Yogi (sr asscoaite) 27 January 2016

Flat resale process in mumbai

Dear Sirs,

I am selling my flat at Kalyan, ( first owner with no loan) via broker to buyer. Party is in need of taking bank loan of 70% & will pay 30% amount from his own contribution.

I intend by execute SALE DEED post receiving entire consideration amount (buyer’s contribution + loan disbursement), kindly guide how to do we ensure safe proceeding

1. Am I mandate do proper registration of MoU with party with detailing payment schedule & respective terms, condition and time limit?

2. Do you suggest, after MoU is registered and receiving buyer’s contribution amount, get in AGREEMENT OF SALE, so buyer can submit case to bank for technical verification & disbursement approvals. To my information AGREEMENT OF SALE will be valid to go to next level of SALE DEED only if all payment & other terms and conditions get fulfilled.

3. In case of resale, does banks in Mumbai – Kalyan area, does disbursement of loan amount after agreement of sale gets signed. I guess they do it in case of direct purchase from builder but i am not sure about resale case.

4. So to my understanding workflow will be like this MOU--> àget entire amount of buyer contribution ->>>à AGREEMENT OF SALE - >> à Bank approval and loan disbursement on seller’s name >>>à SALE DEED

If this is not correct understanding or process not followed in Mumbai area, kindly guide how this transaction needs to proceed ensuring as a seller, I get full consideration amount before singing off / handover of agreement / sale deed to party.

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5 Replies

Mayur shikhare 27 January 2016

The Correct procdure is as follow:

1. enter into a MOU with all the terms and conditions mentioned in it and please specify timelines as it is extremly important.

2. once the terms and conditons are fullfilled and the amount of 30% received from the buyer enter into a registered Agreement to Sale.

3. Buyer will process the documents for loan with registered Agreement to sale and other essential documents like photo copy of chain of documents.

4. Once the bank sanctions the Loan they will ask to deposit the chain of documents with them and issue you the balance payment.

5. After the payment they will ask the buyer to enter into a Sale Deed which again they will take in their custody.

Yogi (sr asscoaite) 27 January 2016

Thank you Mayur ji for your quick response. Pl help me with further queries.

1. Orginial copy of AGREEMENT OF SALE, will be taken by buyer after singing it ? Is it safe to do that. How can i protect my claim of ownership if buyer failed to meet any clause of agreement in future. If you can help me with caluse of MoU & Agreement of sale will be a great help

2. What is standard timelines as per law we can put in to agreement for final payment due. broker told me 45 days from after signing of agreement of sale. What penatly caluse we can put if party fails payment due to any x-y reason , of standards of pentaly clause %.

Reagrds

Yogesh

Mayur shikhare 28 January 2016

It is safe to part with original, but remember do not part with possession till u receive complete payment. Time lines of 45 days will be enough. buyer will be more concerned then u. As you will have possession, 30% amount, and original title documents, so don't worry about if buyer doesn't fulfill anything he will be worried u should not be.