My father-in-law (FIL) is trying to sell his property in Mumbai. He is selling it to someone who lives in the same society.
Here is the situation: The buyer is pressurizing my FIL to take payments in part. He has given a check of Rs. 15L without any document signing, etc. We have not yet deposited it. Then he was saying he has cash that he wants to give as advance payment. Rest of the money is being arranged through his PF and (maybe) a bank loan. He says by end of June he will clear all the payments and ONLY then we can go for registration. In fact, the buyer is telling me that all big property deals the payments are made in parts - which I find is hard to believe. This deal is valued at less than 60L.
In priniciple, till we register the property I know the Buyer cannot get the flat in his name. But what I'm worrying is he is trying to rope us into taking money in parts and then he will either default in the other payments or keep delaying the other payments or he will ask us to reduce the price on the flat...and till that time I feel we will not be able to sell this property to anyone else. And the other thing I worry is once we take some money he will start pressurizing us to do the registration or may even emotionally blackmail my FIL saying he's paid most (say 70-80%) of the payment already.
What are my legal obligations if we accept the money from him without registration? And what would it take to reverse the transaction if it cannot be completed. I also suspect that the buyer may ask for interest payment on the money we deposit in our account before the deal closes or falls through.
My opinion is that we don't accept any payments from the buyer till he has ALL the payments ready to be disbursed. However, my FIL is keen to accept the checks and even deposit them - as he thinks that there won't be any issues.
Can you legal experts please provide your inputs on this? Should we INSIST on full payment or take part payments?
Appreciate your candid and quick responses.
