Sale agreement with deadline
Querist :
Anonymous
(Querist) 02 March 2011
This query is : Resolved
I am looking for buying a flat in Bangalore. The seller is in Chennai, and has a loan with HDFC for the flat.
The broker says that the sale agreement will state that the transaction has to be completed within 30 days from the date agreement is signed, failing which a penalty of 2Lakhs needs to be paid.
I was thinking of approaching SBI for home loan. But they usually take long time to approve, I heard.
Now I am considering other options as well, like transfering the loan to my name with HDFC itself.
Is this option safe?
Is the penalty clause mentioned in the agreement a normal, usual one? Should I be alarmed?
Please let me know your comments.
Raju Ramparag Gupta
(Expert) 19 March 2011
it is not sale agreement.
it is agreement to sale which is executed before the actual conveyance is done.
Answer of your query.
1) No, it is not the safe option at all because you cannot be sure that your loan will get approved within 30days. they may take more than 30days stating excuses for the lack of documentation from your side.
2) yes, the penalty clause in the Agreement to sell is normal.
Suggestions:
why you are not approaching any Advocate and get the Agreement to sell drafted instead of the broker or the seller?
