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Old July 26 2012, 08:14 AM   #1
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Default Procedure to buy under construction flat through resale

Hi All,

I have finalized a property which is under construction. Existing owner has paid 80% of the amount, possession is due in 2 months and rest of the amount (VAT, Service Tax, Registration) will be paid at the time of possession.

I met the current owner through a forum & I don't know him personally. How can I proceed now?

Also the current owner has bought it at x per/sqft and now selling it at x+y per/sqft. I want to avail loan at total amount x+y. How will this happen? Will builder issue a new cost break-up?

I came to know that I need to execute a Memorandum of understanding b/w me and current owner. What will be the content of MOU?

How the legality of MOU is ensured. Can I pay some token amount to current owner on the basis of MOU signed as I don't know him.

-Vivek
 
Old October 1 2012, 08:21 PM   #2
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Quote:
Originally Posted by vivanarang View Post
Hi All,

I have finalized a property which is under construction. Existing owner has paid 80% of the amount, possession is due in 2 months and rest of the amount (VAT, Service Tax, Registration) will be paid at the time of possession.

I met the current owner through a forum & I don't know him personally. How can I proceed now?

Also the current owner has bought it at x per/sqft and now selling it at x+y per/sqft. I want to avail loan at total amount x+y. How will this happen? Will builder issue a new cost break-up?

I came to know that I need to execute a Memorandum of understanding b/w me and current owner. What will be the content of MOU?

How the legality of MOU is ensured. Can I pay some token amount to current owner on the basis of MOU signed as I don't know him.

-Vivek


Please share your experience about the loan (x or x+y) because I am in the same situation now.

Thanks
 
Old February 18 2013, 07:15 PM   #3
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Icon25 Same situation

Can you guys please help me with this situation as i am about to buy a similar flat.
 
Old February 18 2013, 07:28 PM   #4
 
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Hi All
In order to regularise this you will need to enter into a tripartite agreement between you+owner+developer/builder. It is normally known as assignment deed wherein the current owner assigns the rights to you. There will normally be a fee the builder will demand as per the original agreement which you need to check and make sure that this is sorted out as to who bear this cost. Normally the owner has to bear this as it is like giving a share from the profit made by the owner.
Please also take care that the title deed is clear and does not have any encumbrances and is free hold. Get it checked by a good lawyer.
All the Best
gkannan16 and ullasishere like this.
 
Old February 18 2013, 07:31 PM   #5
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pp1951, good information...you have been doing a good job....thanks much....
 
Old February 18 2013, 07:43 PM   #6
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Originally Posted by pp1951 View Post
Hi All
In order to regularise this you will need to enter into a tripartite agreement between you+owner+developer/builder. It is normally known as assignment deed wherein the current owner assigns the rights to you. There will normally be a fee the builder will demand as per the original agreement which you need to check and make sure that this is sorted out as to who bear this cost. Normally the owner has to bear this as it is like giving a share from the profit made by the owner.
Please also take care that the title deed is clear and does not have any encumbrances and is free hold. Get it checked by a good lawyer.
All the Best
Thanks PP, so this triparty agreement is a legal document for sale and the seller cant back out once he signs it?

Also please confirm how does the payment work out for such a agreement? i.e. when do i pay the seller - before agreement, on agreement or after agreement?
 
Old February 19 2013, 04:16 PM   #7
 
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It is on normally on agreement or as agreed by you with the owner. Normally all the payments due to the developer would have been paid by the owner. Once you make the payment you can get the flat registered in your name by the developer. You will have to bear the registration cost.
 
Old February 19 2013, 04:17 PM   #8
 
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Thanks. I feel encouraged.
 
Old February 19 2013, 04:46 PM   #9
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Quote:
Originally Posted by pp1951 View Post
It is on normally on agreement or as agreed by you with the owner. Normally all the payments due to the developer would have been paid by the owner. Once you make the payment you can get the flat registered in your name by the developer. You will have to bear the registration cost.

Normally this is how a pure investor does it.. They will buy it from the builder at cheap rate even before approval/layout plan etc., and finally sell it in big margin to the end customer.


In case anybody want to become a investor it is very much important to know about this process. otherwise you need to bear the registration cost on you..
 
Old February 20 2013, 02:10 PM   #10
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Default registration of a resale under construction flat

Hi,

I am under negotiation to buy a flat which is ready but owner has not taken possession and registration is not done.

As per broker/builder/owner an assignment deed would be signed (tri party agreement) and with that builder will transfer the flat to my name. Later builder will give first registration of the flat directly to me.

Now initially when project was launched owner had bought the flat for x. He is selling to me for x+y.

But issue I am facing is that builder is not ready to give registration for x+y. Builder wants to give me registration only for x. I am not sure whether this is correct. Can anyone advise me on it. I am very much confused.
 
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