MoU from builder for redevelopment flat
My father's inherited property is currently going for redevelopment in Mumbai. We would like to go for a buy-back to which the builder agrees.
However, Builder is offering an MoU with a relative/investor that he will pay a certain amount upfront and the rest in 8 months with a clause that money be returned if the MoU is cancelled. Furthermore he requests society not be informed.
I feel this does not protect my interest. From a legal point of view in order to guarantee that the agreed sum is paid with the option of legal recourse if not in 8 months, what would be the best way to proceed?
Asked 2 years ago in Property Law from Germany
prepare a deed containing all the terms and conditions. must include indemnity clause, rate of interest in default of payment, what are the liability beared by both parties, when liabilities will said to be discharged etc. but you should explain some more facts for better advice .
1) it is necessary to peruse MOU drafted by builder to advice
2) buy back should be by builder only and fuull consideration paid upfront
3) if investor does not pay balance within 8 months you will have to keep running around the court to recover your money
4) even if investor is buying the flat full consideration should be paid now
1. You should have an agreement executed and registered before the registrar keeping a clause therein stipulating that 20% of the advance paid by the prospective buyer will be forfeited if the buyer fails to pay you the balance amount within 8 months,
2. You should also mention in the said agreement that after returning the advance amount after 10 months duly deducting the said forfeited amount,you shall have the right and liberty to sell your property to any other party,
3. The Court which shall have jurisdiction to hear any dispute in connection with the said agreement should also be mentioned in the agreement.
Hi, It is better you can take the post dated cheques and also entered into MOU with the builder so if the builder fail to pay the amount then you can get back your money through cheques.
The developer shall be liable to pay the agreed sum unless the MOU is cancelled. Cancellation of an agreement can either take place on account of the reasons mentioned in the agreement itself or due to the breach thereof committed by the other party. A suit for damages on account of breach of contract can be filed if the builder commits one.
Get the MOU drafted by a lawyer.
Do not follow the advise of Builders. They are very tricky persons. Sell your property only on one lumpsum amount and do not go for installments. You will be landed in disputes.
Legally draft an MOU .You should incorporate every clause like indemnity , rate of interest in default of payment, recovery of amount etc...All the clause must be in writing specifically. Also register the MOU before registrar.