I am buying an unregistered resale property from a seller by getting into the tripartite assignment agreement stating the transfer of ownership from the seller to buyer (me). Builder will also sign the agreement accepting the transfer of ownership in their records. In this scenario, I will make a bank transfer to the seller for 95L and property will be registered between me and builder. Questions Is assignment agreement legally binding? When should I make the payment to seller? Thanks, Harneet
yes, the assignment agreement is legally binding, if all three of you, namely the builder seller and you Harneet, fulfill the criteria of section 10 Indian Contract Act.
you can make the payment to the seller once the agreement is signed and attested.
Adv. Ritvik Krishna
Deed of assignment is binding upon parties
2) you should make payment to seller at time of registration of agreement
Do we have escrow services available via banks to facilitate property transactions?
Banks do provide escrow services for property transactions
1. Does the seller has valid title of the property to pass on the same to you? It shall have to checked up at first.
2. Registered Assignment Agreement will be binding on the parties.
3. handover the DD at the office of the Registrar at the time of registration of the sale deed in your favour.
4. Make the owner of the property be the consenting party to the said sale deed to be registered.
1. You can talk to the Bank for opening the Escrow Account but you shall have to make sure as to who will operate it in case the deal falls flat.
2. Usually Escrow Accounts are opened as per Court's direction.
Dear sir,
1. this agreement is totally legal and shall be binding on the parties.
2. Make the payment during the registration of your sale deed.
3. yes, banks do provide services for opening escrow account. Kindly, make sure that who will be operating the escrow account in case the deal gets cancelled.
Thank you
- It means that you are purchasing the property from a person who booked the property from the said builder .
- As per law, without Registration a buyer 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.
- Since, you want to purchase the said property from the said person , 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.
- Since, you have already entered into tripartite agreement with them, then the builder can transfer the property in your name by a registered deed.
- The said assignment agreement is legally bind you three .
You can get the tripartite agreement registered to make it valid and enforceable in law in case of any dispute in future in this regard.
You can settle the consideration amount after completion of all formalities, because the seller is basically devoid of title and he cannot become a seller to execute the registered sale deed in your favor, therefore you may ask the builder to execute the registered sale deed in your name after which you can make the final payment to the seller or as per the conditions of the tripartite agreement.
No such services available for individual purchases.
You may issue a post date cheque so that the cheque can be encashed after completion of registration of the sale deed in your favor.