Dear Sir,
Yes, it is proper. But as a double security you take signature of POA of X ib sale deed as consenting witness.
Resale of unregistered flat in Bangalore
Hi , I was looking into a property in bangalore for buying . The current owner has paid the total amount to builder but dint register his flat because he moved to US that time and never came back . Now he is trying to sell his flat which is not registered to his name . He has just made the payment to builder. Now if i want to buy that property i heard that 1. ME, Builder (as seller, because Mr X has not registered his flat) , and Mr X will go into an agreement . 2. Mr. X cnt come to India in person to sell his flat So he will give POA to his brother in his behalf to do legal proccedding. 3. Once that triple Agreement is done builder will create the new sales deed in my name and with that i can register the flat and get the ownership . Is there nay issue with this ? Is pnt 2 OK ?
Asked 6 years ago in Property Law
Religion: Hindu
14 Answers
Since, flat has not yet registered in X name, Sale deed will execute will builder. X will give POA to his brother to execute agreement with buyer and builder, whole story will mention and X will agree to relinquish his right of any kind, in return of payment paid to builder.
You can do tripartite agreement and purchase this flat but the concern is here that to whom the bank will make the payment to X or builder if you're taking loan from bank.
Check with finance bank that on whose name reimbursement cheque they are going to issue builder or X and Mr.X and builder are ready for it.
Dear Sir,
You have to enter a tripartite agreement with both builder and seller. If you are availing loan, your loan agent will be able to help you with the process. This is a fairly common practice for investors wanting to cash in.
X can execute POA in favour of his brother fir execution of tripartite agreement and it should be duly stamped and registered
2) builder can then execute registered sale deed in your favour
1. EXECUTE a full Stamp Duty paid Registered Sale Deed (not agreement to sale) with joint signatures of the Builder & Original Buyer and Yourself, wherein the Builder & Original Buyer will sign as "Confirming & Consenting parties". Herein annex the POA of original buyer.
2. Original Buyer can delegate POA (duly attested by local embassy /consulate) and THEN Stamped (500/-) in India. Said POA holder can sign on the Sale Deed on behalf of original buyer.
3. Legally there is no other documents /Deeds required AFTER above.
In the current situation, the present agreement holder can enter into a Deed of Assignment with you, the proposed purchaser, once this is done, and some part of the money can be transferred on signing of this agreement. Post which you can approach the bank and process the loan for this purchase, with NOC from the builder to proceed in this regard and manner. Once this is done, and the loan is sanctioned or approved, you can get the sale deed duly executed in your favour from the builder, at the time of registration, if the present purchaser cannot be present, his POA holder can sign on his behalf as the consenting/confirming party to the sale deed.
The POA to be executed by the present owner in his brother favour must be duly attested by the indian consulate or embassy and thereafter this document must be duly stamped in India for it to be legally valid. Except this, there are no other glitches.
No this is right procedure to follow there is no issue with same a triparte agreement shall be made and based on same builder will do sale deed in your favor.
Tripartite agreement is legally perfect .
Point 2 is also legally OK.
The proposed tripartite agreement between the buyer, builder and the seller would be proper option.
This is not a strange or new ting in such property transactions.
This type of agreement is commonly prevailing everywhere especially because of the circumstances.
You can very well enter into a tripartite agreement with the POA also along with the builder.
You need to execute triplicate agreement with builder and seller or the seller needs to register in his name and sell the same to you
1. If sale deed is not registered in favour of the person you are planning to buy it from then he has no title to the property, consequently he has no right to sell it.
2. The man, whom you have called 'X' cannot sell the property even by executing a GPA in favour of his brother as he has no title to the property in the first place, so he cannot give authority to his brother to sell a property of which he is himself not the owner.
3. Firstly, a tripartite agreement should be executed between you, builder and X, and only thereafter the builder can sell the property directly to you.
You have to enter a tripartite agreement with both builder and seller. If you are availing loan, your loan agent will be able to help you with the process.
Yes the procedure is perfectly fine.
And point no. 2 is okay if the POA is registered in India.
