Sale Agreement Process

[viksat82]

Hi,

In this case how the Buyer is in Heavy risk, Since Buyer is giving the Post dated Cheque with Contract agreement (Mentions the Token Advance + Post dated Cheque) and Notarized. Till the actual sale deed is not happen the Seller can't realize the Cheque considering the future date.

Didn't get the point what you want to safeguard from Buyer's perspective.

In your previous post you have mentioned to give cash advance or token advance which is not post dated in addition to post dated cheque.
If the sale process did not happen how to get that money back ?

I agree with you on the post dated cheque it cannot be realized until that date.

[viksat82]

Hi

Nothing is one sided market. Basically all the sellers are surrounded by the Brokers or proxy sellers. They are the one's who try to take the advantage from both seller's & buyers for their personal vested interest. You need to make sure, you are negotiating with the actual seller.I

We assume the other party is actual seller while negotiating the price. But we never know that guy might be one more broker.
Of course we can ask for the paper and note down the actual owner name and ask for his id and address proof. Even then it is not guaranteed that is the real owner, because he might have the old paper which is already sold to someone else will come to know only when see the EC,
or he might already have some other agreement on that. I have seen many people got cheated by the real owner like selling the same property to many persons. This may not be case most of the time. But still there is a chance that we might fall into this type of trap.

[msn1270]

Anyone can sit with you claiming he is the owner. Just Verify the Latest EC Copy & the last transaction date of the Sale deed.
to confirm the owner & ask for their Photo ID and Address proof to validate the same, that itself shows their reality.
If he is not the actual owner, he simply walks out of the discussion.

[jackalbda]

For potential sellers, I liked the idea , which one of the sellers did , for which I was on the buying side. He told that he will write an agreement but there will be a clause that only with whoever he is making an agreement , he will do the sale deed. Meaning, the clause where it mentions that , seller is ready to make the deed with the party or "the one who he suggests" , is removed. He just wont accept token advance at all from anybody , but he is ready to make the agreement and its usual process.

[msn1270]

That's how seller's can avoid Brokers.
Nowadays too many brokers pose themselves as sellers and pay an advance of Rs. 50K or 1 lakh and go into an agreement with the sellers
with a 90 Days lock in period. In that 3 months they find a potential buyer and sell it with more margin.

[viksat82]

For potential sellers, I liked the idea , which one of the sellers did , for which I was on the buying side. He told that he will write an agreement but there will be a clause that only with whoever he is making an agreement , he will do the sale deed. Meaning, the clause where it mentions that , seller is ready to make the deed with the party or "the one who he suggests" , is removed. He just wont accept token advance at all from anybody , but he is ready to make the agreement and its usual process.

I agree that is good idea to protect seller from broker. Can anyone suggest the similar type of class that can be added in the sale agreement to protect buyer from brokers. And also protect the buyer from any previous agreement that seller might have which we might not come to know.

Example: Seller makes agreement with the broker and broker finds potential buyers and make a deal or agreement between seller and buyer using seller as rubber stamp and hiding the agreement happened between seller and the broker for broker's vested interest.

[manjunath.2k]

Hello msn1270,
I agree with you that we need to avoid any cash transaction and to have the entire property value on the sale deed.
BUT, the problem is I am unable to find any seller who is willing to sell with the entire value on the sale deed ..
of course the reason is the seller has to pay tax for the entire value, which will be almost twice the guidance value.
and most of the agents/brokers do not encourage this good practice..
I would like to know from the members, how to deal in this situation.

In My opinion, If you can't mention the full amount in your sale deed, better avoid the transaction.
Nowadays everywhere IT Dept is tracing the money flow. if your transaction value is more than Rs. 30 Lakhs,
your income source will be scrutinized against the transaction vale. Whether you pay in Legal way or illegal way,
can be concluded easily & you may end of up in trouble.

That is the reason for drop in the no of transaction at the sub-registrar office since last one quarter.
Think twice before going for such deals here on wards.

if you still want to go with cash component as part of your transaction, you are also doing fraud.