• Agreement to sub-lease vs registered tripartite agreement

I have an agreement to sub-lease in place for a plot from a private builder. It is on an stamp paper with builder's signature and two witness.

I have already paid all payments except last final payment.

Builder has not finished all work but is promising to do it. They are insisting that we should now have our registered tripartite agreement (I need to take possession and also pay final payment).

Issues
1) Builder has not finished all their work according to current agreement to sub-lease. This agreement also says that before taking possession I should ensure all their work has done and after taking possession I will not be able to raise any question.
2) New tripartite agreement says that plot is as on where is basis and I will have to pay extra for any future developments.
3) New tripartite agreement also has various clauses which are not acceptable to me and were not present in our current agreement to sub-lease.

What builder is saying
1) Their tripartite agreement is approved by Greater Noida Authority and it is not possible to make any changes in it as this is a standard format.
2) For my concerns (issues 1-3) they will issue an addendum to our current agreement to sub-lease which will explicitly answer my concerns.
3) I said to builder that tripartite agreement which will happen will a current date will supersede any old agreements but they said these are two separate agreements and tripartite agreement is just for passing lease rights and agreement to sub-lease is actual agreements with all commercial terms.

My questions to you
1) Is builder sounding correct and true?
1a) Is it not possible to make changes in tripartite agreement at first place?
1b) Will such addendum on current agreement to sub-lease will be enough? Will it supersede registered tripartite agreement?
2) What is your opinion and recommendation?
Asked 8 years ago in Property Law
Religion: Hindu

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9 Answers

1. The original agreement and the proposed tripartite agreement have to be perused threadbare to form an opinion on the conflict between the two and how far it can be reconciled by introducing an addendum. Be that as it may, if he is a private builder then the agreement can always be changed.

2. Show the original and proposed agreement to get a comprehensive legal opinion. Without perusing the two agreements it is impossible to form an opinion.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) check the antecedents of builder . whether he has completed works on other projects

2) legally you should not make any further payment till work is completed as per your sub lease agreement

3) once tripartitie agreement is executed it would supersede earlier agreements

4) if builder is willing to execute addendum it should protect your interests

5) better get agreement vetted by local lawyer before proceeding further

Ajay Sethi
Advocate, Mumbai
94713 Answers
7530 Consultations

5.0 on 5.0

1. The civic authorities, if they permit sub-lease in an agreement, prohibit alteration of the original agreement. So the builder could be right.

2. As I said before, the proposed addendum and the original agreement are to be perused to know the effect of former on the latter.

3. At this stage engage a lawyer and provide him the proposed addendum and a copy of the earlier agreement to get comprehensive advice.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) File RTI application with NDA as to whether any changes can be made in tripartite agreement

2) regd tripartite agreement will supersede old agreement

3) get agreement vetted by local lawyer

Ajay Sethi
Advocate, Mumbai
94713 Answers
7530 Consultations

5.0 on 5.0

My questions to you

1) Is builder sounding correct and true?

The builder's previous history and performances are to be verified to assess his genuineness. In fact the contents of the agreement papers are to be seen to form an opinion about it.

1a) Is it not possible to make changes in tripartite agreement at first place?

Why not, it is after all an agreement designed for convenience as per law.

1b) Will such addendum on current agreement to sub-lease will be enough? Will it supersede registered tripartite agreement?

The registered tripartite agreement and proposed addendum are to be seen to confirm whether this addendum will be able to resolve the conflicting issues in the original agreement.

2) What is your opinion and recommendation?

It is always better to produce all the relevant papers before a local expert lawyer who shall, after verification and proper vetting of all documents, give a clear cut opinion about the veracity of this.

T Kalaiselvan
Advocate, Vellore
84914 Answers
2195 Consultations

5.0 on 5.0

1) Builder is saying that they have a standard tripartite agreement that is approved by Greater Noida Development Authority so no amendment can be done in same. Note that this agreement is not yet signed by us, they have just sent a draft to me. Are they correct by saying that they cannot make alterations in tripartite agreement before we sign?

The builder may be right mentioning that the tripartite agreement formatted by the Noida authority cannot be amended, however you can very well go through the contents and sign if it conforms your requirement

2) If they issue an addendum to my earlier agreement to sub-lease and we go for registered tripartite agreement then will addendum done to old agreement supersede new registered tripartite agreement or registered tripartite agreement always have precedence over older agreements or some people have also said that after registered tripartite agreement old agreements are not even valid.

New registered tripartite agreement shall supersede any previous agreement, so what you heard is right.

3) What is safest option for me to protect my rights?

Get a proper legal opinion from a local expert lawyer by producing all the documents and relevant papers before entering into the agreement.

T Kalaiselvan
Advocate, Vellore
84914 Answers
2195 Consultations

5.0 on 5.0

1) there are number of lawyers on this website from Delhi

2) enter into third agreement only on basis of legal advice . It should be stamped and regd

Ajay Sethi
Advocate, Mumbai
94713 Answers
7530 Consultations

5.0 on 5.0

With language of this tripartite agreement, I am almost certain that this is not authority's standard agreement template. Builder is saying that they have to get this agreement approved from authority before they could get anyone's registry. (I am not even sure if they are correct here).

About this you can obtain information from NDA through RTI act too instead of making wild guesses.

) I am worried that tripartite agreement will supersede any kind addendum to original agreement or any different agreement so even if they write anything on addendum my problem (2) won't be fixed by it.

2) Is there any way to work it around? For e.g. if we do a third agreement after our tripartite agreement and referring to our original agreement and tripartite agreement, will this third agreement supersede registered tripartite agreement?

First of all the builder says that it is mandatory to obtain approval from authority by executing a tripartite agreement. If that is the case how do you think that you can enter into a third agreement after finalising the tripartite agreement? If the builder says that he can make an addendum to the original agreement, how will it be enforceable because upon drawing a new tripartite agreement which supersedes the previous agreement, the previous agreement becomes infructuous and no addendum can be added to an infructuous agreement. Instead of addendum, whether the builder is agreeing to make good the promised facilities and is ready to enter into an agreement to that aspect alone, if so, get it executed and registered separately.

3) What is correct way of getting this third agreement ready? I mean are two witness enough or do I also need to get a witness from an advocate or get it notarized or something?

Get it registered so that validity is added to it in the event of builder failing to keep his promise at a later stage.

I am finding it very difficult to find an good advocate that does not charge a bomb. I am a law student myself but have no real experience and work only on labour/hr related laws.

You can prepare a draft of the proposed agreement and get it verified from a good lawyer in the local or from any of the lawyer of this forum on private consultations.

T Kalaiselvan
Advocate, Vellore
84914 Answers
2195 Consultations

5.0 on 5.0

1. Buyer beware is the basic principle when it comes to purchasing the property. When you purchase a property all the liabilities with respect thereto stand transferred to you except if otherwise provided in the sale agreement or sale deed.

2. An addendum can be issued to clarify what is written in the agreement. It can also preserve any of the rights which is not expressly laid down in the agreement. However, in case of a conflict between an addendum and agreement it is the latter which will survive. This is why I advised you to get the addendum drafted from a lawyer after perusal of the agreement.

3. You can engage any lawyer from this portal.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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