Question about payment for resale flat
I am purchasing a flat in Dombivali (E) for total consideration of Rs 32 lakhs (first time buyer). Out of this amount, I have 20 lakhs ready with me, but remaining 12 lakhs I have to get from a builder where I currently have booking in under construction project. I want to play safe and would like to cancel my booking ONLY if this resale deal works out.
As per my limited knowledge, I see following two options –
1) Give 20 lakhs to seller now and execute Agreement of Sale. Once Agreement of Sale is signed, I will cancel my booking and will go for registration when I am ready to pay remaining 12 lakhs.
(So 20 lakhs payment by cheque now and 12 lakhs cash at the time of registration)
2) Give 20 lakhs to seller now and convince seller to go for registration. At the time of registration, I will give Postdated check of 12 lakhs (+3 months). That money I can pay after cancellation of my booking.
(So 8 lakhs by cheque + 12 cash now, then 12 lakhs by cheque after registration)
Please help with following –
1) Which one of above is most safe and suitable deal for me?
2) Seller travels out of Mumbai most of the time and is infamous for carelessness in such matters. So, If I go for #1, then can I have some recourse available with me with using Sale Agreement? I will have only agreement, but no money and no flat possession at this point.
3) If I go for #2, then I will be paying cash upfront, can I lose this money in case the post dated check is dishonored for any reason (I do not expect this to happen, but just in case)
4) Is #2 a normal / common way of dealing? I am wondering what are the odds that this or any other seller would agree for such deal?
5) For #2, is it OK if I have to negotiate that I will take possession of flat only after realization of Post dated cheque OR this is a bad idea?
6) Any other 3rd option, I can go for this dealing in my given situation.
Will appreciate your help and expertise in answering above questions.
Asked 8 months ago in Property Law from Dombivli, Maharashtra
1. The second option I find most suitable.
2. better avoid 1st option.
5.no , not at all.
6. Go with 2nd option
1) most of builders are facing liquidity crunch
2) there is no guarantee that if you cancel agreement builder will refund your Rs 12,lakhs
3) don't enter into agreement with seller unless you have Rs 42 lakhs in hand
4) no need to enter into agreement of sale
5) don't make any cash payment
6) just enter into sale deed pay Rs 32 lakhs by demand draft and take possession of flat
If you don't have funds get pre approved loan sanctioned from bank
2) then disbursement of loan won't take time
3) you should have back up plan in case builder does not refund your money
Can you please elaborate on questions #3 and #5,
Ques #3, What can happen in case the post dated cheque is dishonored? Will it cancel Sale deed? If yes then seller can forfeit the black money has there is no account of it
Ques #5, Just to make sure that in your opinion, agreeing to take possession after 3 months of registration (after clearing of post dated cheque) is not a bad idea right? Can seller stall possession even after cheque is realized?
Asked 8 months ago
1) agreement for sale would contain clause that provide for dishonour of cheque ,. The seller would insistthat in case cheque is dishonoured agreement would stand cancelled
2) if full payment is made by you seller is bound to deliver possession . In case seller fails to deliver possession you have to file suit for specific performance
It is unheard of that sellers would execute the sale deed on part payment of sale consideration. Be that as it may, this can be done. However, if any of your post dated cheques bounces then the seller can launch your prosecution for cheque bounce. Further, your title will remain defective till the last post dated cheque is honoured by the bank. The seller will also be free to file a lawsuit for cancellation of sale deed with compensation in the event that the cheques are dishonoured. The seller may also refuse to deliver the possession in future. So this is fraught with multiple risks.