1) you should request for copy of DD in advance
2) it should be from reputed nationalised bank or private sector bank
3) verify from bank whether nay such DD has been issued
4) no harm in DD being paid at time of registration of sale deed
DD at the time of registration
Hi, i am planning to sale my flat and i got a buyer for the amount that i expected... He just payed a token advance of 1 Lakh (1.7%) of the total agreed amount and ensuring to pay total amount by DD at the time of registration before the registrar... He promised to share the DD copy before the registration date for verification... Is it wise to proceed with this kind of deal? P.S.. i want to sell this flat as soon as possible and hence agreed to this initially but now having second thoughts now.. (No Sale of agreement has been made yet and plan was to go for registration directly) Please advise accordingly
Asked 3 years ago in Property Law
Religion: Other
24 Answers
This deal looks risky. You should don't get the sale deed registered, until and unless the entire DD amount has been received in your account. Once, that is done, then you can proceed to get the deed registered.
Once, you can get an agreement to sell executed between you and the buyer elucidating the terms and conditions of sale and execution of sale deed.
Yes, its ok to proceed with it and mention all details of payment in it schedule of payment and DD details and do mention in the sale deed agreement that "This sale deed is valid only subject to realization the cheque/DD".
And handover possession after the the DD amount transferred in your account.
1. Normally it's 10% advance at the time of executing the Agreement of Sale.
2. The person may be a reseller and he has paid you 1.7% of the consideration and will lookout for a prospective buyer, who may agree for a higher rate for the property than your rate and the difference amount may be his profit.
3. Or he may be a genuine buyer and he may try for Bank Loan for the total cost and when once he gets the approval from the Bank, he may pay you the entire balance consideration, which he would have taken as loan from bank.
There is no problem in this deal as the DD no. should be the part of registration detail and original DD should be received.
The DD is almost like cash payment.
However you can add a line in the sale deed stating that the confirmation of registration would be subject to encashment of the DD.
This would ensure a safe passage.
1. See on the day of registration before signing the sale deed you may take the demand draft after demand draft is received by you and verified then only proceed with the signature and registration procedure.
Ask him to issue cheque and if it got bounced you can recover it by filing a case under section 138 of the NI ACT.
HOPE THIS HELPS.
REGARDS
1. Yes. Since DD is as good as cash there is nothing wrong in accepting DD at the time of registration of the sale deed.
2. However at the of registration of the sale deed fo take confirmation from the Bank to determine whether the DD is still valid or is cancelled
Dear Sir,
You are not required to worry and the sale will be valid and amount can be obtained by way of DD without any issues
It's better to transfer the money online before registration in your Account rather giving DD which would be again sent for clearing.
Well most of the deals are made final in this manner only. Agreement to sell is made where you want to sell or buy after some time.
He should pay the amount immediately at the time of registration make sure this happens.
You can execute agreement to sale take a cheque and agree for registration once its cleared. Even the present DD arrangement can be made in agreement to sale and proceed along with DD.
1. it is always a good practice to execute the agreement to sell so that the terms of the sale can be reduced into writing,
2. you can still enter into an agreement to sell keeping the initial amount as previous (1 lakh), however, in routine the initial amounts use to be 10% of the agreed amount,
3. if the deal is lucrative, you can proceed but better to execute the agreement to sell mentioning the terms of the sale to avoid any complications at the time of sale deed registration,
When you go for registration, before you sign, ask the buyer to handover the DD to you
Only then sign and proceed for registration
Hello,
- You need to make an Agreement to sell and clearly state the terms and conditions that will bind the buyer. This will bring about liabilities upon him and you can reduce the risk on your part as a seller.
- The agreement to sell does not have to be a registered as you are about the register the agreement for sale immediately.
- There's no risk in proceeding with the sale if the precautions are taken.
Get a sale agreement prepared and take DD in front of land revenue officer at the time of registration. Its ok...you can proceed
1. If he gives you the photocopy of the said DD beforehand, you can go and get the genuineness of the said DD from the issuing Bank.
2. If the said DD is found to be genuinely issued by the said Bank, then I find no reason for you not to accept the proposal of paying you at the time of registration of the flat.
3. Make sure to mention the details of the DD in the page of the Sale Deed where the consideration details is shown.
Dear Querist
you may proceed with the deal but you should mention the details of the DD in the Sale Deed itself and in case there will be any hurdle or that person is not ready to pay the DD amount then you may challenge the sale deed before the civil court and that transaction can be declared as void.
- Yes, you can proceed for selling the flat , as DD having its face value on presentation, however before registration you should verified the said DD from the respective bank .
- Sale of agreement is not mandatory , can execute Sale Deed directly after receiving the full and final sale amount from the buyer.
The details of the DD has to be captured in the Sale Deed and let the original be handed over to you before signing the Sale Deed.
It is acceptable mode.
1. IF you have decided not to sell your Flat, THEN you can simply return the Money to the buyer party and take a letter attested by two witnesses, declaring that buyer shall no legal claim or objection in property in future.
2. Since Agreement of Sale is not executed, there is no specific Privity of Contract between Seller & Buyer and Seller is legally entitled to revoke his decision to sell or increase the price etc.... This would not have been possible if an Agreement to Sale was earlier executed with relevant terms & conditions.
Yes it is fair to go ahead with recieving consideration by way of DD at time of registration.
Please take Xerox copy of DD before you go for registration so as you can verify whether the DD is actually prepared or not..??
Once you get the copy of the DD, then you can also call the concerned bank and verify the same.
