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- Originally Posted by krsm12Can someone please highlight the differences between buying a new apartment directly from a builder v/s buying from an investor who has not registered the UDS. What are the things to look out for when doing such a transaction?
I have got a resale offer for a new under construction apt that is almost ready to occupy. the seller has a booking agreement with the builder and he has been paying them as per schedule. however he has not registered the UDS in his name. Now he wants to sell the apt and book profit. He says the 3 parties - buyer (me), seller (him) and builder can enter into a tri-party agreement which will mention that he is doing a sale of the apt booked by him and request the builder to register the UDS directly in the buyer's name (ie. my name). And he is in good terms with builder and therefore they will co-operate without any issues. He also mentioned that my bank should disburse the loan amount in his name and not to the builder.
Has anyone done such a tri-party agreement? If yes can you pls share your experience?
Please consult a reputed lawyer for such complicated issues.
Based on what you have said, In my opinion, Its a strict NO.The Reason why I say so is, the seller doesnt own anything on his name.There is absolutely no premise why you should ask the bank to issue cheque for complete amount in his name.What if the builder denies registration and you are not able to recover the money back from seller?
The agreement between the seller and builder shouldnt concern you..Any money that the seller has given to the builder should be collected back directly only from the builder.If the seller wants to exit, let him initiate a name transfer or let him cancel the booking and bear the cost imposed the builder.
When the offer is not at huge discount over market rate, Why should you bear the cost for the investors exit and builders liquidity problems?That too at a profit for the builder/investor taking a loss/debt onto yourself?
In any case my advise..try to keep RE transaction straightforward and simple..The whole joy of buying a home will be lost if you get entangled with legal issues.Its better to look for orignal resales than such investor flats.You may have to pay registration cost on built-up area but it may work out cheaper than such builder flats sold by proxy on profit.CommentQuote0Flag
- Is it so simple ? Illegal it looks on face value. Why and how Bank will pay loan amount to a person for sailing a booked but not registered flat ? Does nationalised Banks entertain such loan?
After so much bank frauds afraid if it is some kind of fraud only..
May be that in totality some foolproof legal documentation there to believe it to be true, it should be judged for taxation point of view ultimately to safe guard Gov interest in housing deal/transactions..CommentQuote0Flag