No legal consequences but it should be tripartite agreement and not nomination. They may be having allotment letter, that will use in place of sale agreement.

If any tripartite agreement can be  executed between seller you and builder Wherein builder acts as confirming party you can proceed ahead with deal provided bank is willing to sanction you loan 

1. Well, without the sale agreement I wonder how your seller had interest in the property and you had nominated you. 

2. Probably he has a allotment letter with the developer which on payment of earnest money amounts to sale agreement. 

3. So if your seller join  in your sale deed as confirming party then there's no problem provided the title of the property is otherwise clear. 

If the title is clear you can go ahead with the said transaction. Otherwise don't proceed with the same

1. See if the title of the property is clear and the builder has alloted the said flat vide allotment letter to the allottee you may after verification of complete documents go ahead with deal even without sale agreement if their is proof of the transaction between builder and original allottee though if their is no such proof you should not go ahead.

If there is no sale agreement then in this case you are the first buyer from developer, If still you have any doubt then go for tripartite agreement.

1. Why nomination agreement? Under such circumstances agreement for reallotment is executed by and betweeen the developer, the first allottee and the second allottee.

2. The developer will charge some percentage of the cost towards the cost of cancelling the first allotment and re-allot the flat in favour of the second allottee.

3. Ordinarily, the second allottee pays of the first allottee the amount he has already paid along with the extra premium.

4.Balance amount is paid to the developer and the second allottee steps in to the shoes of the first allottee.

5. copies of all  the earlier agreements are required to be collected since the second allottee substitutes the 1st allottee in the whole deal.

6. Without collecting all the documents in original executed by your 1st allottee, you should not proceed in the matter.

Yes you may face the problem 

The sale agreement is an essential document.

You saw that the bank itself is not approving the loan without the sale agreement document.

therefore you may ask the builder to enter into a sale agreement either with the allottee or with you directly so that you can convince the bank to grant you loan.

1. There is no such thing as "nomination agreement". It is just a word invention by builders to mislead people and income tax authorities.

2. You can safely & legally purchase the said property via a registered Sale Deed, PROVIDED the original allottee and the builder sign as "Consenting & Confirming party", in the Sale Deed.

3. This Deed would be legally sufficient for all futuristic legal purposes such as Sale /Transfer /Gift /Donate /Mortgage /whatever....

Dear Sir,

There are no much issues so far, as you are honouring the previous and present agreements. 

Hello 

Please share the relevant documents for a concrete advise on the said issue. 

Regards 

Without studying relevant documents it would be improper on my part to offer any opinion in the matter. 

- This nomination agreement is with you & allotee and the developer , and is like a triplicate agreement , where you three people has agreed for some terms and conditions . 

- But , for taking loan , a registered Sale agreement is mandatory as the building is under construction , and this agreement should be between you and the developer . 

- Hence, enter into Sale agreement after adjusting booking amount with the allotee or builder , and registered the same from the office of the Registrar. 

- Otherwise, if builder refused to enter into the Sale agreement with you directly , then your Nomination agreement will not suffice to claim the refund etc. 

1. No you should not go for this purchase as there is no previous sale agreement which is mentioned in your nomination agreement.

2. If builder or developer is ready to provide you copy of previous agreement then you can go ahead with purchase.

Better to have an agreement between you, builder and the bank.

Through the bank, get a Tripartite Agreement between above three of you.

If Bank is ready, the above  will work out.