charles 25 July 2016

Advice on argiculture land agreement

Dear Sir/madam

I am into buying a agricuture property wherein the farmer who is selling the land has a loan in the corporation bank.

he wants me to pay an20% advance now and then pay off the bank loan constuting 60% of the land value to the bank myself so that he can get the documents out for registeration.

he is willing to register the next day or so.

meanwhile he has made the sketch of the property i intend to buy from his land with the govt surveyor comming and measuring out the land . he says the sketch will be in my name in the land records and can be seen in the computer records.

Is this a feasible way of going about this sale?

if so how can i secure my payment of bank loan which i pay for him to get his document for registration.

can i amke a agreement in this regard legally

plss advise

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4 Replies

P. Venu (Advocate) 26 July 2016

Is the Bank agreeable to the arrangement?

dr g balakrishnan (advocate/counsel supreme court) 26 July 2016

Make an MOU get registered which could be tripartite, you , the proposed seller and the banker who lent loan to the seller of the land, then also indicate in the MOU the land record, when govt surveyor makes the survey shall be one of the clauses.

then you may be able to secure your moneys a great deal as you will be paying the moneys by a cheque transactions, provided you are confident of the seller, after all today no one is trust worthy seller or buyer why bankers too. So risk is the name of the game, after all you wuld just pay only 80% of the very cost of the property in question, is tt not? tks n regds.

dr g balakrishnan (advocate/counsel supreme court) 26 July 2016

Without Banker is agreeable there cannot be tripartite MOU.

charles 26 July 2016

Mr P venu and Dr G Balakrishnan ,Thank you so much for the valuable advise.

I have not approached the sellers bank in this regard. in facrt i had thought of opening an LC thru my bank to sellers bank that the transaction will be done once the registeration is done and the regfisterd slip/voucher from the registrar is produced to the bank. but since the bank has to hand over the documnet once opening an LC i dont know if this can be achieved .

meanwhile i ake your advise to approch the sellers bank along with seller to see id they are agrreeable to MOU tripatriate.will the bank manager have to come to regitrars office to register the MOU?

Pls provide your valuable advise