Purchasing a flat on part payment
Prasad
(Querist) 14 March 2018
This query is : Resolved
Dear Sir,
I have approached my friend to buy his flat located in Bangalore, he agreed to sell the same and due to our close friendship, I proposed him that I will pay part payment initially and occupy the property, and the remaining payment will be made in a period of 24 Months.
I told him that, once I pay him the full payment I will get the flat registered on my name.
In the above scenario, what agreement should i enter with my friend?
Is it an MOU, or a sale agreement or is there any alternative.
Please suggest.
Regards,
Prasad
Vijay Raj Mahajan
(Expert) 15 March 2018
Sale agreement with details of the terms and conditions of payment and temporary possession of the property till final payment and registration of the conveyance or sale Deed.
R.Ramachandran
(Expert) 15 March 2018
It should be an Agreement to Sell.
Since possession of the property is given to you, the Agreement to Sell needs to be compulsorily registered.
All the terms and conditions like (i) total sale consideration; (ii) the initial amount being paid now; (iii) the agreement between the parties to pay the remaining amount within 24 months; (iv) to register the sale deed after receipt of the entire payment etc., should form part of the Agreement, apart from other usual terms and conditions.
Better get the Agreement drafted by a lawyer who is well versed in property law.
Kumar Doab
(Expert) 22 March 2018
'Buyer Beware' applies to property deals.
It shall be appropriate to get proper legal opinion from a very able local senior counsel of unshakable repute and integrity specializing in revenue/property/civil/DRT matters before signing or making payment.
This may cost some FEE but can defend long term interest and hard earned monies.
Kumar Doab
(Expert) 22 March 2018
The act of due diligence before buying the property…………………is necessary.
IT is gross negligence that borrowers/buyers just pay the FEE for legal opinion to lender/bank and feel that their interest is taken care of.
While the borrowers/buyers must avail service of their own counsels, for conducting, proper inquiry, due diligence…. and providing legal opinion to their client (buyer).
Even if IT costs some money IT can indeed save the buyer (client) from hardships, loss, and litigation.
Once you have got the proper legal opinion from a very able counsel as already explained ask such counsel to draft the agreement of sell with proper terms and clauses as posted by you and register IT…
There are many threads on querists/buyers that have been fleeced, at LCI…
