Purchase of under-construction Investor flat

Hi All, any suggestion from experts? Thanks in advance.

Yes, Tripartite agreement is necessary for this OTHERWISE investor cancel the Agreement for sale with Builder, And then U direct registration Agreement for sale with builder.

I am having the same situation here...Investor wants to have the Pay Order from Bank (Home Loan) during the registration...But is this the right way...How can bank will release orders before registration??

Mr. Bharat,

we are executing a tripartite agreement among the developer, investor (transferer) and Me (purchaser) for buying a flat. I have already signed the agreement and have given copy to the bank for legal evaluation. In may case payment would be made to the investor directly (95% of the building completed) and rest to the builder upon possession.

However, upon legal evaluation, the bank expert have opinionated to include following line in the agreement:

"There is no Agreement or any writing whatsoever executed between  the investor/ transferer and the Developer in repsect of the Flat No. XXX"

Though the developer has  given a allotment letter to the investor..

My query is whether including the above line would benefit...I dont think there is any agreement between the developer and investor...and whether the above line is required..

Thanks

Hi Pranav,

From which bank did you get the loan? I tried with Axis Bank, they sanctioned, but after Agreement to sell (Tripartite), they denied for disbursement.

Their lawyers giving reason "Investor has not done registration with builder, and saving Stamp Duty...".

My loan processing fee is gone as well.

 

Hi,

I need help in this case please.

I am also purchasing investor flat and we are executing a tripartite agreement among the developer, investor (transferer) and Me (purchaser) for buying a flat. Investor is having allotment letter from builder but not done registration and stamp duty with goverment. And payment need be given to both Investor and builde partly as per agreement. My question is Does bank disburse the money in this situtation and if yes then whether bank will disburse two separate payments one to builder and one to investor?

Regards,

Priya

Hi all,

Kindly note that I could find only HDFC bank which gives loan on Tripartite agreement. So do not waste your time and money with other banks. There can be other banks, but you may need to work hard to explain them what is tripartite agreement. Banks which certainly DO NOT provide loan are SBI, ICICI, AXIS.

The one mandatory requirement is that Investor should give an Indemnity Bond to the bank on Rs.300 stamp paper, stating that if in future any liability occurs for paying stamp duty due to changes in govt. laws, he will pay it.

The format of the bond will be provided by HDFC bank only.

Also, take care while you get disbursement from the bank.
1. They offer insurance with premium amount based on the cost of property and the age of purchaser.
2. They include 80% of that premium into your loan, rest 20% you will pay by cheque.

Now the thing to take care is that never take disbursement at the end of month, because the EMI starts right from the next month when loan cheque is handed over. Postpone till the beginning of next month. Otherwise EMI + processing fee + insurance premium, all will be deducted the next month and you may get into narrow situation.

By postponing, you can actually shift the EMI to further next month, so that only processing fee and premium contribution is deducted in that month.

Feel free to contact me if any further clarifications required. I am not legal expert, but can share my recent experience only.

Hi Ashutosh/ Priya,

I got the loan against the tripartite agreement from Axis Bank..My agreement was made in the month of september 2011 and if I am correct some ruling has come during Nov-Dec, which made registration/ payment of stampduty compulsory only discourage investor selling of property. I think this is resaon why most of the banks are avoiding to disburse on this ground.

At my time there was no such ruling, hence made it through. There is always some way to avoid this. I think one can enter directly in agreement with the builder wherein the investor cancels its alottment letter. Investor gets the cash as he is interested in this only and you pay white/ cheque directly to the developer (no tripartite agreement).

In my case investor only wanted to go thru a tripartite agreement, though the builder in the past has done agreement as discussed above with one other investor.

Please make sure to take in original all the receipt of payments, allotment letter/ or canecellation of alottment etc in original and the same needs to submitted to thelending  bank of yours. It is bit painfull wherein you need to call your developer time to time for arranging the same.

regards,

Pranav