Hi Experts,
I am planning to buy a house in Siddha Pines. I have given a small token around 15 thousand and waiting this month to get over
The broker is saying the process as follows
1. I have to pay 20% and then sign a MOU between owner and my self . Payment by cheque
2. Pay if anything above 20% by cheque and sign a tripartite agreement between myself Siddha and Owner
3. I would submit this agreement + to State Bank of India for loan
4. On day of registration SBI would pay the rest amount

Option 2)
1. I pay by demand draft 20% or more and directly sign the tripartite agreement . Bank would take around 8000 as charge for this
2. Then go for bank loan to SBI same as above

Please suggest if the process is correct and what can be the best approach to take.
What points I should be careful to State Bank of India for loan
4. On day of registration SBI would pay the rest amount

Option 2)
1. I pay by demand draft 20% or more and directly sign the tripartite agreement . Bank would take around 8000 as charge for this
2. Then go for bank loan to SBI same as above

Please suggest if the process is correct and what can be the best approach to take.
What points I should be careful
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  • chefvikas; gharondabhai; - please help me as i have to sign the deal after a long search :)
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  • @Bubai .. I have done a similar deal few years back and here's how it goes :

    I am assuming the flat is not registered yet and you have taken the help of a broker , fundamentally I am not in favour of having brokers because the brokerage outgo is quite substantial , but they also come quite handy in a case like this .You just need to enter into one agreement (tripartie)between yourself, the promoter and the seller. For simplicity , you can just pay 20% of consideration to the seller and have your loan processed. I am hoping you have a pre approved loan from SBI , Otherwise be prepared to wait , SBI loans require a lot of documentation etc.. and time , I have one , took me more than 1 month.

    After the flat is valued , you will get a letter from the promoters' advocate about the demand for Registration amount and the Stamp duty. On the date, you will need to go to the registrar's office and the flat will be registered in your name , your bankers will come and hand over the cheque to the owner and take the original deed and the receipts . The promoter will then issue you a letter of possession , This letter you will need for electricity connection , phone, gas connnection etc , Also you will need to go to the housing association's office and have the flat details transferred in your name .You can then start living in the flat.

    If you have a renowned broker , they will help you each step , they will actually coordinate everything between you , the seller and the developer, They will send you all forms and formats and will take care of everything , You ensure to pay them only at the registrar's office and not before registry , Also try and negotiate on the brokerage , it's wildly negotiable . Another important point , there might be some legal charges , usually levied by the advocates of the developer on third party registrations , make it absolutely clear as to what/if there will be any , Normally these cunning advocates demand these charges on the date of registry and are quite high , they will also charge similar to the seller.Also ensure to get a copy of the registration deed , the ITR etc from the developer. If you have a HBL from a private company/bank , they also help along the way , but for SBI , they don't.
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  • chefvikas; gharondabhai;
    But is signing MOU is legally correct ? Is that a good approach to take ?
    Also if want to take loan less than 80 % , then should I pay owner more than 20 % on the day of tripartite ?

    Please look in the above options and suggest which one is better ?
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  • I have paid 15 thousand as token money, owner has just signed a Xerox of the cheque as an acknowledgement
    Now after this Bhadro month is over, broker is giving two options:

    Option 1:
    1. Sign a MOU as attached above and pay 20% of the flat price
    2. With this MOU , we would sign a tripartite agreement between Siddha (builder),myself and owner. I can pay more than 20 % also now to reduce my loan amount on the date when this agreement would happen. This agreement would contain the entire details
    3. With this agreement, I would apply loan from SBI

    Option 2:
    1. Make a demand draft of the 20 % or more amount and directly go for tripartite agreement
    2. Apply bank loan at SBI
    3. Here I have to pay DD charges around 8000

    Owner has bank loan with Axis bank and SBI has asked few documents from them.

    Please let me know which option to take and safe and if the options are correct or not
    MOU names and address would change but terms and conditions would remain same. Please verify
    As i am first time buyer, I am little confused on this steps.
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  • @Bubai Das , The "MOU" is nothing but a simple agreement between you and the buyer on a stamp paper , after the registration in your name , this "MOU" has no value whatsoever .In the option 2 , in whose name will be the Demand Draft ? If it will be in the name of the seller , then how are the two options different ?? The loan amount disbursed will be only what your due is to the seller after paying whatever you want to pay , It can be anything above 20% , the rest will be given by the bank , You can chose to pay this on the day of registration , before or even after based on your equation with the seller. I would suggest you not co complicate things , go with the advice of the broker , they do these things all the time.

    I would strongly suggest you to get a pre approved loan first if you want to go with SBI .
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  • many thanks
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  • Hi Bubai Das;
    I am also planning to buy an apartment in Siddha Pines. This will be my first property purchase and I am totally inexperienced in these matters. Also presently I am in Bangalore so things are little bit difficult to coordinate from here. Thus I would like to request your guidance in these matters. Would it be possible to personally contact you. I am not able to send you a personal message because I guess I am not allowed to do so yet, as I am a new member in this forum. Could you please send me your contact details and your preferable time to contact. I would be most grateful to you if you could share your experience with me. Many thanks in advance! Any help and advice would be most appreciated.
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  • Dear all experts,
    I am trying to buy a resale flat where the current owner is an investor who has bought the flat from the builder but has not taken the possession certificate for the flat as he does not want to pay for the registration. The owner claims that he has paid all fees and I need to pay only the registration amount on top of the flat's selling price. From the discussions in this forum I understand I should check the following documents before making the tripartite agreement with the builder and the seller:-
    1) agreement paper of the current owner and builder
    2) No dues certificate from builder


    Kindly advise if I need to check any other document.


    Also I understand that many a times in such cases the builder tries to charge for a legal fee and transfer fee from the buyer. Kindly advice if there are any other charges that the builder or seller might want to charge me for, like TDS etc. This help me to gauge exactly what would be the total amount I would have to pay for in my case and thus better negotiate the selling price. Any advice or help would be most appreciated.
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  • There is no standard process and hence most important is mutual understanding and trust between the buyer and the seller. Many issues can crop up during the transaction and hence you would like to deal with a genuine person than some cunning guy. Unfortunately your agents will be useless as you are just one customer to them, as long as you are economical, profitable they will be with you..... ofcourse there will be exception.

    Payment term has to be mutually discussed. Generally there will be a token amount (50K-2-3 L) to finalise the deal. Then there will be full cash portion. After that an agreed percentage is paid, say 20% to prepare a agreement of sale. Your seller clears his loan and retrieve the documents. He passes the documents to you for your loan application, ofcourse after getting some more money. You settle your loan and then plan for the registration. You will require a lawyer and he will gather all the document required. There is no standard requirement of documentation and hence it is very crucial to have mutual understanding between seller and buyer. Before the registration, your lawyer will arrange for stamp duty, registration fees and TDS. On the registration day, go with PAN card and done.

    Once again, there is no standard and many things can happen during the process. So it is probably the most important aspect that you should feel comfortable with the seller. You must feel that the seller is a genuine person and not counting every cents. It may happen that he need to travel few times for you or give you some time for meeting and discussion.

    If it is a good seller then the ride will be smooth. If the seller is not helping and helping selectively then it may be a nightmare. I have seen one of my uncle, who is an expert buyer/seller of properties to be in a deep shit even though he verified the documents with his trusted lawyer. He was not sure whether the deal will go through. On the other side, I purchased my first house without knowing ABC of the game, thanks to the rare agent. Like a family elder he guided in every step.

    So ensure you are with good people and then just follow the flow.
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  • Do the previous owner has bank mortgage?

    If no, there are transfer charges, legal charges ( 2 times) 1 for registration and 1 for creating the tripartite or nomination transfer apart from this, there would be extra charges for amenities to be paid .

    Documents = Original Agreement + money receipts paid by owner to Siddha
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  • thanks gharondabhai;
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  • Thanks Bubai Das; and gharondabhai; I had a talk with Siddha Group and they mentioned that the builder will not sign the tripartite agreement unless all dues have been cleared by the owner. Is that right? Please advise
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  • Purchase of Resale Property

    Hi,

    I am planning to purchase a resale property from a person(landowner) used to own the land where the project has come up. The project is now complete and ready to be occupied. He has not registered the property yet though. I have few questions:

    1. Is it safe to purchase property from a landowner?
    2. Do i need to pay service tax for the transaction?
    3. Should the developer act as the confirming party in the agreement?

    Thanks,
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  • Kolkata : Procedure to Sell a Property

    Hello all ,

    I am about to sell one of my flats in howrah i have owned for last 8 years , under finance from central bank .

    This is the first time i will be selling a property need help as to what i shld take care in the dealing and what documents shld i keep ready apart from the sale deed with bank which i wld release before sale. Shld i handover original deed to buyer before registration/full payment ?

    Guidance from experts here will be very helpful , Thanks in advance
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