I have paid Rs 1 lac booking amount to builder for a new ready to move flat with Occupancy certificate near Mumbai. The total cost is Rs 25Lacs. The builder wants me to pay the full amount to him before registration/stamp duty. He says I have to pay the full amount before registration as I am self funded and not taking a loan. Is this ok and should I take any precautions or insist on registration after part payment? The property documents are clear and he is giving receipts for my payments.
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since construction has been completed OC issued no harm in making full payment . let builder execute regd sale deed in your favour on receipt of full payment
2)in the alternative take bank loan for purchase of flat . repay the bank loan later
3) you will get tax deduction for repayment of principal and interest
you should take a bond from him that if flat shall not be transfer at the time agreed in the agreement then he shall compensate all the losses incurred by you in delayed transfer of flat. you can pay all the money before registration if he assures you to transfer flat at agreed time.
1. In such cases, the payment is made at the registration office through Demand Draft at the time of registering the sale deed.
2. You pay the registration expenses like stamp duty, registration fee etc. to be paid directly to the Registrar, directly and not through the Vendor.
Did you obtain legal opinion from a lawyer about the property proposed to buy and also whether the lawyer has given ok for payment in advance?
What is the necessity for the builder to seek money in advance especially when you are willing to pay the entire amount at one stroke at the time of registration and you are ready for getting the registered sale deed executed at any time.
You may exercise caution while making payment because in my opinion there appears no necessity to pay in advance if there is no problem in registering the execution of sale deed.
