Advice Required...Thanks
Chandrika Subramaniyan
(Querist) 11 September 2010
This query is : Resolved
My question is should I give the tenant a copy of the sale and settlement Deeds or not ?I do not know the Tenant well….and from below…wonder whether he can be trusted considering he is also in the property field himself.
Brief on effort and action made so far towards selling a property.
1.Decided to sell a flat (1/6th Owner ship of Land/Plot measuring 1 Ground and 1175 Sq Ft and a 2 BR Aptmnt measuring 825Sq Ft in the plot )bought by my Father in 1975 in Desikachary Road Alwarpet and subsequently recieved the property to my name after demise of Father in 1993 under settlement agreement between Mother,Brother and Self.
2. Talked to the Tenant residing there currently on 11 Month contract from year 01 Nov 2004 and informed him on my decision.He was ready to buy the property although his tentative price quote did not match what the Builders (Original Builders of the Property Value it at currently…that is the market and potential sale value). Did not match my expectations or research that gave me a fair price value. I may negotiate to agree to lower price by 3 to 4 Lakhs.
3. Meanwhile Tenant requires copy of the sale deed & settlement deed to take it to the bank to assess his loan possibility and to get the property valued by them and to get the mortgage value of that property before he buys….before he will re consider his offer to buy price.
4. The Original Builder….the senior marketing executive is of the opinion not to give even a copy of the sale and settlement deed without a pre sale agreement and 10 to 20 Lakhs in DD before releasing even the copy. Their opinion is that the Tenant really does not need a copy of the sale deed and settlement deed to assess all of the above he claims he needs the sale deed to assess. Says…..Loan approval really depends on the income potential….the Bank value of the property may not necessarily be the market value…and that by giving the address of where the tenant resides….he can very easily get a mortgage value of the property from the local municipal/corporation office.
Thank you for your guidance and opinions
Rgds
Chandrika
s.subramanian
(Expert) 11 September 2010
You need not hand over the copies of those documents now. Once he enters into the sale agreement paying advance money,you can give him only the xerox copies of those documents. Not at anytime before that. He can approach the bankers after the agreement is over. I am saying so because lot of malpractices are taking place in the city nowadays. There is every chance for him to misuse or abuse the copies of documents. Do not take any risk. The banker's value has nothing to do with us. After all it is for the buyer to arrange for the money,if he is really interested in buying the flat.
R.Ramachandran
(Expert) 11 September 2010
What your original builder and Mr. S.Subramanian says is to safeguard your interests. However, it is also a practice to take photocopy of the relevant documents, draw a big cross lines diagnally in the document (in order to protect the interests of the original owner that the document should not be misused in any manner) and then to hand over the copy to the potential buyer for due diligence, or for ascertaining from the bank whether he would get loan and if so how much etc. Since it will be the prerogative of the seller to agree to the sale consideration, whether the bank will adopt the latest prevailing value or not should not be a consideration. In my opinion, handing over the photocopy of the documents duly crossed should not be an issue.
R.Ranganathan
(Expert) 12 September 2010
First you ask the purchaser to get a letter from the Bank where he is getting the loan stating how much loan, he is eligible as per his repayment capacity. For this purpose no need of any documents. After getting this sanction/pre approval letter from the Bank then if he can arrange for the difference amount in the sale consideration only, you have to enter into a sale agreement and not before that. At the time of entering into sale agreement ask the purchaser to pay in advance,all the amounts other than at least 90 % of the loan he is eligible for. This way you can safeguard yourself from any fraudulent dealings.For clarity I will explain it.
Suppose the property is worth Rs. 200/-. Purchaser is eligible for a loan of only Rs. 80/-. Then at the time of entering into an agreement ask him to pay as advance min. of Rs. 120/- + 10 % of Rs. 80 to you.
GIRISH SULE
(Expert) 13 September 2010
Your quries are complicated . Pl first undersatand what you want to do and your limits .Contact a lawyer and then solve the issue . Mortgaing the the property is quite technical .
