Purchasing an apartment unit from a real estate company
Hi I am purchasing an apartment unit from a real estate company. They are providing this from a third person X (whom they call as their own investor) and through transfer of assignment. The house is still being built by the builder but more that 20% amount is already paid by the third person X. Now they ask me to give a cheque of booking amount with the name of X. later they will ask for a check of remaining amout of 20% with another cheque. for the booking amount they will give a receipt with their name. on the second cheque realization they will again give a receipt and signed copy of agreement. Then they will take the loan (80%) sanction latter and these payment proofs to the builder and get a transfer of assignment, that is between me, third person X and builder.
All this looks okay, but if they are not true to their words then what to do? How can I prevent any fraud chances by taking care of legal proofs. Please advise me. I am from Bangalore.
Asked in Property Law from Bangalore, Karnataka
1) is builder reputed ? check his earlier projects . whether possession has been delivered on time ? quality of construction ?
2) contact a local lawyer . ask builder to provide inspection of all approvals obtained . obtain certificate that title is clear and marketable .
3)then only take a call whether you should purchase said flat or not . most builders delay delivery of possession by 6 months to one year on account of delay in obtaining approvals from authorities
contact a local lawyer . ask builder to provide inspection of all approvals obtained . obtain certificate that title is clear and marketable .
Advocate, New Delhi
1. Carry out the due diligence test by availing the services of a lawyer. The chain of documents which confer title have to be inspected threadbare.
2. The antecedents of builder have to be ascertained. Check whether any of his earlier projects were mired in litigation on account of delay in possession and other factors.
3. Due diligence before purchasing the property can obviate the risk of litigation breaking out at a later stage.