Manohar Moopanar (Manager) 26 December 2011

Missing 1st agreement between builder and 1st owner

I am planning to buy a re-sale apartment in Mumbai from the 3rd owner. The 1st agreement between builder and 1st owner (1979) is missing from the chain of agreement but society's share certificate shows the chain and society letters (noc & transfer) states the 3rd owner as current owner.

The Bank states the Title search report is clear is ready to sanction the loan if I provide Indemnity for missing 1st agreement which was signed between builder and the 1st owner in 1979

Rest all the documents are present.

I require guidance on below:

1. Does society's letter and title search suffice for missing document from 1st owner? Title search by the bank is clear.

2. In future when I have to sell the property would I have any legal issues selling it?

3. Any other liablity which could arise in my interest.

4. Does issuing legal notice, getting indemnity from 3rd owner and filing of FIR reduce my liablity?

5. Should I proceed with this sale or cancel this offer?

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4 Replies

ABHIJEET PARIKH (Bcom LLB MBA) 26 December 2011

Dear Manohar,

Following is d reply to ur query

1.Prima facie bank does their due dilligence correctly although it is true society letters donot suggest title of property a share certificate does indicate some right I would advise u too go 4 a public notice in some leading newspaper stating lost of documents also inform abt entire details of apartment a 30 days time period will be sufficient for any 1 to comply . Non complaince of such notice , it will be treated documents lost. and u can go ahead wid the deal

2. If u followe above steps its unlikely that such thing wud happen

3. no liablity is to arise

4.To be on safer side get the indemnity signed n register from 3rd owner no need for FIR instead a public notice would be better

5.by following above steps u can proceed wid the sale.

regards

Abhijeet

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Manohar Moopanar (Manager) 27 December 2011

Dear Abhijeet, Thanks and your response is very succinct and helpful.

As the 1st agreement is missing. Will it help if I have Index II Document for 2nd and 3rd Agreement and NOT for 1st Agreement? or its not worth the effort?

ABHIJEET PARIKH (Bcom LLB MBA) 27 December 2011

Dear Manohar

Public Notice will suffice

But it is also important for u to draw attention of the fact that 1st set of document r lost

this should very specifically mentioned in your sale deed too.

regards

Abhijeet

Hardik (Consultant) 23 November 2012

hi, if in case there is no agreement between first owner and builder at all. for that matter non of the flats in whole building have the first agreement. should i go ahead for purchase of the same or not.

please guide.