Dear users,

I want to purchase a residential plot in Bangalore and the seller is asking to pay 100 % amount by cash. The seller told me that they are 4 brothers and due to lack of trust among themselves, they can't accept the money in anyone's bank account hence I need to pay 100 % by cash.

I badly need some expert opinion on the following:

1. My source of income is 100 % genuine (white money). Should I go ahead and pay cash ? All my money is in bank so is it okay to withdraw funds to the tune of 20 Lacs from the bank (Say in 2-3 instalments within 1 week ?)

2. I read it somewhere in this forum that in case of cash payment one should take the receipt with sales tax number. What is the sales tax number ? Is there any specific format for the receipt ? Should I get signature of all 4 brothers (From the seller side) on the receipt ?

3. The seller is suggesting that I pay him 100 % cash and then we write all the amount in the sale agreement and eventually on the property registration documents. Is this accepted as per Indian Regulations ?

Your time and help is highly appreciated.

Thanks in advance.

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  • If the entire cash is being reflected in sale agreement it should be in order.Only consult lawyer to draft an appropriate sale deed.
    There is nothing to my knowledge known as sales tax number for such transactions.PAN number is the requirement.
  • Obviously these guys don't want to pay any sort of tax, that is why they are asking you to pay in black. You don't need any loan for this? Be careful and do a thorough verification and make sure there are no chances of litigation in future.

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  • Thanks Vaibhav. Just to make sure we are on the same page, the PAN number of the seller must be captured in the Sale Agreement and in the Sale Deed right ?

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  • There is something fishy about this.

    They can simply tell you what name to write checks on, I am sure you wont mind writing 10 different checks to 10 people, depending upon how they want to share the loot.

    And if they dont like checks, demand draft will also work the same. If they dont have a bank account that is a different problem.

    I would be very wary of doing transanction with these kind of people.
  • If 4 brothers have right on the property, then ensure that in sale deed, it is mentioned amount of money given to each person. Otherwise, one person's name will be in the sale deed. Other brother will go to court saying he did not receive money and he was also rightful owner.