Hello,
I would not advise you to purchase this property. The title of the same does not seem to be clear from the information provided by you.
Regards
Payment Plan Suggestion for Buying Unregistered 3BHK Flat
Hi Sir/Madam, I have recently enquired to buy an unregistered ready to move-in 3BHK flat from an investor in Bangalore. He said that Builder has given certain units as part of his agreement. Is it safe to buy an unregistered flat? What is the procedure for a new buyer like me, to follow? Also, confused about whom should I pay the token advance? How to make the token advance legally binding? They are saying they can share copies of the documents only when provided with the token advance. If I am taking a loan for 70% of the property value, and the rest 30 % through cheque/rtgs, at what stages of the discussion, should be the payment made and to whom. Not sure if I have to pay the builder or investor(seller) also. Thank you in advance for clearing these doubts.
Asked 2 years ago in Property Law
Religion: Hindu
12 Answers
Deal is fraught with risk. You are not sure to whom the property belongs, how building plan is sanctioned on unregistered land. How CC and OC is issued. Unless documents are checked any payment made is not secured.
Dear Client,
Wherever one cannot register his property and wants to sell it to some other perrson, he can approach his builder and request him to make changes in the Builder- buyer agreement and transfer the ownership rights in the name of the new buyer. The builder levies processing charges and deducts certain fees and allows the new buyer to register the property in his name. This way, the original owner can sell his property to the new buyer even before registration is done. The builder’s consent is required as he holds the property rights till it is registered in the buyer's name.
Dear Mr. Anik, Thank you for the response. It gives clarity on the transfer of rights. But how would the payment work, be to the Builder or Seller, How would the bank/myself decide to whom to pay?
Asked 2 years ago
Here you have to make tripartite agreement as this is under construction property.
First you have to check Agreement to Sell copy from builder to first owner, in that all terms and conditions and payment schedule.
Take in written NOC from builder and do keep inform all details to builder as well.
Before making any payment kindly ask to share copy of Agreement to Sell a d builder's NOC.
You can pay 10 percent booking amount and later as per the stages of progress. If you have a ready possession you can pay every thing provided you get possession
1. You can pay the sale consideration only to the person in whose name the property is registered.
2. You have to pay to the builder and not to the investor.
3. The investor may be a reseller and he wants his share in the deal and let him have it by signing as Consenting Witness, but the sale consideration has to be paid to the builder and not to the investor, since the property title deed is not in the name of investor.
Tripartite agreement has to be entered into between builder ,I seller and you
3) advance has to be paid to seller
3) builder would confirm that he woukd deliver vacant possession of flat within stipulated period
4) it would mention total amount payable by you to seller and no dues certificate from builder
Terms of payment would be mentioned in the tripartite agreement
Dear Client,
regarding the payment of money, you can consult them, seller and builder to whom they want to pay the money and you can proceed according to what they say.
- 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 investor, then you should approach his 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.
- After consulting and approval from the builder , you can pay the advance token amount to the seller i.e. investor.
The seller do not have title or rights in the unregistered flat, hence he cannot execute a registered sale deed in your favor.
If the seller do not have title to the property what is the point in paying the token advance to the seller.
However the concept of token advance for crosscutting the documents by a lawyer from buyer side is not uncommon.
If the seller has a sale agreement on his name, then you may have to enter into a tripartite agreement with the seller and the builder.
The terms and conditions of al such issues would be described in the agreement.
The tripartite agreement between you and the seller along with the builder will contain the terms of payment and how and to who it is payable.
Therefore first of all prepare a tripartite agreement and then proceed as per the conditions of the agreement to make the payments.