• Information needed for sales deed and transfer of property

I am considering buying an apartment in Hyderabad(India) from a seller. This seller bought the apartment from the builder directly in June 2019 and the building is still under construction (tentative possession by Jan 2022). The seller started paying EMI to Axis bank and has paid half the total amount so far. He now wants to transfer the apartment to me as he is relocating from Hyderabad to Pune. If I have to purchase this apartment there will be a sales deed requirement as well as transfer document plus NOC letter from Axis bank. The seller wants me to pay off his loan at axis bank (half the total amount) so that he can get NOC. The builder is ready to transfer from his name to my name after charging transfer fee. Once the new sale agreement is in my name, I will start paying remaining half of the amount directly to the builder. However I am not sure if the above is sufficient. According to me, there is also a need for MOU document between me and the seller with all terms listed clearly. And what about sales deed ? Do i have to get that made and get him sign it as well ? Last question is whether sales deed has to be registered in hyderabad with me as well as the seller in person at the registrar's office. Please advise how this transfer can be done smoothly ?
Asked 3 years ago in Property Law
Religion: Hindu

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18 Answers

If there is no sale deed between builder and earlier seller then you don't require sake deed. you can enter into tripartite agreement with builder and seller for the same including all the clauses. 

Prashant Nayak
Advocate, Mumbai
31954 Answers
180 Consultations

4.1 on 5.0

Transfer fee has to be paid by seller 

 

2) you have to ask seller to execute agreement for sale or MOU 

 

3) obtain in writing from builder that he has no objections to sale of property 

 

4) also NOC from bank 

 

5) then registered sale deed between you and seller (I presume agreement between builder and seller is registered )

6) get all documents vetted by lawyer 

Ajay Sethi
Advocate, Mumbai
94775 Answers
7544 Consultations

5.0 on 5.0

FOLLOW THIS:

1. Seller should obtain Bank NOC to transfer Loan to you, via a consent application jointly signed by seller & you.

2. AFTER above, Execute REGISTERED "Agreement to Sale" with joint signatures of "Builder, Seller & Yourself" wherein builder & seller sign as "Consenting & Confirming Parties". This Agreement is conditional in terms of payment, possession, ALSO to take Indemnity Bond from Seller to indemnify you against any futuristic legal disputes /claims /losses /etc.... 

3. AFTER above, pay appropriate amount to builder & seller & bank and have residual loan amount agreement in your name.

4. AFTER above, execute Sale Deed, with Builder & yourself to conclude the deal.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

  1.Assignment deed between the seller and the new purchaser has to be executed, with all the terms listed clearly in it.

2. Sale Deed has to be executed by the builder in your favour and the Assignor will sign as one of the witnesses.

3.  The sale deed has to be registered in the jurisdictional Sub Registrar's Office in Hyderabad, where the property is situated.

4.  If you can't come to India for this transaction, you can appoint an Attorney through a registered POA so that the Attorney, on your behalf will represent you in all the offices in India, including the jurisdictional Sub Registrar's Office at Hyderabad.

Shashidhar S. Sastry
Advocate, Bangalore
5125 Answers
314 Consultations

5.0 on 5.0

Yes you have to execute a MOU and sale deed .

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

The seller is not a title holder of the property yet, however since he has entered into a sale agreement,  he has to cancel the sale agreement with the builder,  get NOC from the bank in order to enable you to buy the property. 

For this you may enter into a tripartite agreement with the seller and the builder with the conditions therein facilitating a smooth and legally enforceable purchase of the property. 

Before that obtain a legal opinion about the property to be purchased from your lawyer. 

T Kalaiselvan
Advocate, Vellore
84975 Answers
2204 Consultations

5.0 on 5.0

1. The documentation you are advised to complete so far is fine though there is no harm if you make an additional MOU incorporating all the relevant terms and conditions. 

2. No sale is completed unless and until the sale deed is executed and registered. 

3. The sale deed is to be registered only where the property is situated.  

4. The registration can be done by the parties in person or through their duly constituted Attorney. 

Devajyoti Barman
Advocate, Kolkata
22835 Answers
490 Consultations

5.0 on 5.0

1) First you need to take confirmation letter from Bank and Builder regarding such transaction, and you are going to pay further EMIs to Bank  and Builder that payment details should be mentioned in it. Because after making payment to Bank then bank is going to release NOC, so take confirmation letter that they are ready to transfer the ownership on your name and sale deed registration.

 

2) You have to make Tripartite sale deed agreement with Seller, Builder and you. mention all history in it of previous owner till date. and Payment Schedule, Property Schedule, and when Builder is going to complete the translations etc.

 

3) Sale deed should be registered in the SRO office of the property situated area.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

1. Firstly if no sale deed is signed between the builder and the seller yet, you may enter into a Tri-party agreement with Seller and builder wherein Seller will assign his sale agreement to you and the builder on completion will directly register in your favour. For registration of agreement or sale deed, you need to remain present before Sub-registrar office or you need to appoint a power of attorney to sign and to remain present before sub-registrar on your behalf. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

I think there is no problem in this transfer as the builder is a agree to transfer the property and the original allottee of the property also produce the same the only matter is the loan from axis Bank where the builder and the allottee  is in tripartite agreement.

You have to enter in an agreement between the builder and a lot and based off that you have to make out to axis bank and remaining amount to the allottee in caseyou are looking to get finance for this property is there again you have to enter in tripartite agreement and follow the procedure to pay out the balance amount to axis Bank and any amount outstanding to the allottee

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

- As per law, without Registration of a sale deed , the said seller has no legal right over the property even he has cleared all the dues with the builder, and further cannot sell it to anyone under the Transfer of Property Rights Act.

- If the said seller is having sale deed in his favour from the builder , then he can execute a sale deed with an agreement with bank with you , but if he entered only a sale agreement with the builder for taking loan , then legally he is not owner of the property. 

- Since, you want to purchase the said property from the seller , then you should approach her builder and request him to make changes in the Builder-Buyer Agreement and transfer the ownership rights in your name.

- As per rule the builder after collecting processing charges , can register the property in your name. This processing fee is charged to change the Builder-Buyer Agreement.

- Further after getting the remaining amount from you , if any , the builder can execute Sale deed in your favour , and sellers sign is not mandatory . 

- The registration of property will take place where the property is locating , i.e. Hyderabad .

Mohammed Shahzad
Advocate, Delhi
13260 Answers
198 Consultations

5.0 on 5.0

1. the building is still under construction. The flat is not yet ready. So the sale deed stage has not reached. A sale deed is made of a property which is in existence and not of a property which is under construction

2. in this case there is an agreement for sale between builder and your seller

3. as the seller wants to exit, a deed of assignment or a deed of transfer will have to be made between the seller and you with the builder as a confirming party

4. under this deed of transfer/assignment, you will pay off the loan of the seller's bank plus the seller's profit and the balance will have to be paid by you to the builder as per the construction stage when the builder will raise a demand for the construction linked payment. 

5. if you will be paying off the loan of the bank in full, then it will readily give the NOC

6. under the above transfer deed, you will also pay the transfer fee to the builder at the rate as agreed in the agreement for sale between your seller and builder

7. you can make the above payments simultaneously with the signing and registration of the transfer/assignment deed and thus there is no need for a separate MOU

8. The transfer/assignment deed has to be stamped and registered

Yusuf Rampurawala
Advocate, Mumbai
7516 Answers
79 Consultations

5.0 on 5.0

1. The property has not yet been registered in the name of the first allottee and it is the case of re-allotment only.

 

2. Take a letter from the builder expressing their willingness to re-allot the said flat in your favour cancelling the allotment made in favour of the first allottee on receipt of re-allotment charge.

 

3. Thereafter register an agreement with the 1st allottee detailing the payment terms.

 

4. Obtain a letter from the Bank expressing their willingness to pass on the loan in your name after the agreement is registered and submit a letter to that effect from the 1st allottee to the Bank.

 

5. Thereafter make payment to the 1st allottee as per the agreement and step in to his shoes as the allotte of the flat.

 

7. Collect the re-allotment letter from the Builder and start making payment to him as per the agreement entered in to by the builder and the 1st allottee.

 

8. The sale deed will be registered by the Builder in your favour after he receives the full payment from you and after other formalities in connection with completion of the construction is over.

Krishna Kishore Ganguly
Advocate, Kolkata
27220 Answers
726 Consultations

5.0 on 5.0

Sale deed is must for registration of sale deed. Tripartite agreement will execute where all the terms of sale and payment will mention. Builder will agree to said conditions and execution sale deed with you. This can be done via notorise agreement.

After this only, you should clear bank loan and collect documents mortgage with bank. Keep proof of payment.

Yogendra Singh Rajawat
Advocate, Jaipur
22647 Answers
31 Consultations

4.4 on 5.0

Yes sale deed is required with all the details. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

No need for MOU between you and the seller, but to have smooth flow, it can be done to avoid future complications.

No, seller need not sigh the sale deed.

Yes registration has to be done in Hyderabad, no need for sellers presence, but builder will execute the sale deed.

You can release Public Notice through your Advocate in two news papers i.e., one in vernacular and other one in English Language about the sale & purchase of the property calling for objections if any, thereafter, you can proceed.  This will help you do the transaction smoothly.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

1. You need to pay the amount to seller as builder already got complete consideration from bank loan of seller. 

2. Builder will execute sales deed in your favour if still not registered in favour of seller Otherwise seller will execute sales deed and yes seller will sign the sales deed as well. 

3. Yes both of you need to be present personally or your power of attorney can execute sales deed on your behalf.

 

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

This is a subvention scheme which is a fraud. I don't advise you to invest in such a property.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

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