I am proposing to buy a flat in bangalore. In bangalore the builders typically sell the flats by entering into two agreements - one for sale of undivided share in the land on which the apartment project is coming up. and the second - a construction agreement whereby the builder agrees to construct for the purchasers the said flat. One Mr. X booked a flat in under construction project. For that he entered into agreement with builder for of sale of undivided share in land (2100 sft) and construction agreement. These agreements are not registered deeds. Part payment was also made. The construction of apartment has been completed and the builder has started giving possession of flats. Mr. X however has not take possession - though the flat is ready in all respects. Now he has assigned his rights in the said two agreement to me by a deed of assignment with Buider as consenting / confirming party. It has been agreed that the balance amount payable to builder and a premium (profit) to the original allotttee (mr.X) would be payable by me directly. The assignment deed is also not registered. It has been entered on stamp paper. Now the question is how to make a conveyance deed? Who should be the seller and who should be the consenting party. If the builder is the seller, then what is the subject of sale- will it be undivided share in land plus the ready flat? Or only undivided share in land . If so, what happens to flat. The builder was only supposed to construct the flat for ‘X’. SO, in that case will he say that the builder hereby conveys the undivided share of land (with cosent of initial allottee) and hands over the possession of the flat which he has built as per the construction agreement - is it OK. Since the construction is complete will this amount to transfer of a flat than tranfer of rights in the construction agrement. Will the sub-registrar insist that the original allottee should first get the flat registered in his name and only then he can transfer it to me.
1) original agreement between builder and first allottee for sale of undivided share in land should be duly stamped and registered
2) construction agreement should be registered
3) deed of assignment entered into between allottee and you and builder as confirming party should be duly regsitered
4)conveyance deed subject of sale would be undivided share in land and ready flat
1. Since in the instant case, the land is first sold to the buyer by the developer and after that a development agreement is executed, you are required to get the sale of the said share of the land registered in your name.
2. After that you are required to step in to the shoe of Mr.X in connection with the development agreement duly replacing him with the consent of the developer.
3. Mr. X was the owner of his share of the land on which his flat was agreed to be built as per the development agreement. So, to follow the said procedure in vogue in Bangalore you should first get the sale of the share of land of Mr. X registered in your name followed by substitution yourself with Mr.X in the said development agreement with the written consent of the developer.
Yes your observation of the process followed in Bangalore is correct. Moving on to answer your query, the earlier purchaser has assigned his rights to you through an Assignment Deed, where the flat he was intending to purchase will now be purchased by you after you pay the transfer fee to the builder, so basically you will be stepping into his shoes. All the rights vested in him as the purchaser stands transferred to you name through the assignment deed.
Now coming to your question, the seller would be the builder and you will be the purchaser, there would not be a consenting witness.
Next the subject of sale would the UDS along with duly constructed flat, shown in the schedule as "B" & "C" schedule properties.
By the assignment deed, both the UDS and Constructed flat stand assigned to you, therefore there is no need of a separate transfer deed in respect of the constructed flat.
This is accepted by the sub-registrar and he will not insist for the original purchaser to do anything before this sale is registered in your favour.
1. Unless the sale deed was registered in favour of Mr.X the conveyance deed has to be executed by the builder in your favour. The consenting party has to be Mr.X.
2. The subject of sale has to be the undivided share and the flat.
3. Get the documents vetted threadbare by a lawyer before you purchase it.
The conveyance deed shall be made by the seler to the buyer, since the original allottee has already assigned the sale agreement and the property therein to you you by a deed, the builder shall become the vendor to you directly.
As the other deeds also are not registered, you can ask the seller to execute the registered sale deed directly in your favor.
Since the agreement of sale between th first person and the builder was an unregistered document, the registrar will not come into picture.
The builder can register all those deeds in your favor which are required to be registered for transfer of immovable properties as per law.
Even is all the documents are found to be satisfactory, it is advisable that you obtain a legal opinion from a local lawyer before making payment for the purchase of property.
