• Documents for ensuring legal ownership of flat

Dear sir,
I am purchasing a flat for 22 lacs in Ulhasnagar. The owner of flat is not in India and registration will be done when he came but he want to receive full amount and give pocession of flat  and loan was taken by him  in flat and he is saying he cleared the loan so what documents should I take from him to ensure that he will not cheat me and if he will not come in India but without registration still I will be owner of my flat

Asked 2 years ago in Property Law from Ulhasnagar, Maharashtra
Religion: Hindu
1) no payment should be made if flat owner is not willing to execute registered sale deed at time of making payment 

2) if you make full payment and flat owner does not register sale deed in your favour you will have to file suit for specific performance to direct seller to execute rgd sale deed in your favour 

3) ask builder to obtain no dues certificate from society that maintenance has been paid till date 

4) letter from bank that full payment has been made of loan 

5) original documents of the flat 

Ajay Sethi
Advocate, Mumbai
45639 Answers
2681 Consultations

5.0 on 5.0

1) registered sale deed is must to confer clear and marketable title to the flat 

2) you can enter into agreement for sale and make 20 %payment . agreement should provide that time is essence of contract . 

3) agreement should mention that balance 80%would be paid within 3 months time .  on balance sale consideration being made  regd sale deed be executed by seller  and possession delivered to the purchaser 
Ajay Sethi
Advocate, Mumbai
45639 Answers
2681 Consultations

5.0 on 5.0

Any agreement if not signed by him in front of you is not safe to enter into. Have you seen the Original registered documents (sale Deed) of the flat you're interested in purchasing? If the owner has cleared the Bank Loan (as you mentioned in query), then he can atleast show you the original sale deed. Don't pay him any large amount at this stage. Prepare "Agreement to Sale" from a local lawyer mentioning the appropriate terms & conditions and pay him only a nominal amount mentioning "refund" clause.You can pay him the full amount on the day of registration of "Sale Deed". without registration of the "Sale Deed" , duly signed by the previous owner and other legal formalities you'll not be the owner. Also you need NOC from Bank as well "no Dues" from the Housing Society where the flat is located.
Rajni Sinha
Advocate, Mumbai
330 Answers
34 Consultations

4.6 on 5.0

You can enter into a sale agreement for buying the property as per the terms which have been mutually agreed between both the vendor and the buyer.  It is advisable that the sale agreement be registered before the concerned registrar's office. In the sale agreement everything including  the stipulated time for executing sale deed and getting it registered on your name after clearing the bank loan should have a mention without fail. Nothing less than this can give you a relief if there is a litigation in this regard in future.  The other documents are to be verified, vetted and opinion to be sought from a local lawyer before venturing into the purchase.
T Kalaiselvan
Advocate, Vellore
35809 Answers
390 Consultations

5.0 on 5.0

1. If he is not in India then who will execute the sale deed in your favour?

2. Do not rely on his statement that he has repaid the loan. If you purchase the property from him before repayment of the loan in entirety by him the bank will proceed against you to take the possession of the property to auction it to recover the unpaid amount. Carry your due diligence by engaging a lawyer to ascertain whether the mortgage has been cleared and also the chain of title of the property.

3. An agreement to sale can be executed with him if the title is found to be clear and marketable.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Ideally you should stay away from any such transaction if the seller is not available to sign the original documents like Agreement to sell and other MOU's which need to be in place in a transaction like this. 

You need to have in writing the terms of registration , the payment should be made by Demand Draft , the details of the Draft should be mentioned in the Agreement to Sell. If he has cleared the loan ask him for the no dues certificate which the bank will have issue to him or ask him the name of the person who took the loan and the details of the bank such as loan number and the bank and then enquire the status of the loan from the bank directly. 

It should be noted that any agreement made should be signed by the seller in your presence , else does not make sense at all , else later he can very well say  - he has not signed. SO play on records, safe gurd your interest. Best of Luck
Atulay Nehra
Advocate, Noida
1017 Answers
34 Consultations

4.7 on 5.0

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