desibabu

Can some of the experienced re investors describe step by step what to do when selling your property, what paper work to do when selling in resale a RTM flat ? Also, what to do if the buyer says submit TM in authority after just paying small token and refusing to pay the colored money until TM is submitted ? In this scenario, buyer can legally take seller to court with the agreement to sell which is most likely only listing half the amount of real total amount.

VIPG2011

Generally in resale deal, two ATS's signed.

First one at the time of giving token money. In the first one, the whole amount (white + coloured) been mentioned, including the dates of future payments and overall transaction time. The originall copy of the first ATS remains with the buyer generally in a sealed envelop signed by both of the parties and the broker.

The second one gets created and signed when all the payment being paid (White amount in Chq or draft and coloured one is in cash). The same time seller sign the transfer papers. The older ATS document (sealed one) gets destroyed in front of buyer, seller and broker once the payment is done saisfactory and seller obligations like interest / transfer carges deposited with the developer. This whole process goes in one sitting.

This way both buyer / seller can take legal action on the basis of first ATS in case there are issues in the deal, where actual amount has been declared.

The second one remain in existence and becomes the legal document. On the basis of it transfer / loan / registration processs followed.

Hope this will help in clarifying the issue.

I have done 2-3 deals in re-sale, so I have an average knowledge about the process.

desibabu

Something, like this happened to someone I heard. I heard they made 2 agreements like you mentioned. Buyer got the agreement which had both colored money and non colored money figures. Buyer submitted non colored money agreement to sell to bank got loan approved. Buyer, then hired a lawyer and snatched property for only the non colored amount + Token, basically robbing the seller. So, basically sellers are at mercy of buyer and hope the buyer don't screw them ? Legally, the seller is not going to say they made 2 agreements.

aabansal

what you have mentioned is an odd one off case....mostly buyers are at the mercy of sellers...i dont think any seller is foolish enough to sign only white component agreement before accepting the black amount...it is either signed after getting the black money..or you sign two agreements in advance in case bank loan etc. is involved.

VIPG2011

Robbers are every where!!

Thats generally do not happen, and exceptions are always there. Even some one can loot you on NH8, when you coming back after taking cash payment from the buyer ;-)

I just told the general process followed, in case you are so scared or want it 100 % safe, done't take a single penny as cash, take 100% in cheque and pay taxes over your earnings. Here is the fullproof.

desibabu

I don't know much about this but I heard the seller made 2 agreement to sell. Buyer took the one with both amounts and took noncolored amount for the bank loan. After, bank loan approval the buyer had an advocate involved and snatched the property for only noncolored amount. No, seller is going to say they made 2 agreements and get in problem with tax collectors. How to prevent this ?

I am trying to learn so I don't have to experience this down the road when I go to sell mine. There are so many crooks out there now, its sad.

aabansal

if you want to be absolutely sure then either go for full white deal as mentioned in the above post...or the 2nd way is to take the full black payment in advance and then sign on agreement for only white amount..in case buyer has to take loan then you may have to give him additional time for making the final payment.

VIPG2011

Very much agree.No seller is fool enough, to sign only the white portion ATS without grabing the coloured one .

desibabu

I am not experienced so please bare with me. Who in their right mind will hand over lets say 20 L to a stranger hoping the seller will not screw the buyer? and if the seller makes 2 agreement to sell, the seller can be screwed like the case I mentioned above. So, how to stay safe as seller and as buyer because we are going to be on both ends of the boat in life time. I know RE is all faith based but now days people want something in writing at least so how do you convince that buyer ?

desibabu