• Flat settlement

Sir, I have purchased a flat in 2010, later came to know that it had already been registered in 2008 to some one else by the builder. Meanwhile the builder died and new builder took over. The new builder spoke to the first owner for an settlement to cancel the sale deed, same was agreed for registration amount plus some extra amount. I had paid the entire payment of the flat and is ready for occupation, now when I ask the builder about the settlement issue he is deferring/ postponing saying lack of funds and the land owners are not willing to pay the extra amount for the flat settlement etc etc. As I have the burden of EMI's to be paid to bank of Baroda taken against the same flat,  I spoke to the 1st owner and decided to pay the settlement amount (as agreed earlier)and get the sale deed cancelled  for which he agreed. same has been conveyed to builder but no response. The original sale deed of the first owner is with the apartment's counsel as the first owner had only paid the registration amount and stopped paying further.  I need advice on the below steps which I intend to take in sequence.
1. First I will pay the amount and get the sale deed cancelled. Shall I pay by check or cash.I also intend to take a note on stamp paper that he has 
no claim on the above property, do I need to mention the settlement amount on the note or only the registration amount leaving the extra amount.
2. Second important one, what measures I need to take to get back the settlement amount from the builder. I am skeptical about the builder paying me back my amount. Please advice.
Asked 1 year ago in Property Law from Visakhapatnam, Andhra Pradesh
Religion: Muslim
1) deed of cancellation has to be made between builder and first owner 

2) all payments should be by cheque only 

3) take possession of flat from the builder 

4) builder from whom you purchased flat is dead . why will new builder reimburse you for amounts paid by you to first owner ? 
Ajay Sethi
Advocate, Mumbai
23318 Answers
1220 Consultations
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1. First I will pay the amount and get the sale deed cancelled. Shall I pay by check or cash.I also intend to take a note on stamp paper that he has 
no claim on the above property, do I need to mention the settlement amount on the note or only the registration amount leaving the extra amount.?
How do you think this is going to solve your problem.  You are not buying the property from the first owner, it is the subsequent builder who is selling the property to you, so any cancellation by the so called first owner may not benefit you, instead it may benefit the builder who seems to be playing fraud upon you. Instead you can enter into a sort of tripartite agreement with the builder, first owner and yourself wherein you can clearly mention the money transaction you make and the mode of payment to the builder or the first owner.  Any such deed to be drafted through an efficient and skilled lawyer only and not on the words of the builder or the first owner or with your own prudence because this may create a lacuna which may not be able to be rectified at a later stage. 


2. Second important one, what measures I need to take to get back the settlement amount from the builder. I am skeptical about the builder paying me back my amount. Please advice.

If the builder is ready to give back your amount, you may take it by case or current date cheque and can postpone signing any papers i this regard till the cheque payment is confirmed. Yo can ask him to return the entire amount at one shot or maximum by two installments and you would give him a release letter only after the discharge of full repayment. 
T Kalaiselvan
Advocate, Vellore
14122 Answers
127 Consultations
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1) you can hold the new builder liable as he has taken over the liabilities of the old builder 

2) move consumer firm against the builder to seek refund of settlement amount paid to the first owner 
Ajay Sethi
Advocate, Mumbai
23318 Answers
1220 Consultations
5.0 on 5.0
The information you have added subsequently makes things clear, so while posting a query it becomes your duty to furnish correct details so that you get proper opinion and next suggestion.  
The fraud what I apprehended was  that the builder sold the property to two people without intimating each other about this hence any transaction with the previous buyer would tantamount to hidden fraudulent intentions in collusion with the builder. But now your contents "I am paying on behalf of him so I can recover my amount." clearly indicates that the transaction is official involving all concerned, that way you can sigh a relief if you can manage the adverse situation, if any that may arise in the future in this regard. 
Now to your query to me,  of the existing two registered sale deeds, if one is cancelled with convincing reasons recited in the cancellation deed for cancelling the same, the other one automatically stands good and can be considered legally valid title deed. 
T Kalaiselvan
Advocate, Vellore
14122 Answers
127 Consultations
5.0 on 5.0

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