Hi All
I have been follwing this forum for quite some time and have found very useful information. I wanted a specific help on one issue. I am exploring purchase of a flat which is under construction (90% complete) . This flat is an investor flat where investor has an Agreement for Sale (Rs 100 stamp duty) with builder. In this transaction, final title transfer will happen between builder and me while I need to pay the price to investor. Since my source of fund is a bank loan, bank needs to disburse the loan amount to investor. Bank has suggested that we need to have a tripartite agreement involving builder, investor & me in this case. Has any of you seen/been involved in such a transaction? Are such transactions common? How does it work? Does anybody have sample format of such an agreement? Any suggestion/information in this matter will be very useful. Thanks in advance!
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  • Experts!

    Any suggestions/information from experts?
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  • Originally Posted by sunbeam
    Any suggestions/information from experts?


    Has agreement to sale been registered?
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  • No. it has not been registered.
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  • My question is similar to sunbeam's to tagging it along and not wasting another thread.

    Mine is a similar situation, except that the flat is 98% done and the investor has done the registration and stamp duty already. What should I consider before buying this flat??
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  • INVESTMENT IN REALTY

    Hi, Though I ve never been involved in such transaction, but I would like to advise you that not to take any early decision without taking proper guidance. there are lots of financial and property advisors, you shoul take their help...thanks..
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  • tripartite agreement is common in these scenarios, but do involve a property lawyer to do the due diligence. In such transactions, investor might expect some amount in black, so be wary.
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  • Thanks lazybone, I'll get a lawyer involved for due diligence. Just wanted to know if you have any idea what role does investor play in this kinda agreement..does he act as a confirming party?
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  • I would rather advise to deal only if you know the investor well ad of you feel you can trust him. By the way 'investor' only trust in M and nothing else. There will be a black M component and if so this will be risky and overall you won't gain any ROI as you will be loosing on cap. gain if you don't get another custoner - ready to pay B-M.
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  • Yes it would be a Tripartie agreement between Investor (Transferer), Builder (Developer) and Customer (Flat Purchaser)...Again the builder may ask you 50k-55k for facilitation...it would go for paying under the table payments...
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  • Yes, there are going to be some extra charges but it is a common practice in the industry these days. Make an agreement and also get it registered within 3 parties if you have to, but I have also seen lot of re-sale happening without it. See what your bank wants and do that to move forward.
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  • Thanks for the info! that was really useful. Could you pls elaborate on how it can be done without 3-party agreement? because, in such case bank won't hv any handle to pay to investor.
    Also, in such transactions, one pays full amount to the investor at the registration or in phases i.e. as per the construction status? (building is currently 90% complete)
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