How to control Midman\reseller\agremnt holder in realestate?

[mybdaprop]

Hi All,

I have been seeing only midman, agreement holder selling the plots/properties in any area you go in bangalore...

These mid man are relatives of corrupt government officials, corrupt politicians... and they make use of the corrupt black money to hold on to agreement with owners..

These junk middle man come to owners who want to sell there property and tell that he is genuine buyer and enter into sale agreement with owners by giving 1 to 5 lakhs... and the validity of agreement to complete registration will be 3 to 6 months...

During these 3 to 6 months these junk middle man posts many plot sale, property sale advertisement in all possible property sites.. and tell them-self as direct owner...

Once normal salaried/Proffesionals come to enquire for property, they indroduce them as agreement holder, and these junk middleman only decide price and don't show owner,

even if you are ready to buy they will show owner only at the time of registration, all financial transactions, price finilasation all you have to do with middle man...

Actual real owner is just like rubber stamp as he will come during registration to complete the process of registration...


In this Process these middleman/agent will block all the properties on sale in any area by entering into agreement with owners... and create artificiall scarcity and magnify the gap between real buyer and real seller...


Actual owners are innocent and thy fall on trap for this cruel humbugs and they will be starnded in the middle without money and after waiting for 3 to 6 months long time thy will settle for what ever money that midman gives to them, as they are left with no option than going to court...


Advice For Owners

So its humble request to all owners who are selling there property, before entering into any sale agreement make sure the property seeker is an official, and check their identity card, employment details, never get into agreement with people who says them selfs as agent or busniessman...


Advice for buyers

Never buy property from agreement holder or reseller, as you will loose your hard earned money for very inflated rate... only make transactions with real owner...

If you come across any midman who is making transactions on behalf of owners and inflating unrealistic price... go to that area police station and lodge a complaint to create healthy society,,,

Note down the name and mobile number of middleman/reseller/agreement holder who is making proxy transactions and lodge complaint in Lokayukta and Incometax Vigulence department online...


Until these people are not controlled, the big gap between black money holders blocking property and creating injustice for real home needy family people will not stop...

[greenday]

These resellers or middlemen are nowadays everywhere. It took us close to 6 months to buy a plot, as 90% of the plots on sale were usually held by these resellers (mostly affluent brokers) and we were not at all interested to buy from them at inflated prices. As a buyer, the rule we followed was to neglect them completely even if the plot/price looked attractive as we did not want to get into any complications during the deal and moreover we wanted to directly deal with the owner.

[mybdaprop]

greenday, Thanks and you are a real Indian Citizen. and a very smart choice to ignore midman,,, .. Hopefully all people(owners and sellers) can learn something out of this blog ...

We keep talking about corruption for decades , and recent Anna Hazarea movements, untill and unless all responsible citizens decide to act like what geenday did...our society will be suffering..

If we all decide and eradicate black money in RealEstate our country will become prosperous, Roti Kapda Makaan for all families will be fulfilled from the grasp of these midman/s...

[jpnagarprop]

For a seller, it is very difficult to recognize whether buyer is genuine buyer or re-seller. Sellers should make a point in agreement that final sale deed will be executed only with agreement holder name. Now that will put a break on re-sellers to start finding new buyers.

[greenday]

Yes, you are right. Usually the standard sale agreement template has a "Nominee" clause which will allow the buyer to nominate another person to buy instead of him.
@mybdaprop: thanks for your nice comments

[mybdaprop]

jpnagarprop has made a good point that all owners should note...

Owners should go through sale agreement wordings very very carefully and remove the nominee clause.. and make the person making the agreemnt should register the property..

[Somashekarn]

mybdaprop

Your comments are quite informative. Let me add some more points

As a buyer
1) Never be in a hurry. A Real estate investment is a high value transaction. You need a minimum of 2 months to complete the transaction.
2) Take 10-15 days only for due diligence. Take a copy of original registered sale deed from the buyer. Do not agree to any sale agreements etc. Only the sale deed will have the owner's name.
3) Take a EC (Encumbrance Certificate) from the Sub registrar. Ask for a copy of Khata and Latest property tax receipt.
4) Engage a good lawyer to validate the documents.

Majority of these process items are taken care of if you are going in for a bank loan. But in case you are buying using self funding ensure that every step is taken care of. Do not agree to any middle man deals. They are a recipe for disaster both financially and mentally.

[Chandu]

My few points.

1) Don't be in a hurry to buy or sell - if that is possible.
2) make best use of print media and internet to search assets.
3) Have multiple interactions with seller/buyer - to identify if they are genuine owners.

its really heart burning to give 3 to 4 lakhs for a tout

[mybdaprop]