You can execute separate agreement in this regard, mention complete detail of case and builder has full information about it and at the instance of builder this separate agreement is executed and builder has declared to settle the case in legal manner and shall only be responsible if any third party claim arise with regard to JDA.
Inclusion of a clause on dispute on land in agreement with a builder
We want to enter into an agreement with a builder.However there is a case filed by some miscreant claiming title of the land..The builder says he can sort out the issue out of court.We want to include clause on legal dispute by mentioning the case in the agreement paper and the clause of getting certified copy of settlement from the court before starting the work. However builder has reservation.He says customers may not be interested in the flat after seeing dispute clause in the agreement. Please suggest whether we can mention the clause in the agreement.If yes up to what extent to get mutual agreement with the builder without loosing our interest.
Asked 4 years ago in Property Law
Religion: Hindu
8 Answers
There can be indemnity clause in your agreement wherein builder indemnifies you in case any claims are made by third parties
You can mention in the agreement as dispute is common nowadays in every development project. Otherwise tell him to execute separate agreement for the same if he has reservation for the same
Insert Indemnity Clause in Agreement. Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to pay for potential losses or damages caused by another party.
1. IF somebody has filed suit in Court for their claim over the Property, THEN it would be illegal to enter into ANY property transaction about such property matter which is sub-judice in Court. This would invite prosecutable offences on you for misrepresentation & breach of trust.
2. You have to get Clear order from Court about property in your favor. There will always be many nuisance & blackmailer people who will try to swindle for their gains. Hence it is best to get a latest date court order and only then move for property transactions.
1. You can avail two options in this regard One is to include indemnity clause in the agreement which states that builder will be responsible for any claim filed by third party after this agreement.
2. And other is to make a separate agreement regarding case settlement and further claim due to that case will be solved by builder.
If you confirm that there is a dispute against this property i a court of law, what prompts you to proceed with the purchase of this property.
Have you obtained a legal opinion from a local lawyer or not, if yes then what is your lawyer's opinion about the reported dispute?
No clause in the sale agreement or sale deed mentioning the dispute may come to your rescue at the time of crisis or any court cae, the builder will not be available after selling the property to you to answer the court case.
Hence in my opinion, it would better that you keep off from the proeprty till the dispute is resolved legally or otherwise.
You shouldn't mention that in the agreement. Rather try to sort out the problem and then go ahead with your plans. Also out of court settlement cannot be done by the builder unless you authorize him to do so. Therefore be present in the negotiations.
