Abrar (Engr) 05 March 2012

Sale agreement for landlord flat

I had paid booking amount for a flat in Bangalore. Now the flat belongs to Landlord's share, but all his flats are marketed by the builder. I paid the booking amount in the name of builder. All my negotiations were with the builder, the landlord was never in the picture.

The builder holds the GPA from landlord for marketing and selling his share of flats. I have the copy of this GPA. For sale agreement, the builder says I need to pay the 20% of the cost of the flat to the builder but the agreement will be between me and the landlord and it will be written that the landlord received this money. I will go for a bank loan. Bank will release the remaining 80% to the landlord, which the builder says ok.

This means I am paying 20% to the builder and 80% to the landlord.

Is this practice allowed? Am I getting into something not legal?

Thanks in advance.

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3 Replies

M.Sheik Mohammed Ali (advocate) 05 March 2012

if you are get any mutual understanding agreement from the builder and landlord, than it will valid one, same time MOU must regiter that agreement.

Abrar (Engr) 05 March 2012

Thank you Sheik. But if I pay the money to the builder and it is written in the sale agreement that I am paying this money to the landlord, isn't this illegal?

Sorry i am first time into this, so no idea where to look for.

Mahadeva Rao G (ADVOCATE) 02 May 2012

Dear sir, Firstly I feel the GPA given by the land lord to develop the property has to be throughly scrutinized to enumerate the extent of powers under the aforesaid GPA & whether it is registered document or not. Its a bit tricky situation. Usually the LAND OWNERS should be paid the complete considerations towards the sale of flat which fall into the LAND OWNERS Share. Even in the DEED OF ABSOLUTE SALE the narration should be very clear to this extent. If there is any under standing or on MOU ( registered ) between the LAND OWNER & the DEVELOPER / BUILDER that 20% should be paid to the BUILDER and 80 % to the LAND OWNER in such a case there is absolutely no harm in paying accordingly. Only thing to be ensured is that the Agreement of Sale and the Deed of Absolute sale should be drafted professionally which should be binding on both the LAND OWNER & BUILDER. Further if u require any more clarification & professional assistance u can feel free to write to me at sohan1912@rediffmail.com or on 9845285555 in Bangalore.

With Warm Regards,

MAHADEVA RAO G.

ADVOCATE

BANGALORE