bank and thereupon the buyer can notify about the same to seller by a notice and the seller should then return the token without any interest to the buyer.2. In the absence of a property consultant, who should lead the paperwork? MoU, Sales Deed, Search Report, Appointment in Registrar’s Office, Stamp Duty Payment and Society related work etc.?
legal due diligence can be done by a good competent lawyer whereas search can be done through a registration clerk3. Can tenant use the rented address in the sales deed as his residential address? This is the same he’s buying
no problem. Mere using of owner's address in ID documents would not enlarge the licensee's title to that of an owner4. Anything else that this deal must take into the consideration
if the parties are reasonable and practical, then nothing else is required. Always keep an open and business minded approach.
Verifying the property documents is very much essential before transferring or paying the token advance. It is advisable that after through verification and getting title scrutinized on the purchase transaction must be initiated.
There must be some proof to the buyer that the amount so transferred is towards the token advance or part sale consideration property under the occupation of the buyer as a tenant. Token advance or part sale consideration amount must be paid under an agreement of sale prepared on non judicial stamp paper. At least a receipt must be obtained in the event of entering sale agreement is not possible.
You can approach an advocate for getting property documents verification documents and document writer for getting sale deed registered and its related works.
yes the tenant can use the rented address in sale deed as his address. In fact it is advantage to the buyer as the buyer is preoccupied the property and already the buyer is in possession of the property
Ensure Clear title of the property. Verify the layout, approved plan from concerned municipal authorities. Encumbrance on property must be search and note that what the transactions took place with regard to the property. insist for payment of up to date property tax etc.,
Sign MOU then make token payment
2) let landlord do the paper work
3) mention some other address as his residential address
1. See you can take signature of land lord on agreement before transferring any amount wherein condition can be mentioned it title is not clear the owner shall refund amount along interest .
2. See the buyer can engage.an advocate or consultant to complete the task.
3. If same address is there in his proof then he can mention same.
4. See amount should be transferred through bank and after proper agreement.
after executing MOU make token payment and mention terms and conditions.
tenant can mention his same address.
1 it's better to check all property papers token once given is not returned.
2. You yourself or through a lawyer.
3. He can use with permission of landlord.
4. Check all the documents
1. The documentation scrutiny and verification and drafting of further Deed/s must be done ONLY thru a experienced Property Lawyer.
2. Address of Seller & Buyer cannot be same, unless and until the Buyer is a blood relative of the seller.
Is the following process will be good: 1. Property Card via Society Manager for Search Report before token 2. Or before token sending the MoU draft to the seller for his approval, printing and taking along for signing it along with the token 3. Checking originals on the day of token and signing MoU. Taking photocopies of all the documents 4. Giving it to the bank and property lawyer for their processing 5. Giving a public notice in the newspaper and wait for 15 days 6. Post that completing self-funding 7. Paying Stamp Duty and Registration 8. Registering Agreement of Sale 9. Asking bank to make the balance payment and submitting all the documents to the bank 10. Registering Sales Deed
Registering Agreement of Sale
You must seek inspection of original documents before making token payment
2) get agreement vetted by lawyer
3) you can issue public notice in newspapers before purchasing tenanted property
1 before token for approval.
2. All the things verify before token cause many times token is not returned
1. There is nothing wrong in paying a token amount but always obtain a receipt stating that this is a token amount for this purpose.
2. You can approach a lawyer in the local who has expertise in the property dealings and property laws.
3. He can very well use the same since that is his address now.
4. Obtain a proper legal opinion from a local lawyer before proceeding.
You are mentioning about the process of the sale deed which can be taken care of while your vendor shall be executing the registered sale deed in your favor.
Before that you may consult a local lawyer who will be able to give a legal opinion and his recommendations.
The lawyer will guide on all such further issues as well.
Take title search before entering into agreement and giving the token amount, yes original documents should be checked before signing agreement along with all chain documents.
After MOU is done you can give agreement and other document for bank loan approval.
After all checking agreement can be done and balance payment can be made before the sale deed.
1. No it is not advised to transfer token money without signing any document of proof like agreement of sale between the parties.
2. You can appoint a lawyer who is expert in property matter for drafting of documents.
3. Yes tenant can mention the address as rented accommodation.
4. The process you have mentioned is perfectly fine. You can proceed with this process.
I am the home loan seeker and the bank has no objection for name of my wife and my mother in law, who are self-funding the property, to appear in the agreement of sale and subsequently in Sales Deed. Now the mother has suggested that the name of my wife should come first in the agreement of sale. More so, like "Wife's Name" d/o "Mother's Name", "My Name" husband of "My Wife's Name" and then "Mother's Name" mother of "My Wife's Name" Is that necessary. She wants to exit her share after 3 years and claiming this order of writing names will help in transfer / succession etc.
It does not make difference whose name comes first
all 3 would be co owners and have equal share in property
WHY TO MAKE THINGS SO COMPLICATED
JUST DESCRIBE THE RELATIONS OF THE PURCHASER PARTIES IN THE RECITAL PORTION OF THE AGREEMENT/SALE DEED
THIS WILL TAKE CARE OF YOUR MIL'S CONCERN REGARDING TRANSFER/SUCCESSION
See there is no difference the name can be written in any order first second or third , it doesn't affect the ownership in anyway.
Mostly the name of first owner come first so it depends on your agreement with your family members
We are going through a very frustrating situation. We had sent a draft of MoU, made by our Prop Lawyer to the seller for his consideration and acceptance, a week ago. He said he would forward the same to his prop lawyer with his comments and come back. He took one week's time to come back after me chasing him after every two days. The draft he sent was "empty" and he gave the excuse that there's some "font conversion issue" This happened yesterday around 6 PM. He said he would ask the lawyer to send the draft again. We have to meet to day for the token and MoU Signing. How can I accept an MoU which will come few hours before the meeting and also the same needs to be printed on NJ Paper of INR 100? I had obtained CTS Number of the property from him for the search report that will come by next week as per the lawyer. My query and worry is: Is there a deliberate attempt to avoid MoU? Can we give token in the absence of MoU by signing a receipt on a revenue stamp that also puts condition "MoU to be signed" Or Should we wait for the search report and then take the next steps accordingly? Please note that the MoU shared with him is standard one, balanced not one sided for either party, containing the whole procedure of the deal till Sales Deed registration etc.
See in MOU condition can be incorporated that if any mistake in title of the property or if title is not clear then the seller shall indemnify you and pay the token amount back along the interest.
See if seller is ready to wait , wait till the time search report comes and his final draft for MOU comes.
I find some foul play here. Don't do anything hastily as it can create problems. Study the mou properly and then decide
It appears to be an attempt to delay MOU
2) don’t give any token money without MOU being signed
3) then take search report
Your mother in law is affected by some whims hence she is trying to play this gimmick.
However there is no legal infirmity in enforcing such funny ideas of mentioning the names with the description as desired by your mother in law, if you dont have any objection to this then you may proceed with the fancy though of your mother in law.
If you suspect any foul play either by the seller or the lawyer involved or anywhere, then you may always put the process on hold because after all it is a huge investment which should not disappoint you in any manner.
In my opinion, why dont you wait for the title search results because till it is confirmed the seller's clear and marketable title cannot be ascertained.
Having faith and trust is different to that of the practical issues that may crop up at a later stage due to which you may have to unnecessarily strain and lose your peace.
Title Search Report: Mismatched Area Entry The title search is undertaken by my lawyer last week and he just called me to convey that there's a huge difference in the area mentioned in the latest Index-2 of the property and previous Index-2. Index 2 of 2006 transaction recorded the area 80.29 Sq Mtr and Index-2 2005 transaction recorded 66.91 Sq Mtr. Now he said he will reconfirm it from the sub registrar's office which will give the certified confirmation. We are meeting the owner tomorrow for signing the MoU and taking the property papers for bank etc. Is this an objectionable entry that makes the title defective? MoU any states that the token will be refunded if any adverse entry is found in the title. Please help!
It's risky I will not advice you to enter into the said transaction
Ask seller to get index 2 corrected as area of property is less than claimed by seller
title is defective
If there is defect in area then it can make area dispute in the property.
If such indemnity clause of refund is there then you can go ahead with MOU
Registered Paper Clear but Wrong Entry In Index 2: In continuation, the property lawyer check the chain documents of the property we are pursuing. In all the agreements, the area mentioned is similar. But in the Index -2 of 2005 between First & Second Owner, the record has "carpet area" mentioned in "built up" area (Bandhavi Kshtraphal). In the Index - 2 of 2006, the record has "built up" area mentioned in "built up" area (Bandhavi Kshtraphal). Now the lawyer had said that the title is marketable and we can go ahead with the transaction. This we confirmed over the phone in front of the seller (who is our landlord for last 5 years and a gentleman). The seller didn't have Index-2 and only original papers, OC, Share Certificate etc. He mad call to his person who go this transaction done in 2006. That person said its an entry mistake and can be rectified. He also called his lady lawyer who said the same thing. Our lawyer insisted that the seller must get this rectified or pay us to do the same and he will get it done but we can go ahead with the transaction and register the deal. My mother in law is not keen to do it through our lawyer and want this to be done by the seller. Until it is done, she doesnt want to go ahead. We are also made aware of the fact that this is done in Pune now. Can take time. I checked on http://igrmaharashtra.gov.in/SB_DOWNLOADS/DATA/forms/application/Application%20for%20correction%20in%20records.pdf that a correction form is available. PLEASE HELP HOW TO GO ABOUT IT.
Rectification of index 2 is necessary as area of property is incorrectly mentioned
Take printout of correcrion in Index 2 application form from igrmaharashtra website ,fill that form attach xerox copy of INDEX 2 and all the copy of sales deed
2. Higjlight the mistake in xerox copy
3. Submit to sub registrar office It will take one month
4.Sub registrar will send this copy to Joint registrar and after approval from joint registrar feeezed index2 copy will get unlocked for correction
Already advised
See index 2 can be rectified by making application to the subregistrar office further if the deed is correct then based on same index can be corrected.
INDEX 2 CANNOT RECTIFY: My lawyer who assured me that he would get the rectification done updated me that the correction cannot be done for the following reason: 2005 Agreement For Sale between 1st Owner and 2nd Owner has Carpet Area mentioned instead of Built Up Area. In the Agreement Of Sale The written words "Carpet Area" is crossed by pen and written "Carpet Area" again which is very strange. He said that the registrar told him that the stamp duty is paid on 720 Carpet area whereas should have been paid on Bulit Up Area. In the 3rd Agreement Of Sale (Lates Agreement) the area mentioned is Carpet only but the Stamp Duty etc. is paid on Built Area along with Life Charges etc. which mentioned handwritten. Both Agreement For Sale are bought in less than market value. First one (2005) at marginal lesser price and latest one (2006) with a difference of 8 lac between market and agreement price. I am in a confused state of mind because he claimed that Index-2 rectification can be done and now telling us this reason which was not investigated before telling me. Please note I introduce him to the seller for bearing the expenses. There's no communication happened between them and this happened in last two days. Now, if we accept the situation and go ahead with the deal, the only risk which he told us is that the lady who sold to the latest owner can claim the area (Built Up-Carpet) but said highly unlikely as its more than 12 Years. The lady lives in the same society and does not look like she would do this. Sweets exchanged, society members meeting happened after he assured the rectification can be done and he would get it done. Please advice if its going to be a transactional or succession issue in future. Can this be seen as a technical error in Index-2? Bank still has to get the search report. Please help!
Wait for bank search report
if index 2 cannot be rectified don’t purchase the property
I find many reasons you should not go for the said deal it will get you in defective title
From the search report it was found that ther is some defect in the title to the property i.e., with respect to the extent of the property, therefore it is not advisable to proceed without clarifying the details about it.
You may discuss at length with your advocate before proceeding.
Your mother in law is right in her opinion that this issue needs to be rectified that too by the seller himself and not through your lawyer.
Let the seller rectify the defect because he knows the problem of his property, hence it is his responsibility to sell the proeprty with clear and marketable title with all the records perfectly matching to fhe other in the link documents as well as the government revenue records.
Since your lawyer has categorically stated that this error cannot be rectified for the reasons specified therein, it may not be advisable to proceed with the purchase of this property.
The lawyer's report after confirmation with the authorities concerned may be clarified with a second opinion through some other lawyer in the local, if recommended you may go ahead or you may think of dropping the plan to buy this property.
You may discuss with yor family members and take a wise decision at the right time.
My mother in law has a capital gain account and savings as self funding. My wife and myself has our savings. Agreement For Sale will have their names and bank has asked them to make Co-Applicants. My mother in law is very stressed that after putting her life savings also, she has to be responsible for the bank loan (though she and my wife are not going to pat EMIs, I will do that). Also, the title is defective. But the bank has not raised any issue as such (as I think their interest is in the interest, only). Also, i showed my discomfort to the lawyer today when I collected the search report as he's not giving a clear verdict "To Go Ahead" or "Not To Go Ahead" He keeps on saying "Now the decision is up to you as I told you the past history of the property" He also said that after many years no one would turn up to claim anything. After your (all above respected and abled advocates), we have decided to say "NO" to the seller and ask for the refund of token money which he is supposed to do as per the MoU. Will the difference in the area recorded in Index 2 of 2005 and 2006 and absence of rectification deed between 1st and 2nd owner (the seller is the 3rd owner) be a good ground to back out from this deal? It is written in MoU "In the event of any adverse entry found in the search report that makes the title defective and unmarketable, the deal will be called off" Please advice so that we proceed accordingly.
Yes it's a good ground as the said facts are concealed from you before the said deal. He needs to legally return your money.
Since your conditions to cancel the sale agreement is very clear and tenable in law, you may go ahead with your decision to cancel the agreement and ask for full refund of the advance amount.
It is not necessary for you to buy the property having defects in title itself.
You can always get a better property to purchase in the near future.
it would be good ground to back out of deal and claim refund of token money paid by you
take the plea that title is not clear and marketable and such you want refund of money paid by you
See in case once document is registered and there is error in Index- 2 same can be rectified to the extent of the document. i.e. as per what is written in document same can be entered. Further if the limitation period is crossed they cannot file a suit now. Though you can deny in case there is difference in area and defect inn proper title of property.
Yes it will a ground to cancel the deal and seek refund of your amount from the seller.
Yes it will a ground to cancel the deal and seek refund of your amount from the seller.
THE SELLER SUGGESTED TO MEET HIS LAWYER AND THEN TAKE A DECISION: I conveyed our decision to the seller on Sunday. He suggested to meet with his lawyer as well who can give her point of view and whether rectification deed and Index-2 correction can be done on the title or not. What questions I must ask to her? And in case she says that ignore it not a big deal, what should be the reply.
if lawyer say not possible to rectify index 2 cancel the deal and seek refund of your money paid by you if nay
Ask her to being rectified Index, and give title clearance of the property from seller side.
In case they respond that it is no big deal call off the sale.
I don't seem that aforesaid illegalities can be cured to rectification deeds. If not then proceed as we decided above.
In case the lawyer is suggesting some steps which you may feel not appropriate or legally valid then you can very well seek a second opinion about this from your own lawyer too.
You can produce the copies of all the relevant papers before the lawyer from whom you may propose to seek second opinion and proceed only if recommended