I got an offer to buy a flat, through a broker-company executive, from a person who booked the flat which is under construction in Chennai and is expected to be completed by Dec-2014. Let us name this person as owner. He has agreement of construction with builder. Now, the owner is paying for his flat at various stages of construction of this Gated-community apartment with service charges to builder as per the schedule in his agreement. The real owner is his son. Owner has got power from his son to do all these transactions. He borrowed loan on this flat from a bank and paying the needed amounts from this loan account. Let us say "s" be his selling price, "p" be the amount already paid to builder, "d" be dues to bank and "r" be the remaining amount to be paid to builder. Owner consulted the builder about the possibility of transfer of flat to anyone else through selling. According to owner, builder said it is possible.
The owner and broker suggest me the following procedure, if I agree to buy:
1. I need to pay "d" to owner so that he will settle dues to bank and get the sale seed and other documents, if any, from bank
2. Owner will pay "r" to builder and get no dues certificate
3. After 3 months I need to pay "s - d" to owner
4. Get ownership of flat transferred from owner to me through builder
5. Get both UDS and the flat registered
Now I request you to kindly answer my questions given below:
1. What are the documents I should get signed by owner/his son/builder and at what stages?
2. What are the documents on which I should sign?
3. In what way I should be careful about this transaction so that I will be safe at the time of possession of flat and in future?
4. Is transfer of construction agreement possible?
5. Is registering an incomplete-flat necessary and/or legal?
Thanks.
