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Old February 21 2011, 12:31 PM   #1
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Default Steps for the resale deal ?

Hi All,
I am very new in buying property and bit paranoid regarding this sector .I need to finalize a resale deal but i am not sure what are the correct steps or the sequence of events.Please help me in this.I am buying a property i.e with construction linked plan.
1. There will be meeting of seller/buyer and token money has to be presented by the buyer if the deal finalizes.
2. Seller and buyer needs to go to builder office regarding the transfer of papers.
3. Pay the black/premium to the seller and broker fees.

I have couple of questions regarding?
1. When will the seller provide me the Registry papers , Transfer papers and power of attorney ?
2. Do i need to do a lawyer who will check the papers and everything ?
3. Who will pay the transfer charges i.e seller or buyer ?
4. What is the broker fees generally ? Is it on the size of transaction or the BSP only ?


BR,
B.

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Old February 21 2011, 01:18 PM   #2
 
 
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I have never bought in resale, but let me try answering on what i know -



2. Do i need to do a lawyer who will check the papers and everything ?

Yes, its always better, but a knowledgeable broker can also do the job .

3. Who will pay the transfer charges i.e seller or buyer ?

This is a part of the deal. U have to decide this, while negotiating the price . Seller/Buyer, both can pay .

4. What is the broker fees generally ? Is it on the size of transaction or the BSP only ?

Brokers normally ask for 1 %, but settle for 0.5 % of BSP . Clear this point, before hand .



Guys, correct me, wherever, i am wrong .
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Old February 21 2011, 08:44 PM   #3
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Quote:
Originally Posted by bhardwaj View Post
Hi All,
I am very new in buying property and bit paranoid regarding this sector .I need to finalize a resale deal but i am not sure what are the correct steps or the sequence of events.Please help me in this.I am buying a property i.e with construction linked plan.
1. There will be meeting of seller/buyer and token money has to be presented by the buyer if the deal finalizes.
2. Seller and buyer needs to go to builder office regarding the transfer of papers.
3. Pay the black/premium to the seller and broker fees.

I have couple of questions regarding?
1. When will the seller provide me the Registry papers , Transfer papers and power of attorney ?
2. Do i need to do a lawyer who will check the papers and everything ?
3. Who will pay the transfer charges i.e seller or buyer ?
4. What is the broker fees generally ? Is it on the size of transaction or the BSP only ?


BR,
B.

Hi,

I am about to complete a transfer on behalf of my in-laws. they bought a flat in resale... I think I have never been so tense the way this deal has gone through... its been 2 months now. hopefully transfer would be executed in 1 or 2 days as per the broker. OK so here is a normal procedure

1) Token money to block the deal for few days...
2) broker gets the paper ready... starting point is "agreement for sale" to be signed by both the parties.
3) White amount is paid partially in the beginning to move the deal forward. and in return buyer gets the recieving on the cheque/draft given to seller. photocopies of property, agreement for sale, property outstanding due, photocopies of the receipts etc are given to the seller.
4) normally one month of time is given to close the deal from both the sides. This clause is mentioned in agreement for sale. This one month is given to buyer to arrange the amount (black + white) and to seller to clear any interest payment to be paid to the builder... Also cash amount is paid to the seller in between.
5) Broker completes the formalites of getting transfer papers ready. Signature from both sides. full payment made to seller.

6) transfer set submission with NOC from builder.


buyer and seller meets rarely... thats how the deal goes through now days... reason is that brokers generally make lot of money other than brokerage charges. e.g. seller agrees at 2900 psqft and broker somehow convinces buyer at 3000 psqft.. since premium is paid in cash so seller would never know the actual price buyer is paying unless and until both parties meet... broker never let that happen...
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Old February 22 2011, 04:12 PM   #4
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Thanks Nitin and Manoja.

So when we will get Registry papers and power of attorney on our name ? at point 5 in Nitin's post.with transfer papers ?
What are the transfer charges like ? How much % of the deal ? Is there any other charges except above ? like preparing the papers(to be done by broker in point 2) etc and do i need to pay that except broker's fees ?
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Old February 22 2011, 04:17 PM   #5
 
 
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The broker may ask for the cost of any Stamp papers, if involved & that's it, rest is his job, for which he is taking some brokerage from u .

Transfer charges depends from builder to builder, somewhere the first transfer is free, someplace's 50 or 100 psf .
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Old February 22 2011, 08:18 PM   #6
 
 
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Good info, Manoja and Nitin. Thanks for detailing, I also want this info.

Is resale of booking possible on advertisement basis also, or only broker?

How is the black payment paid ?

i.e. I will get a cheque which will be in white for whatever lakhs is paid by me to builder - say 10L. That is easily handled.

Premium you say has to be black. A premium of say 1000 psf would amount to 10L for 1000 sf flat. Will this be given to me in cash? This is a massive amount. Do I carry it in the car - would I be waylaid and robbed - this is difficult.

Or does one get the cash delivery at home - in which case one is letting thug like brokers into the home and he knows also that 10L in cash is lying in the house, providing incentive for burglary or robbery. Unpleasant

Why not collect the premium in cheque also and pay tax on it? Do buyers agree or they will insist on paying cash ? What if my buyer needs a bank loan for all this - can that be for the full amount.

Suppose 20L payment is still left to be paid to the builder - is there some agreement etc in which buyer agrees to make all future payments?

Would appreciate more on this from people who have done such deals

RE deals dont just seem to suck in black money, they also seem to generate a whole lot of black money if this is how deals are done. RE might in fact be the biggest generator of black money in the economy - every tom dick and harry can generate black money like this in lakhs
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Old February 22 2011, 08:51 PM   #7
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Let me try, i hope i am able to answer most of your concerns...Pls correct me if i am wrong

Quote:
Originally Posted by Venkytalks View Post
Good info, Manoja and Nitin. Thanks for detailing, I also want this info.

Is resale of booking possible on advertisement basis also, or only broker?- Both, seller generally dont take the pain to give out an adversiment, preffd to get it noted with brokers, however, thier is no hard & fast rule...

How is the black payment paid ?

i.e. I will get a cheque which will be in white for whatever lakhs is paid by me to builder - say 10L. That is easily handled.- Correct

Premium you say has to be black. A premium of say 1000 psf would amount to 10L for 1000 sf flat. Will this be given to me in cash? This is a massive amount. Do I carry it in the car - would I be waylaid and robbed - this is difficult.Generally, in resale, premium is paid in cash, however, it really depends on the seller, if he/she wants to take in White money, he can very well take a cheque and pay tax...as simple as that.

Or does one get the cash delivery at home - in which case one is letting thug like brokers into the home and he knows also that 10L in cash is lying in the house, providing incentive for burglary or robbery. Unpleasant- Agree!

Why not collect the premium in cheque also and pay tax on it? Do buyers agree or they will insist on paying cash ?Depends on the potential buyer, it always benfit to buyer as it will be white. What if my buyer needs a bank loan for all this - can that be for the full amount., If buyer pays premium in cheque, he will get the get a loan on full amount( including premium) provided its ranging a certain cap- market valuation etc etc,( HDFC has this rule, not sure about others)

Suppose 20L payment is still left to be paid to the builder - is there some agreement etc in which buyer agrees to make all future payments?One builder buyer aggrement gets endorsed, potential buyer is liable to pay all the future payments.

Would appreciate more on this from people who have done such deals

RE deals dont just seem to suck in black money, they also seem to generate a whole lot of black money if this is how deals are done. RE might in fact be the biggest generator of black money in the economy - every tom dick and harry can generate black money like this in lakhs
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Old February 22 2011, 10:08 PM   #8
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some black is paid during agreement to sell , then at the day of transfer , buyer seller and broker generally meet beforehand the same day at brokers office or sellers house , the black payment is made and drafts for transfer are shown to seller , once black component is received (drafts can be given at this time also or in the builder's office) , the seller hands over original papers to buyer as security to buyer of his black component , then all of them head towards builders office to submit transfer papers !!!
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Old February 22 2011, 10:14 PM   #9
 
 
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Thanks Ishan.

When is the cheque for the white amount handed over? Obviously first cheque has to clear.

Black of course is cash. SO I presume seller gets all the money and then only people head to the builder for the transfer

This is why I refused to participate in the real estate market for 10 long years.

Its like Don with his briefcase full of cash, a red diary and a pistol going for his "business" meeting.

No gain is worth so much pain
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Old February 22 2011, 10:25 PM   #10
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haha , resale deals should be done through trusted brokers , and when you pay premium in black , or if black component is more than white in a deal , then after buyer hands it over to the seller , the seller hand over the original papers of the property to the buyer , and then they head towards builders office for transfer or the registrar office whatever is the case !!!1


if you are very scared of black component you can look for full white deals in resale as well !!


Quote:
Originally Posted by Venkytalks View Post
Thanks Ishan.

When is the cheque for the white amount handed over? Obviously first cheque has to clear.

Black of course is cash. SO I presume seller gets all the money and then only people head to the builder for the transfer

This is why I refused to participate in the real estate market for 10 long years.

Its like Don with his briefcase full of cash, a red diary and a pistol going for his "business" meeting.

No gain is worth so much pain
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