Should we go ahead with this house sale payment plan?
We stay at Hindmotor near Kolkata, West Bengal. We are planning to sale our 1632 sq feet 2-storeyed house with 3 kattah 12 chhatak land. A promoter offered Rs. 35 Lakhs for it. He is proposing to pay Rs. 10 Lakhs in advance and we need to leave the house. He will pay the balance Rs. 25 Lakhs in 5 installments (Rs. 5 Lakhs in each quarter). Till the full payment is done, he has also proposed to pay us Rs. 5,000 per month as rent.
Should we go ahead with this payment plan? If we go ahead with it, what are the terms and precautions we should take while preparing the sale agreement?
Can we face any fraud from the promoter or is there any legal option that we can take if he stop paying installment or failed to pay installment in proper time.
We need your valuable advice in this regard. Please advice.
Asked in Property Law from Hindmotor, West Bengal
1. Do get the agreement vetted/checked by a lawyer. To safeguard your interest the whole agreement needs to be prepared or checked keeping various factors in mind.
2. A default clause much be mentioned in the agreement which will keep the developer within bounds.
3. To protect your interest in case of default of payment do incorporate further penal clause.
4. Without taking help of a lawyer do not sign any agreement.
1)you cannot deliver vacant possession merely on receipt of rs 10 lakhs as advance .
2) possession should be handed over on receipt of full payment of Rs 35 lakhs
3)when advance payment is received you can enter into agreement for sale .
4) registered sale deed should be entered into on receipt of full payment
5) time should be essence of contract
6)get it drafted by local lawyer
do not give possession untill you receive full amount
Advocate, New Delhi
1. Possession should not be delivered unless the entire agreed amount is paid. If possession is to be delivered before payment of the amount in full then adequate provisions for security should be made so that promoter does not take liberty to back out from the agreement.
2. Engage a lawyer and get the agreement drawn by him so that the promoter is left with no escape route in case he fails to honour his word.
3. You should remember that after the agreement is made your rights to bring legal action against him for his default will flow out of the agreement itself. So do not take any chance. Get the agreement drafted by a lawyer to overcome all the expected and unexpected hassles which might arise.
For heaven sake do not give possession for a mere 10 lakhs. You can enter into agreement of sale now by accepting Rs.10 lakhs as advance and also mention 3 months time or on mutually agreed time for registering the property. When you receive the entire sale consideration of Rs.35 Lakhs go for registration and then give the possession to the buyer. Take the help of a local lawyer and by the by there are so many lawyers from Kolkata in the panel of Kanoon.com and you can contact any one of them to get your work done. Let there be a penal clause for default payment and for enforcing specific performance of the contract.
You should not proceed with terms of this agreement, after getting full payment of Rs.35 lakhs you can enter into an agreement.
1. This is not very usual proposal,
2. Is he going to construct a multistoried upon your land?
3. If you are not given any flat in the said multistoried, then you need to be paid the entire sale proceed before you hand over possession of your property,
4. Enter in to an agreement with him detailing all clauses but mention therein that possession will be given only on receipt of entire amount,
5. There are 'n' nos. of cases where buyers have taken possession with a promise to pay within a specific period but has refused to pay citing various frivolous ground and has gone to Court for a lengthy legal battle,
6. Such matters should be discussed with a lawyer having no connection with the builder to have proper advice.
Thank you very much to all of you for all your precious advice. I understand that I should give possession after full payment only and I've to go with a draft by a lawyer to safeguard my interest by all means. I had a talk with the promoter and he said that entire thing will be under my name only until he paid full amount. By that time, I need to give him "power of attorney" to construct multi-storied on my land. Is this clause ok?
He said that he will draft a agreement keeping everything in the agreement and asked me to verify with a lawyer. I'm waiting for that only.
To Mr. Krishna Kishore Ganguly
Yes Sir, he is going to construct a multi-storied on my land after breaking my house. I'm not willing to take any flat in the said multistoried.
Thanks again everyone.
Asked 3 years ago
Thank you for appreciation.
Act strictly on the advice of your lawyer.
thanks for your appreciation . dont give any POA unless you receive full consideration .it appears builder does not want to block his funds in the project . the builder will leave you dangling in thin air once you vacate possession and give POA
Thank you everyone for guiding me. Builder is making a draft from his lawyer. Once I get it, I will post the clauses in a new thread for your kind advise.
Asked 3 years ago
Show the clauses to your lawyer rather than showing them to us.
please contact a local lawyer . on payment of his consultation fees get draft vetted by him