Rajan (analyst) 06 September 2012

Buying a house that is already sold to another person

I am considering a property purchase which was found through one of my friend. The owner of the property stays in US and he has bought this flat 2 years back as an investment. The builder and the property owner says that this property is still not registered on the original owner's name and only a sale agreement is made. The builder says if I do the down payment for 20% of the value he will cancel the earlier agreement and make a fresh agreement in my name and also make a sale deed which will be registered in my name.

I am little hesitant if this process is right. What does cancelling of agreement mean? Can the builder cancel agreement just by an email communication from the current owner, who is in US or should he sign some documents? Should the builder mention in my sale deed/agreement that this property was initially sold to someone and now he has cancelled it and selling to me?

I just wanted to know what are the steps I need to follow to make sure I dont get into any trouble. Any advice would be really helpful and highly appreciated.

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5 Replies

Bhawani Mahapatra (Law Officer) 06 September 2012

Mr. Ranjan

No title of property can pass to other, unless the title holder executes a registred sale deed in favour of the intending purchaser. All other means of conveyance like agreement/power of attorney etc are not tenable before law. If the propesed flat is not transfered by the builder through a regd. sale deed,, means the title still lies with him, and he is very much entitle to transfer the same to any one he likes. But if there exitst any agreement to sell the same with any third party, you need to get it cancelled with concent of both the parties, so that no one can claim any interest over the said property in future. All transction should be made in writing.

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Rajan (analyst) 06 September 2012

Thanks Mr Bhawani Mahapatra. The builder says he will execute a registered sale deed on my name.

My only concern is whether he can register the same house twice on two different people? Is there a way to check it?

Warm Regards

Rajan

prashant bhoyane (Advocate) 06 September 2012

question is...,

I am considering a property purchase which was found through one of my friend. The owner of the property stays in US and he has bought this flat 2 years back as an investment. The builder and the property owner says that this property is still not registered on the original owner's name and only a sale agreement (whether the aforesaid Agreement is registered) is made. The builder says if I do the down payment for 20% of the value he will cancel the earlier agreement (on what ground the builder will cancell the agreeement ...event of default...? ) and make a fresh agreement in my name and also make a sale deed which will be registered in my name.

The points which are in BOLD needs to be understand first before forming opinion

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Rajan (analyst) 06 September 2012

Thanks Prashant. The said agreement according to the builder and the original purchaser is not registered as he has brought just for investment purpose to sell of with later date. But is there any way I can check to see if its registered or not?

Can someone register same property twice to two different people?

Warm Regards
Rajan

prashant bhoyane (Advocate) 25 October 2012

No registration of the one unit to two different individuals is not permitted. in such senario you are requested to get cancelled the first agreement and then go for execution and registration of the agreement.

For any clarification on this issue you may call me on my cell No. 9890 614816

Kind Regards,

Prashant Bhoynae