• Registered plot vs token money issue

Hi, 6 months ago we bought a plot from a builder in Indore. We already paid in full and the plot is registered in my wife's name. We recently found out that the builder had taken some token money for the same plot of land from another buyer before selling it to us. Now the builder is asking us to re-sell the plot to them. We don't want to sell and we have notified the builder accordingly. Would there be any legal disputes considering the situation?

Thanks.
Asked 11 months ago in Property Law
Religion: Hindu

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21 Answers

Builder has no power to deal with your property. As property is already registered in your wife name so builder cannot deal with property. As such no possibility. Ensure safety of plot by taking precautionary steps. 

Siddharth Srivastava
Advocate, Delhi
1240 Answers

5.0 on 5.0

  • . Once sold and registered the property in the jurisdictional Sub Registrar's Office in favour of your wife extinguished the right of the buyer as owner of the property.
  • If there were to be a registered Sale Agreement for the same property by the person who had paid the token amount prior to the Sale Deed in favour of your wife, then only the problem may arise.
  • Legally, the builder can't revoke the registered sale deed in your wife's name.
  • Get the mutation of the property done in your wife's name in the revenue records based on the registered sale deed.

Shashidhar S. Sastry
Advocate, Bangalore
5108 Answers
314 Consultations

5.0 on 5.0

Details required. Consult with detail. 

Siddharth Srivastava
Advocate, Delhi
1240 Answers

5.0 on 5.0

1. Find out as to whether there was a registered Sale Agreement in favour of the person who had paid token money to the Builder. This can be found out from Encumbrance Certificate for the period prior to the sale deed registration in your wife's name.

2.  Since it's a plot, fence it and also put a Board within the plot, that the plot is registered in your wife's name and she is the absolute owner.

3.   Arrange a Security Guard to oversee security of the plot.

4.   Publish a Public Notice in local language as well in English newspapers regarding the ownership of the property in your wife's name.

Shashidhar S. Sastry
Advocate, Bangalore
5108 Answers
314 Consultations

5.0 on 5.0

1) it is builder headache to settle with earlier buyer 

 

2) registered sale deed confers clear and marketable title to property 

 

3) no need to resell the plot to builder 

Ajay Sethi
Advocate, Mumbai
94690 Answers
7527 Consultations

5.0 on 5.0

 

Inform the builder that you are not interested in selling plot to him 

 

ask him to settle with earlier buyer and give him alternate plot 

Ajay Sethi
Advocate, Mumbai
94690 Answers
7527 Consultations

5.0 on 5.0

- Since, the said plot is in registered in your wife name , then legally she is the owner of the property , and the builder having no right to deal for the same without taking your consent. 

- However, you are suggested to construct some temporary structure over the said plot for showing the possession . 

- Further, you can give a written notice to the builder , that you hare not interested to sell the said plot which is in the legal possession of your wife, and any step against the ownership will attract legal consequences.  

Mohammed Shahzad
Advocate, Delhi
13211 Answers
198 Consultations

5.0 on 5.0

Nops, if builder forces, can file police complaint.

If the land in fenced than erect the fence and gate. Install board with name of owner and plot no.

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

The builder has done a fraud by selling the proeprty to two persons, now to avoid the legal complications he is trying to do this pacification work, you may remain strict to your decision. 

If you have a registered document on your name then you do not have to be worried about this.

T Kalaiselvan
Advocate, Vellore
84890 Answers
2190 Consultations

5.0 on 5.0

If the builder is putting pressure, you may give a complaint agaisnt the builder obviously for the fraud he has committed. 

You may wait and watch the developments.

T Kalaiselvan
Advocate, Vellore
84890 Answers
2190 Consultations

5.0 on 5.0

The builder engaged in fraudulent activities by accepting token money from another buyer for the same plot of land before selling it to you, you may have grounds to file a fraud complaint. 

File a complaint against the builder with the police after consulting some lawyer for the offence of fraud, cheating and criminal breach of trust.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

He can’t resell the same. If he does you can approach consumer court for direct against him 

Prashant Nayak
Advocate, Mumbai
31930 Answers
179 Consultations

4.1 on 5.0

You were advised to initiate suitable legal action without delay. 

The more you delay the more you will be deceived. 

Your imaginary concept and presumptions will not provide legal remedy for the problem that may become big if not nipped in bud.

T Kalaiselvan
Advocate, Vellore
84890 Answers
2190 Consultations

5.0 on 5.0

Once registered sale deed has been executed you have clear and marketable title to plot 

Ajay Sethi
Advocate, Mumbai
94690 Answers
7527 Consultations

5.0 on 5.0

- Since, the plot#85 is under your ownership with the registered sale deed, then you become the absolute owner of this property. 

- Further, the allotment letter is not a document for declaring the ownership , and it needs only to take loan from the bank. 

Mohammed Shahzad
Advocate, Delhi
13211 Answers
198 Consultations

5.0 on 5.0

Since you are the registered owner and land is also registered in your name so you are the registered recorded owner so unless you consent or agree to transfer, nobody can take away your plot. So if builder has dealt with plot and if builder has taken token in respect of your plot or has issued allotment letter in respect of your plot to any third party then you are not bound by the said acts and deeds of builder. You can take few precautionary steps for safety of your plot. Rest, nothing to worry. 

Siddharth Srivastava
Advocate, Delhi
1240 Answers

5.0 on 5.0

Since the plot is registered in your wife's name in the jurisdictional Sub Registrar's Office after paying stamp duty and other miscellaneous expenses, nothing to worry. Moreover I assume that the mutation of the property in the jurisdictional revenue Office has been effected in your wife's name based on the registered sale deed in her favour.

Shashidhar S. Sastry
Advocate, Bangalore
5108 Answers
314 Consultations

5.0 on 5.0

You can seek injunction against him in court for not to sell the same 

Prashant Nayak
Advocate, Mumbai
31930 Answers
179 Consultations

4.1 on 5.0

These cases are very common in various Courts of India and Supreme Court of India. I can understand your concern in this regard. As you know that once a home purchase deal is finalised between a buyer and a seller, a formal process is initiated to conclude it legally. This starts with the buyer paying the seller a small portion of the transaction value, to show his genuine intentions. This payment, in Indian real estate parlance, is commonly known as the ‘token amount’.

There are bright chances of legal disputes in your situation. However, you can send a legal notice to the builder to comply with the terms you agreed upon and to claim compensation. Any of the parties cannot back off from settled terms of the contract. The courts have unqualified jurisdiction to award compensation in case of breach of contract, but the compensation must be reasonable. The aggrieved party is entitled to receive compensation from the defaulting party. 

All legal action can only be taken once notice has been served upon the entity or individual you wish to take to court. It is this process that legalises bringing a matter to court. The intimation sent is known as a legal draft. A legal notice is, therefore, a formal communication to a person or an entity, informing the other party of your intention to undertake legal proceedings against them.

This notice, when sent, conveys your intention before the legal proceedings and thus, makes the party aware of your grievance. Many times, a legal notice served will bring the other party to heel, and the problem is often resolved out of court, well before it goes to trial, with fruitful discussions on both sides.

However, if the other party is still unheeding the grievance, one can always start the court proceedings after the prescribed interval as stated by law. The bottom line is that legal notice can serve as a point of reference to embark upon negotiations between two parties and save both the time, effort, and money that is usually spent in court cases.

You may contact my secretary to connect with me for clarification.

 

Gopal Verma
Advocate on Record
Supreme Court of India

Shri Gopal Verma
Advocate, New Delhi
371 Answers
10 Consultations

4.0 on 5.0

Allotment letter has no value. Sale deed is enough

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

Dear client,  

Based on the information you provided, it appears that the builder may have engaged in fraudulent or unethical behavior by accepting token money for the same plot of land from another buyer before selling it to you. This raises concerns about the builder's actions and potentially indicates a breach of trust.

In this situation, there could be potential legal disputes between you, the other buyer, and the builder. The specific legal remedies available to you may depend on the laws and regulations governing property transactions in your jurisdiction, as well as the terms and conditions of your agreement with the builder.

Here are some precautionary steps you may consider taking:

Gather and organize all relevant documents: Collect and secure all documents related to your transaction, such as the sales deed, payment receipts, correspondence with the builder, and any other supporting evidence. These documents will be important if legal action becomes necessary.

Consult with a property lawyer: Seek advice from a qualified property lawyer in your jurisdiction who can review your documents, understand the specific laws that apply to your case, and provide you with legal guidance tailored to your situation.

Communicate with the builder in writing: It's essential to maintain clear and documented communication with the builder. Send a written notice to the builder, clearly stating your position that you do not wish to sell the plot and reminding them of your legal rights as the registered owner.

Consider filing a complaint: If you believe that the builder has engaged in fraudulent or unethical practices, you may consider filing a complaint with the appropriate regulatory authorities or consumer protection agencies in your jurisdiction. A legal professional can advise you on the best course of action in this regard.

Explore negotiation or mediation: Depending on the circumstances, you may wish to explore the possibility of resolving the dispute through negotiation or mediation. This could involve discussions with the other buyer, the builder, or both, facilitated by a neutral third party. However, the feasibility of this option will depend on the willingness of all parties involved to engage in such a process.

Remember, the information provided here is general in nature, and it's important to consult with a qualified property lawyer who can provide you with advice tailored to your specific situation. They will be able to assess the details of your case and guide you through the legal process, if necessary.

Anik Miu
Advocate, Bangalore
8853 Answers
110 Consultations

4.7 on 5.0

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