deepak 07 September 2020

Selling land to joint buyers

A group of 3 individual buyers have approached me to jointly buy my plot. What kind of sale agreement is better?

a) Mention only 1 of the 3 as the buyer who will be responsible on behalf of the 3. Still the payment will be from 3 different cheques.

This way, in case of breach of contract it will be easier to legally handle only the one buyer.

b) Mention names of 3 individual buyers in agreement. Each buyer will give his own cheque to me for his portion of the payment.

This way the transparency is more in case of any bank scrutiny. Since 3 joint buyers are there, three cheques seem more plausible.

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4 Replies

Dr J C Vashista (Advocate) 08 September 2020

All 3 prospective buyers of the property (vendee) shall be termed as Second party while drafting agreement to sell.

Seek professional services of a local prudent lawyer for better drafting and presentation of the agreement covering all legal aspects necessary to protect your interest.

G.L.N. Prasad (Retired employee.) 08 September 2020

Generally, a seller is not bothered about purchaser number or status, and they are jointly and severally responsible for the execution of the contract agreement. THe only precaution is handover the possession only on receipt of full sale consideration, and in case of development for flats/houses, engage a competent advocate on turn key basis to safeguard your interest.