I am currently negotiating a resale deal in vaishali and i urgently need some advice from senior members here:
1. Seller wants me to pay black component before the agreement to sale is made as if once in sale agreement white amount is written, i may not be bound to pay cash component. As per what I have been told - cash is given only on the day of the registry. Which is true/right?

2. seller does not have no dues certificate from the builder. Home loan agent says they are willing to issue loan without no dues - his logic - since the sale deed is proper it obviously means that seller has paid all money to the builder otherwise why would he allow registry of flat? Again - this logic withstanding, i want to insist on no dues certificate. What should be my way forward? and if seller fails to produce it - then what to do?

3. After the bayana was paid - broker is also acting high headed. He is ignoring calls, delaying process - for example acting busy and not helping in legal valuation (as in flat is closed n he has key so says to home loan agent - come tomorrow for verification, i am unavailable right now) and even not cooperating in getting no dues certificate. How should i handle the broker. There is a possibility that he may be genuinely busy for 2-3 days but its still causing me anxiety. I dont want to call him again because its almost like trying to chase him but i still need to get work done. Way forward?

I am really stressed, please advice.
Read more
Reply
9 Replies
Sort by :Filter by :
  • As per my gut feeling deal is suspicious, get out of it asap without a second thought. Market is down and dealers are killing flies as a time pass, don't become a fly for them. A penny loss is better than the whole treasure.
    CommentQuote
  • Call him and tell him the cash is ready. Get apartment checked. Cancel the deal on his face.
    CommentQuote
  • Thank you so very much KaamDev; and nikkkmmm;..
    I seek a few more suggestions on nitty gritties of concluding a resale property deal:

    1. How and when should the cash payment be made (although i will strive for an all white deal). For example - if seller wants it delivered in his house, or some where else, or if it should be paid at the time to registry then how should one really go about it? And what kind of a receipt should one get for cash component?

    2. When should the full payment be made (in white). The seller will want it at least a day before registry - the buyer may want to make and electronic transfer on the day of registry, after the seller has arrived at the sub registrars office. What is the norm or the safest way to do so for a buyer? I know it is bank transfer and there will be trail but then if something goes wrong - one case takes 15 yrs to conclude. So better safe than sorry.

    3. If at the time of bank loan you find some property document missing - for instance - no dues certificate issued by the builder is missing. But bank is willing to process the loan nevertheless. Should one agree for it, or insist on no dues certificate? How important is this paper in context of a resale flat, where possession has already been granted some 5 years ago. Will it be easy to get the builder to issue it now in case it did not issue it earlier or if it has been lost?

    4. Lastly, theres a catch 22 situation, bank and broker will want buyer to deposit TDS before the registry but as a rule tds is paid AFTER the payment is made. What should the buyer do in this situation.
    CommentQuote
  • Originally Posted by American
    Thank you so very much Kaamdev and nikkkmmm..
    I seek a few more suggestions on nitty gritties of concluding a resale property deal:

    1. How and when should the cash payment be made (although i will strive for an all white deal). For example - if seller wants it delivered in his house, or some where else, or if it should be paid at the time to registry then how should one really go about it? And what kind of a receipt should one get for cash component?

    2. When should the full payment be made (in white). The seller will want it at least a day before registry - the buyer may want to make and electronic transfer on the day of registry, after the seller has arrived at the sub registrars office. What is the norm or the safest way to do so for a buyer? I know it is bank transfer and there will be trail but then if something goes wrong - one case takes 15 yrs to conclude. So better safe than sorry.

    3. If at the time of bank loan you find some property document missing - for instance - no dues certificate issued by the builder is missing. But bank is willing to process the loan nevertheless. Should one agree for it, or insist on no dues certificate? How important is this paper in context of a resale flat, where possession has already been granted some 5 years ago. Will it be easy to get the builder to issue it now in case it did not issue it earlier or if it has been lost?

    4. Lastly, theres a catch 22 situation, bank and broker will want buyer to deposit TDS before the registry but as a rule tds is paid AFTER the payment is made. What should the buyer do in this situation.



    1. First of all get an agreement ready with all white component mentioned(Get it registered for your benefit). This is completely on the basis of trust factor, you need to pay white first(Seller might need to close his home loan if any), get all the property documents with copies(Make sure seller has all the hard copies available with him), get in touch with builder and check whether any dues is there on the seller or not.


    2. Cash component need to be paid at the time of registration only. You may ask for a kachhi raseed for that and that should not be an issue for seller as same can't be a legal proof, but this just only ensures that everything is fair from seller's side. In case seller shows any hesitation in doing then that means something fishy.


    Always keep maximum person available at the time of payments.
    CommentQuote
  • Originally Posted by KaamDev
    1. First of all get an agreement ready with all white component mentioned(Get it registered for your benefit). This is completely on the basis of trust factor, you need to pay white first(Seller might need to close his home loan if any), get all the property documents with copies(Make sure seller has all the hard copies available with him), get in touch with builder and check whether any dues is there on the seller or not.


    2. Cash component need to be paid at the time of registration only. You may ask for a kachhi raseed for that and that should not be an issue for seller as same can't be a legal proof, but this just only ensures that everything is fair from seller's side. In case seller shows any hesitation in doing then that means something fishy.


    Always keep maximum person available at the time of payments.


    Sir, out of the 60 lakhs as agreed price, I have already paid 6 lakhs. And i have an unregistered sale agreement (notarized) on 100rs stamp paper. The problem is that during legal verification from bank loan lawyer point out that seller has not provided possession certificate issued by the builder and no dues certificate by the builder. Now, instead of going to the builder and trying to get these documents, the seller is trying to call and tell the bank loan agent that these documents are not required. But why not? Why cant he at least try to get them from the builder? We will also need these documents when we go to sell it 6-8 years later. Now what should I do? Since the bank is willing to provide loan - should I go ahead and buy it despite these 2 documents missing OR should I cancel the sale agreement. In which case, given that the sale agreement is unregistered - what rights do i have? One person told me that while i cannot file a civil law suit to force him to complete the contract because agreement is unregistered - I can still file a criminal case of cheating against him for not refunding earnest money.

    Other issue is also that since out of total 60, 10 lakhs is cash component - he is asking me to pay that in advance - as we will need to make a new sale deed for bank of 50 lakhs (only white amount) for disbursement and buyer is insecure that I may not pay it later on. This of course I will resist.

    But please respond to the other point: should I ignore the lack of possession letter and no dues certificate or cancel the deal if seller fails to produce it?
    CommentQuote
  • multistory flat/ builder flat?
    this is yr first deal tension to hogi?
    BHAGWAN PE BHAROSA RAKHO.
    CommentQuote
  • Thank you ARJUNPUNJABI; bhai..

    But this stress is too much for me to take. And I just want to get out of this deal.

    1. Even if not very necessary - as the seller has been telling us. The fact is that the bank lawyer has asked for possession certificate and no dues and he doesnt have them. I dont know if bank will agree for home loan without it or not, but I was still ready to negotiate on with bank on this
    2. But then this seller wants cash to be paid in advance. During the course of meetings - i had requested for all white deal but when he did not agree, i mentioned at least 4-5 times that we will cash at the time of registry. He did not say anything then. Now after he has 10% in his bank - he wants cash to be given. Giving cash to him at this point in time is NOT POSSIBLE irrespective of whatever buying norms say. Especially in a situation where home loan disbursement is stuck on his property papers - he says he will get them cleared - but who knows?

    I am no longer interested in dealing with him. I am at the breaking point in life. I cannot tell my old parents all this as they will take stress. I just want my money back and i want to get out of this deal. PLs pls pls someone help me. 6 lakhs is a lot of money for me. I dont know what to do. I dont know anyone in delhi-ncr. I just want to get out of this situation. desperately.
    CommentQuote
  • Keep Patience BRO :) Seniors gonna help you out as much as they can.

    I know after this hassle you or anyone in your place would not be interested in the deal.And yeah getting your 6 lakhs back should be only goal for you now.

    I think you are investing a decent amount of 60 lakhs , no need of this much jhanjhat. Just try to look for more legal options and would request you to talk to seniors over the phone or email to get the things done in a quicker way.
    CommentQuote
  • Please provide the break up of complete deal. Get your home loan approved on the same property, but not sanctioned.
    CommentQuote