• Plot registration Issue

Hello All

I am an NRI and currently in USA. I booked a plot in Bangalore in August 2019 during my vacation from a reputed builder and Plot cost is around 90 Lakhs. I paid 10% at the time of booking and returned to US. Registration was suppose to happen in March, but due to Covid19 I could not travel to India. I cannot travel to India till next year due to Travel restriction and Visa ban till Dec 31 2020. The timeframe for me to Travel to India is 8 months.

For now, Only Sale agreement has been completed. Builder said they can wait for the registration till Next year but they want all the pending Money to be released immediately.
I donot have any GPA Executed in India. 

Is it safe to Pay the entire money to Builder and Complete the registration next year ?
Need your Expert Advice on How do I proceed on this.

Thank you
Asked 3 years ago in Property Law
Religion: Hindu

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22 Answers

It is not adviced to pay the entire money to the builder, without any registration as the real estate market is facing extreme slump and various reputed builders are also filing for insolvency recently. So, it's not a safe bet.

You can execute a GPA from abroad and get it apostilled from Indian consulate, which can then be sent to India and the GPA holder can get it registered with the the registrar having jurisdiction.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

- As per Sub-Section 1 of Section 13 of The Real Estate (Regulation and Development Act,), A builder will have to enter into an agreement to Sell with a home buyer, and then accept the booking amount which should not be more than 10%. 

Hence demanding the remaining 90% payment before the delivery of possession and registration of title deed is against the Law.

- Further, if you pay the amount demanded by the said builder against the Act , then you may face problem , specially when the builder could not get Occupancy & Completion Certificates etc from competent authority or delay in handing over the  possession., 

- Further , without getting the said documents , even if you got the possession of the property , then also you cannot get any facilities like electricity , water legally . 

- Being a legal adviser, my suggestion would be, dont go against the rule made under section 13, as i stated above. 


- However , you can purchase this property though a POA/SPA in favour of any relative in India. 


reply as above. 

Mohammed Shahzad
Advocate, Delhi
13095 Answers
195 Consultations

5.0 on 5.0

Execute POA in favour of family member 

 

2) it should be attested before Indian consulate 

 

3) on basis of POA registration can be done in your name 

 

4) don’t pay full consideration to builder now 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

 You can appoint an Agent in India, by executing a POA in U.S.A., who can represent you and execute the sale deed document in your favour. 

Shashidhar S. Sastry
Advocate, Bangalore
5068 Answers
314 Consultations

5.0 on 5.0

Don't go for the advance payment and registration in next year. You make registration on your family members whoever are living in the India. Parents or sibling.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

1. This is most prudent, safe and standard procedure to make part payment at the time of execution of sale agreement and to make remaining payment only at the time of registration of sale deed.

2. Therefore no advocate would advise you to commit this harakiri as asked by the builder. 

3. Due to pandemic the time limit mentioned in the sale agreement would be extended. 

4. Therefore ask him to extend the time till your next visit to India.  This is very much lawful and justifiable under the eye of law. 

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

Present global crisis has brought a lot of economic activities to a grinding halt and is unprecedented. It is advisable to pay the full amount to builder. In view of the pandemic, the ministry of housing and urban affairs advised the state governments and Rera to allow extension of up to nine months to developers for the completion of projects. So if you’re a buyer who is going through with a purchase in an under-construction project, you can expect delays. You can delay the disbursal by up to six months, if you think the situation will improve and you will be able to go ahead with the purchase then.convey your problems to builder through email

Ajay N S
Advocate, Ernakulam
4072 Answers
110 Consultations

5.0 on 5.0

You better get a GPA  deed executed in favor of any close relative in India so that you need not be worried about your money and other formalities. 

You can execute a POA deed in favor of a relative,  at your country,  get it notarized from a local notary public of that country,  send it to the relative back in  India. 

He will get it adjudicated before getting the sale deed registered on your behalf. 

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Yes it's safe due to covid there is the issue

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

You shouldn't pay any money to the builder. Give a power of attorney to one of your trusted friends or relatives and they will execute the registration.

Rahul Mishra
Advocate, Lucknow
14081 Answers
65 Consultations

5.0 on 5.0

Dear sir,

You can pay the entire amount but take the following precautions:

1. Keep all your conversations with the builder / authorised representative documented in the form of e-mails. Make sure that the e-mails are from official handle of the builder. 

2. If you ever happen to speak over phone call, make sure to record the conversation.

3. Mention explicitly that you are paying the amount before registration:

  1. on the demand of the builder;
  2. because you cannot travel due to travel ban;
  3. the amount is towards full and final discharge of your obligations and no further amount/interest/charges shall be claimed by the builder at the time of registration;
  4. your date of arrival in India is uncertain as of now.  
  5. the plot would be registered immediately within a period of 15 days after your arrival in India.    

4. The payment must be made electronically in the bank account of the builder. 

 

All of these will ensure that you have sufficient evidences in your favour in case the builder breaches his obligations.

 

ALTERNATIVELY, you can execute a Power of Attorney in USA in favour of your family member, get it attested at the Indian Consulate/Embassy and send it to India. It would be registered here, and  thereafter your family member can register the plot. 

 

Hope this answer helps.

Best wishes.  

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

5.0 on 5.0

plz give a POA to any trusted person for complying with registration formalities on your behalf

you can sign the sale deed in the USA itself before the Indian Consulate and public notary [followed by Apostillisation]

send the duly signed sale deed and POA to India

your POA holder will make balance payment to builder simultaneously with registration of sale deed 

 

Yusuf Rampurawala
Advocate, Mumbai
7483 Answers
79 Consultations

5.0 on 5.0

No, never pay the entire amount until the registration process is over.

Regards

Swarupananda Neogi
Advocate, Kolkata
2963 Answers
6 Consultations

4.7 on 5.0

Do not pay full amount to builder without sale deed.

Tell builder to wait till you reach india.

Abhilasha Wanmali
Advocate, Nagpur
1021 Answers
1 Consultation

4.8 on 5.0

Dear Sir,

Experience says that you should not pay the complete money and then wait for the registration. You are suggested to just buy the time and pay at the last moment when you come for registration of the property. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

1. See you may pay the entire dues to the builder and may take receipt of the complete payment, further you have already entered into a sale agreement in extension to the same one  Supplementary agreement can be made wherein the present condition of payment and registration can be mentioned the builder can sign and notarise in India and you may sign and get same notarised in USA. The builder can send the signed document to you vide post.  

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Nops, It is advisable to send GPA executed from US, so that sale deed can execute on your behalf. For delay in registration of sale deed, builder will definitely demand late fees.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

don't pay full consideration amount to builder. 

you can execute POA through Indian Consulate to However the Power of Attorney must be signed in the presence of 2 witnesses and notarised by the Indian Consulate/Embassy.

The POA must be registered with the Sub Registrar/SDM Office and once registered it can be used for registration of the property in the buyers name.

Please do ensure that the POA executed is for a specific purpose such  as purchase of the property.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

No it is not safe to release complete consideration to builder due to current market situation because all projects are likely to get delayed due to shortage of labour because of corona crisis.

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1. Get the GPA executed now in favour of anybody in India

 

2. Get the GPA sent to you by your lawyer authorising some one in India to, innter alia,  sign the agreement with the Developer and get your signature put on it attested by the appropriate officer of your local Indian Consulate.

 

3. Thereafter send back the said GPA to your lawyer who will get it stamped by the Collector to make it valid in India.

 

4. Your GPA holder can now take care of the matters and sign documents on your behalf.

 

5. You should make the payment as per the agreement to be signed by your GPA holder and it should be linked with the work done by the Developer.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

Get an registered agreement prepared for full n final payment and registery in future 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Authorize some one from your family i.e., your Father or Mother in India by way of GPA to complete the transaction.

It is not advisable to pay entire sale consideration and take un calculated risk and be at mercy of the Builder.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

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