Sach (Manager) 09 December 2010

Buying a investors flat basis allotment letter

Hi,

I am very grateful for this useful website.

My issue:

I am purchasing a UNDER CONSTRUCTION flat in mumbai western suburbs from an investor. The investor has an ALLOTMENT LETTER in his name from the builder. I visited the builders office today along with my lawyer and we checked ALL documents (IOA, CC, Title, Development agreement, approved floor plan) and they were ok. The builder also mentioned to me that the sale agreement copy would be available by early Jan 2011.

Further the work on the project site is on way at the 2nd basement level (still not reached plinth level). This is a land purchased from a pre-existing CHS and amalgamated with the adjoining SRA development plan (BEING DEVELOPED BY SAME BUILDER).

My question is that given that the documents inspection went OK and the sale agreement document is not yet ready, IS IT SAFE FOR ME TO PAY OFF THE INVESTOR AND GET THE NEW ALLOTMENT LETTER IN MY NAME?

MANY THANKS

Reply Follow

5 Replies

Adv Akhtar Ali Sheikh (Property Law Consultant) 12 December 2010

I am afraid on the basis of allotment letter alone you may not purchase the flat because the first agreement with the builder compulsorily must be registered and stamp duty paid. You may purchase from the investor and you a\will be eligible for stamp duty rebate within one year of the date of original purchase by the investor.

Adv. Akhtar Sheikh

CHANDRASHEKHAR (ENGINEER) 14 December 2010

MY ADVICE

DEVELOPER WILL OBTAIN ALLOTMENT SURRENDER LETTER FROM THE INVESTOR .THEN YOU MAKE AGGREMENT WITH THE DEVELOPER.DEVELOPER WILL GIVE SIOME CONSIDERATION TO THE INVESTOR FROM THE CONTRIBUTION YOU MAKE.YOU CAN ENTER IN AGGREMENT WTH DEVELOPER DIRECTLY ONCE ALLOTMENT OF EARLIER INVESTOR IS CANCELLED

Bharatkumar (ADVOCATE ) 15 December 2010

First, Builder cancle the Allotment Letter and all receipts of the investor then builder registered a Agreement for Sale with u directly. OR, Builder make a tripartite agreement with u and investor.