1. NOC from bank needs to be purchased first.
2. Applicable stamp duty on Assignment deed and sale deed need to be paid and the both agreements are required to be registered at sub-registrar office.
Buying a resale mortgaged under construction flat
I am buying a mortgaged under-construction property. The seller has signed a sale of agreement with the builder and wants to sell the property. The seller has an outstanding loan with a bank. Now, I want to take a home loan in order to buy the property. Builder, me and the seller are signing a tripartite agreement which we are referring to as Agreement of Assignment in which Assignor is Seller, Assignee is the buyer -that's me and Builder as Confirming party. Builder has already given a No dues certificate over the property to the seller. Builder wants this Assignment Agreement to be registered and be referred in Sale deed since the amount that the builder got from the seller is lesser than the amount at which the property is getting sold by the seller to us. So, getting an agreement of assignment made, referring this doc in the sale deed and getting both these docs registered- Is this a correct procedure? Also, will I attract more stamp/registration fees as in this case both assignment agreement and sale deed will be registered?
Asked 6 years ago in Property Law
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12 Answers
Sale deed is totally different from assignment agreement. But in your scenario if you doing both by way or registration it's fine
You will have to pay stamp duty and registration fees as per current price. So what soo you're doing is correct.
It is mandatory to register the tripartite agreement to confer clear and marketable title to property
2) once tripartite agreement is executed duly stamped and registered you don’t need a sale deed
3) it would attract stamp duty and registration charges
Yes, the deed of assignment is anyway a compulsorily registrable document and there is no difficulty if you register it.
2. However since stamp duty of such deed is not uniform all over India, you should get in touch with the Registration Officials itself to know the amount of stamp duty.
3. Yes, this assignment deed is to be mentioned for sure in the sale deed. The Builder is not asking for anything impermissible.
1. Subsequent "Sale Deed" can be registered by paying stamp duty of 100/- and registration fees as 1000/-, PROVIDED full stamp duty and registration was paid on the Assignment Deed.
2. You are advise to go ahead with the Tri-party agreement, with joint signatures of all three related parties.
Agreement to sale will include all the terms but not sale deed otherwise double stamp duty payable if sale deed not already executed between seller and builder.
If no than sale deed will execute builder and seller will not involve as seller but include as witness.
Assignment agreement or ATS either will execute and all the facts will mention in it. This will execute for the understanding between the parties and legally bound the seller and builder.
- A Assignment agreement is usually used to transfer rights on a property from one person to another.
- Further, it can be transferred from one assignee to another , and the deal can keep moving for several months or years.
- Whereas , the Sale Deed means that a property has been sold for a purchase price. This means that the property is now with a new owner and the Seller has received the consideration amount from the purchaser i.e. the transfer is complete. Hence it is mandatory to be registered as per law, and is acceptable document for loan purposes etc.
- Referring this document in he sale deed is not mandatory , but the builder for its safety purposes wanted to do the same ,
- As per registration Act, an assignment agreement needs to be registered.
1. Yes, it is the correct procedure and it will safeguard your interest also since by registering the Assignment Agreement, you are binding the Builder also who will be legally bound to register the sale deed in your favour.
2. Under such circumstances where the first buyer sells of his under construction flat beforev it is registered, the Builder takes 1% amount of the 1st sale price for reallotting the flat to the new buyer.
3. Make sure to take a letter from the Builder that he has no objection in your buying the said flat from the 1st Buyer by paying him the entire sale proceeds.
4. Also arrange to take a NOC from the bank of the Builder from where the Builder has availed loan for construction of the project by mortgaging it to secure the said loan.
1. Yes this is correct procedure as in case of any dispute registered document have more weightage as compare to unregistered document.
2. Yes you have to pay stamp duty at the consideration price on which the deal is finalized.
tripartite agreements need to be relevantly stamped subject to the state where the property is located.
Any document that is being registered will attract the applicable stamp duty and the costs towards registration.
In fact the tripartite agreement is the solution for this kind of transaction involving the immovable property and any deed towards the transaction pertaining to the immovable property shall be mandatorily registered.
You may decide based on the prevailing circumstances on all such future issues..
