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  • Regd assignment deed of flat constructed on builder land - role of seller in later registration

Hello

A builder, a seller and a buyer have executed and registered an Assignment Deed for a flat under construction on land that was acquired by builder, transferring total rights in the seller-builder executed Land & Construction agreements from seller to buyer.

Is there any subsequent role of / presence needed by the seller in later registration of the flat done between builder and buyer?

If so, what is basis of the seller’s role, given seller has No Right to either land or construct and deed to that effect is registered?

Thanks 
Bhartendu
Asked 2 years ago in Property Law
Religion: Hindu

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8 Answers

Yes, the seller may still have a role to play in the later registration of the flat between the builder and the buyer, even though the seller has no right to the land or the construction. This is because the seller is the original party to the land and construction agreements with the builder, and the assignment deed only transfers the rights under those agreements to the buyer. The builder will still need the seller's consent to register the flat in the name of the buyer, and the seller may also be required to sign the sale deed as a confirming party.

The basis of the seller's role is that the seller is still the legal owner of the flat until the sale deed is registered. The assignment deed does not transfer legal ownership of the flat to the buyer, it only transfers the rights under the land and construction agreements. The sale deed is the document that actually transfers legal ownership of the flat from the seller to the buyer.

Akshit Aggarwal
Advocate, Delhi
52 Answers

The seller can sign the document as consenting witness since there was a sale agreement already entered by him with the builder and now this execution of sale deed would be based on a tripartite agreement.

Therefore the seller may have to be present to sign in the capacity of consenting witness while the builder is executing the sale deed before the registrar concerned. 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

The building is under construction hence there is no chance for the builder to have transferred the property in favor of the seller by a registered sale deed, therefore the seller is not having title or interests in the property neither he is an owner, therefore the builder has to execute a registered sale deed in favor of the current purchaser.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Yes if any other fresh deed is registered then the presence is required otherwise not

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

What about transfer charges levied by builder on sale of flat 

 

seller has to bear the transfer charges 

 

seller also ought to have obtained no dues certificate from builder 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

 

Seller is not legal owner of flat 

 

registered assignment deed is valid 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

- An assignment deed is a conditional sale, and it is treated merely as licence , and the property can be revert back to the assignor as per contract , and the transfer of property only by execution of Sale deed gives full right to further sell the property . 

- Yes, the presence of seller/assignor is needed at the time of registration of flat done between the builder and the buyer.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

An assignment deed can be viewed as a conditional sale arrangement, essentially functioning as a license rather than a definitive property transfer. Under this agreement, the property can revert back to the assignor in accordance with the terms specified in the contract. It's important to note that the complete and unrestricted right to sell the property can only be obtained through the execution of a sale deed. In practical terms, the presence of the seller or assignor is required during the registration process when a flat transaction occurs between the builder and the buyer. This ensures that all parties involved are legally bound by the terms and conditions outlined in the assignment deed, safeguarding the interests of both the buyer and the seller.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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