Postdate cheque
Sharath
(Querist) 29 May 2013
This query is : Resolved
Dear Sir/Madam,
I have decided to buy land, but the developer is not ready to give documents for legal verification unless I book the property by issuing posted date cheque.
Now my question is can we make conditional payment of the cheque by making an agreement so that if the legal verification says problems in property I can cancel my cheque. Something like this
" Both parties have mutually agreed that, unless the buyer(second party) gets legal clearance of the proposed land, the seller (first party) will not clear the cheque" ?
ajay sethi
(Expert) 29 May 2013
is it only a token amount ?
dont issue any post dated cheque for entire amount . verify title of property then proceed .
Sharath
(Querist) 29 May 2013
Its only booking amount (Token advance). Builder is not ready to give property documentation unless I give post dated cheque and he is saying that once I am satisfied with the legal clearance he will go for the cheque clearance. So can we both have an agreement, In-case if I found problem in title verification, but still developer goes for cheque clearance, I can cancel the cheque by giving proper reason.
ajay sethi
(Expert) 29 May 2013
ok then go ahead . consult a local lawyer . verify title is clear and marketable . take a letter from builder that in event defect is found in title cheque shall be returned duly cancelled . the cheque shall be deposited only with your consent in writing
Sharath
(Querist) 29 May 2013
Thank you Ajay for clarifying the doubt
Raj Kumar Makkad
(Expert) 29 May 2013
You should make a conditional agreement mentioning therein the details of the cheque so that you may get it back in case the title is not clear.
Sharath
(Querist) 29 May 2013
Thanks Sir (Raj Kumar), I will do that by consulting local lawyer.
Guest
(Expert) 29 May 2013
I endorse the advice of the experts.
Anirudh
(Expert) 29 May 2013
At the stage in which the querist is presently placed, the question of any agreement does not arise. The Agreement to buy/sell would come only when the buyer agrees to buy the property after doing the due diligence. Even for doing the due diligence the documents are necessary. The seller is not ready to make available the said documents unless the querist gives him a cheque. Please note that there will be no link whatsoever between the cheque and the proposed transaction. Therefore, it will not be so easy for the buyer to get anything in writing from the seller as is being suggested by the experts.
Raj Kumar Makkad
(Expert) 29 May 2013
Agreement for a particular issue and agreement to sale are two different and distinct issues. If both the parties are agree to the points viz. on the part of the seller that the token cheque is required first then the documents shall be shown and the buyer is putting his point that if after going through his documents, it is found that the property is not fit for him, the token amount shall be got refunded then there is no harm to be just make an agreement limited to that extent. This is conditional agreement. Agreement to sale is further action.
