Which is more legal and effective
Sada
(Querist) 08 June 2012
This query is : Resolved
Hi Team,
need your opinion regarding the a valid legal docs
I, mom and my sister are selling our rights to my Elder brother for XXX amount and due to financial reasons my Brother has agreed to give us a part of the payment 40% and the balance would be paid in instalments (yearly) 6-8yrs...
but he wants to get the property registered by giving the 40% payment.
would you please advise us the best legal & safe document for the balance 60% payment
1)MOU (memorandum of understanding)
2)Promissory note
3)loan agreement
your valuble sugesstion is required
thank you
Sada
Devajyoti Barman
(Expert) 08 June 2012
Incorporate a clause in the sale deed itself that in default of payment of balance amount the sale deed would be null and void.
That would be more effective.
Guest
(Expert) 08 June 2012
As a supplement to Mr. Barman's advice, in addition, you may also add an independent clause in the Sale Deed that resale of the property, if your brother thinks to sell any time before clearance of the outstanding amount, would be subject to full & final settlement of the outstanding dues and with due clearance from your mom and sister.
Sada
(Querist) 08 June 2012
thank you for your prompt response,
my brother wants for take a bank loan and rebuild the property and by including this he may not get home loan, so he has requested us and said that he would sign a MOU with us so we would like to go with the below one doc duely including the sale deed number and the clause (SECURITY
The Borrowers agree to provide the lender with the following property (the ‘security’) as security, until the balance owed under this Note is repaid in FULL)
Other Security Information:
Lender is selling the security to the Borrower(s) - YES
Prior to full repayment of the loan, title to the security will be: Borrower(s)
Lender will get the security interest
1)MOU
2)Promissory Note
3)loan agreement
Guest
(Expert) 08 June 2012
You could well have provided the full information before hand to get appropriate advice.
Further, are you sure that your brother will be able to pay you the outstanding amount within the agreed time when he would also have to repay the hefty loan installment of the bank loan?
However, if you have to select only one of the 3 predecided options, you can opt for pronote. Anyway, wish you good luck!
Sada
(Querist) 08 June 2012
thank you somuch sir Mr. Dhingra
Pronote= promissory note right!!
jayeshmankodi
(Expert) 08 June 2012
promisory note is the right option
jayesh mankodi
Guest
(Expert) 08 June 2012
You are welcome Sada.
ajay sethi
(Expert) 08 June 2012
it is not advisable to register agreement in your brother favour only on recipt of 40%payment . even if you get a promissory note from him if he fails to make balance payment after 6 years you will be running around courts for recovery of your money .
let him make full payment then only register agreement in his favour . he can apply for bank loan for pruchase of property .
malipeddi jaggarao
(Expert) 08 June 2012
Frankly speaking none of your options would work when your brother becomes defaulter. Promissory Note - If defaulted you have only the option of legal remedy.
MOU : what are the contents of the MOU? When the property is registered in your brother's name and if he obtains the bank loan your MOU is against your own actions. Breach of MOU will not help you perhaps even legally.
Loan Agreement: It is nothing but Promisory Note.
The best option is obtain the bank loan in all the names of owners and develop the property. For this you can enter into MOU that repayment will be from your brother's own sources (Let him pay through his personal cheques). Once the entire amount is given the remaining parties, you can register the property in your brother's name.
However all depends upon mutual family relations. If you wish to help your brother and you confidence that he will pay back the money, it is upto all you. In such case you should take a chance honouring the emotional family relations.
J K Agrawal
(Expert) 08 June 2012
Not advisable any of three. The life of all these is 3 year only and you are to play batting up to half of the life. You will have only a piece of paper which is not tenable in Court for around 100 reasons.
Your total idea is out of wits.
is not it possible that he pay to you 40% and purchase 40% part only. I think it will meet out your present requirement.
