Dear Sir/ Madam I am selling a property which is mortgaged with a NBFC and hence originals are with them. The Buyer of this property buying this place with the help of finance from his bank . As per buyer , his bank will be holding back approx. 15-20% of the total consideration on the day of registry as I will not be giving originals on the day of registry . They will release this amount when I give them originals , say a month after registry . Originals will be released post payment of my outstanding with NBFC and since the sale amount of property is much higher , outstanding will be fully settled with the amount received on day of registry. Infact the buyers bank has made the outstanding amount cheque in the name of my NBFC . Further as per buyer , in the registry document all amounts will be mentioned along with Cheque No and date BUT it will be spelled out that we have received the entire amount and that the buyer has received the originals and we have relinquished all rights of the said property. However in the registry document I would like the actual fact to be brought out that 15-20% of amount shall be paid on receiving the originals and that this amount is presently withheld by buyer's bank . To this , the buyer is not agreeing and rather saying that his bank will not agree to such a registry and that the bank demands an absolutely clean registry with no ambiguity whatsoever . My question : 1.) Why is it not possible to just mention the actual fact in the registry ? 2.) How do I safe guard my interest ?
1. What you have described is a routine & normal procedures adopted by the Financing Agencies.
2. However, you may input the relevant clauses as "conditional clauses" subject to fulfilling the 100% criteria and handover of original documents and also a rescinding /revoking clause, for /in the event of any default.
1)it should be mentioned that 20 per cent would be paid on receipt of originals from
bank
2) best option is for purchaser to take loan from NBFC only so no need to retain 20 per cent
1) You should actual sale consideration/price in the sale deed. The same should be split between you and NBFC.
2) Now Ask buyer's bank to prepare reimbursement cheques on your and NBFC accordingly. Take it's photo copy from bank and mentioned in the payment schedule of the sale deed.
3) Don't give possession of the property unless and until you receive whole payment. You have to mention all details in the agreement. That till date how much payment you have received and on which date and in future on which date you will be receiving balance amount etc.
4) First you collect whole amount from buyer whatever he is going to pay and the finance bank of buyer's ask them to prepare cheque on NBFC and Your name. After releasing the old sale deed and current sale deed your balance payment will be given. Bank knows all procedure all this type reimbursement.
1. There is no difficulty if you mention the actual fact. In most cases full amount is paid at the time of registration of the sale deed and I am not sure why this is not done in this case.
2. So you may either insist on stating actual state of affairs or look for another buyer or another financier.
1. See first of all the amount before registration should be cleared as you need NOC from NBFC. Also in registry you have to mentioned that total amount is received and originals are given.
2. See seller have to clear loan get NOC after receiving complete consideration from buyer then register the property.
1. You cannot make registry without full payment mentioned on it because rectification will be costly after full payment.
2. You can make a separate agreement regarding payment of balance payment with buyer.
1. With a mention about pending payment of a portion of sale consideration amount, the registered sale deed cannot be executed.
2. It is in the trust or create a document mentioning the facts which can be utilized as documentary evidence at the time of disputes if any.
Please do not make this mistake of not mentioning the exact details of the amounts you receive and when you shall transfer the originals of the property to the buyer. If his bank is not agreeing to the same, then it is the banks lookout. Otherwise, the NBFC and Bank officials can have a joint meeting.,
Why not possible, sale can execute in part payment.
Execute tripartite agreement with buyer/ bank/seller. Mentioning 15-20% of amount shall be paid on receiving the originals and that this amount is presently withheld by buyer's bank and than only possession will deliver to buyer.
And this that
we have received the entire amount and that the buyer has received the originals and we have relinquished all rights of the said property - Is only to complete sale deed formality. And once full payment will receive , MOU will expire and sale deed will attain finality. .
you can mention a clause in sale deed about consideration amount in case if bank fail to pay within 20 days then You should approach the court for cancellation of the sale deed on ground of non fulfillment of contract by the purchaser.
