[sumzup]

Originally Posted by Repsol

Hello everyone

I am considering buying an apartment in Bangalore. Can someone shed some light on the DOs and DONTs I need to keep in mind from a documentation point of view? If possible, can someone list down the process involved, and the relevant documents?

Hi Repsol,

The list is quite extensive so it is advised that you visit a decent advocate for the documentation who will then give you a list which can be handed over to the builder/developer to comply. Also, if you are going in for a loan then the bank will give you a list of documents that will have to be given by the builder which is more or less comprehensive. If you are buying without finance then it is a must you visit a good advocate through reference. Hope it helps

[shashanka]

Originally Posted by sumzup

Hey Shashanka, you just got saved by your guardian angel. The thing about the transaction as I know it, belonging to the family of developers, is that never ever sign the document whether agreement/gpa/sale deed unless you have the money in your HAND. You did right by not proceeding to register unless the amount got transferred to your account.

My advice to all those here is please remember when you sell your property, the total sale consideration amount should be with you either on hand or in bank (realized) before you proceed to the sub registrar's office for registration. In case, the the transaction is done by cheque, please include the cheque details without fail and include the point " the transaction is SUBJECT TO REALIZATION OF AMOUNT" as if there is any issue with the payment you can then revoke the sale deed without any hurdles. Some of the brilliant advocates don't include this by oversight.

Thanks sumzup,
Perhaps I should add that if this had happened earlier (say 30 years ago - I am 67 today) I would have probably fallen for the buyer's spiel and gone in for the registration & may have landed myself in a right royal soup! As they say, one lives and learns caution!

[Repsol]

Originally Posted by sumzup

Hi Repsol,

The list is quite extensive so it is advised that you visit a decent advocate for the documentation who will then give you a list which can be handed over to the builder/developer to comply. Also, if you are going in for a loan then the bank will give you a list of documents that will have to be given by the builder which is more or less comprehensive. If you are buying without finance then it is a must you visit a good advocate through reference. Hope it helps

Thanks @sumzup for the reply.

I will be going in for a loan. So, the list which the bank asks me to get from the builder, apart from that I will have to check with an advocate on what else is needed?

[sagarpadaki]

Originally Posted by shashanka

In a perfect world I'm sure RTGS/NEFT would work perfectly - in real time! In this case we (seller & buyer) were in Naukuchiatal, the buyer's bank is in Jharkhand (where her agent would follow her instructions re. the RTGS etc) whereas my bank is in Mumbai. And I felt I was being prudent in following my instincts to wait for my bank's confirmation to me that the money had been credited into my account, before proceeding for the registration. And the fact that the buyer insisted we must reach the registrar's office before the RTGS transaction would be initiated, signaled a degree of trust deficit, which made me reluctant to proceed. No "token" had been paid nor "further complications" of "escrow" accounts etc.

You did the right thing. It is better to be safe than sorry when it comes to financial transactions. The buyer not agreeing to wait till the amount is actually reflecting in your account makes this look even more fishy. I would have done the same thing if i was in your shoes

[shashanka]

Originally Posted by sagarpadaki

You did the right thing. It is better to be safe than sorry when it comes to financial transactions. The buyer not agreeing to wait till the amount is actually reflecting in your account makes this look even more fishy. I would have done the same thing if i was in your shoes

Thanks Sagarpadaki,

This is a great thread on the whole gamut of topics related to real estate - and one learns a lot just going through the posts.

[benbsb29]

Can someone recommend the services of a reliable agent/broker in Bangalore for a sale?

[narayan]

Originally Posted by sagarpadaki

You did the right thing. It is better to be safe than sorry when it comes to financial transactions. The buyer not agreeing to wait till the amount is actually reflecting in your account makes this look even more fishy. I would have done the same thing if i was in your shoes

Keen to know, if we are the buyer of the land, is it also safe to just remit the funds to the seller and then go into registration ? What is the seller receives the money and refuses to honour the sale ?

I guess best option is cash or demand draft.

[sagarpadaki]

Originally Posted by narayan

Keen to know, if we are the buyer of the land, is it also safe to just remit the funds to the seller and then go into registration ? What is the seller receives the money and refuses to honour the sale ?

I guess best option is cash or demand draft.

If we are the buyer of the land, then 10-15% of the deal cost can be transferred to the Seller once the deal is frozen. The acknowledgement for the same can be written and signed on the plain paper by both the seller and the buyer with all the details. Remaining can be transferred just before the registration. Yes, there is a certain level of trust and risk involved in this between the seller and the buyer ;in case the seller backs off or starts to postpone the registration date etc etc. Such things have happened and there is always a factor of risk. We should do what we can to mitigate it.

Yes , you are right. A Demand Draft(DD) is the best way to go. For high value running into crores, the charges for a DD is high. Hence people do not prefer to go that way for high value transactions. One option is to split the value into multiple DD's so that the DD charges are low. Cash transactions in white are not allowed beyond a certain limit during the property registration.

[aadya]

Originally Posted by narayan

Keen to know, if we are the buyer of the land, is it also safe to just remit the funds to the seller and then go into registration ? What is the seller receives the money and refuses to honour the sale ?

I guess best option is cash or demand draft.

Cheque is a easier way to do real estate dealings. Once the price is finalised 10% or a reasonable amount can be paid to freeze the deal.

Then on the registration date we can issue a cheque for the remaining amount, a bank statement taken on the day of regitration acts as a supplement for the ability of the buyer to pay. And also the cheque details would be mentioned in the sale deed, the sale legally gets cancelled if the cheque is not honoured, though some amount of patience needed to get it done.

Demand draft is little more safer. But if somebody wants to cheat they can provide a faulty or fake drafts but such cases are not common.

[narayan]

Originally Posted by sagarpadaki

Such things have happened and there is always a factor of risk. We should do what we can to mitigate it.

Yes , you are right. A Demand Draft(DD) is the best way to go. For high value running into crores, the charges for a DD is high.

I asked this because I might be buying some land in the next one year. In the past, my purchases were quite small ticket and with trusted sellers. So I paid in advance, obtained receipts in revenue stamped paper and then went for registration much later.

But with an unknown seller, I would probably hesitate to pay anything in advance.

DD - i think nowadays, for metro location payable DDs issued by your own bank, its mostly free of cost. As long as buyer accepts it, good way to proceed.

Originally Posted by aadya

Cheque is a easier way to do real estate dealings. Once the price is finalised 10% or a reasonable amount can be paid to freeze the deal.

Then on the registration date we can issue a cheque for the remaining amount, a bank statement taken on the day of regitration acts as a supplement for the ability of the buyer to pay. And also the cheque details would be mentioned in the sale deed, the sale legally gets cancelled if the cheque is not honoured, though some amount of patience needed to get it done.

Demand draft is little more safer. But if somebody wants to cheat they can provide a faulty or fake drafts but such cases are not common.

Cheque - I doubt any seller will accept.

[Blr_RK]

Hello,
I paid 1% TDS and downloaded Form 26QB. Now, need to download Form16B from TRACES. While trying to register as a Tax payer, I get the error 'First Name or Middle Name or Surname or Date of Birth is not as per PAN Master'. Only PAN, DOB and last name are entered. Have tried all possible combinations in my name to enter the last name/surname.

Can anybody help with this issue ?
Thanks in advance.
Suhas

[Prafful_Rathod]

Originally Posted by sumzup

The thing about the transaction as I know it, belonging to the family of developers, is that never ever sign the document whether agreement/gpa/sale deed unless you have the money in your HAND.

What happens in case if the buyer has gone for loan then actually the loan disbursal would happen to the seller only after registration. In such cases how do we as a seller secure our side.

[m8002?]

Originally Posted by Prafful_Rathod

What happens in case if the buyer has gone for loan then actually the loan disbursal would happen to the seller only after registration. In such cases how do we as a seller secure our side.

In the case of loans, the loan amount is paid as a banker's cheque which "should" not bounce for lack of funds. Also the agent from the bank gives the cheque to the seller at the registration office during the registration.

The rest of the amount (the personal amount part) is usually taken in advance from the buyer before registration and mentioned in the sale deed.

[NPV]

Originally Posted by Prafful_Rathod

What happens in case if the buyer has gone for loan then actually the loan disbursal would happen to the seller only after registration. In such cases how do we as a seller secure our side.

The Bankers Cheque (s)/ Demand Draft(s) are issued in the sellers name by the financial institution from whom the buyer takes the loan. Details of these instruments are provided ahead of the scheduled date of registration so that the same can be mentioned in the sale deed that will be registered on the date of registration. These instruments will be handed over to the buyer usually by a representative of the financial institution who will also be present at the sub-registrar's office where the registration takes place.

*Just noticed that @m8002 has also responded with this information

[sumzup]

Originally Posted by Prafful_Rathod

What happens in case if the buyer has gone for loan then actually the loan disbursal would happen to the seller only after registration. In such cases how do we as a seller secure our side.

Prafful, even under this condition, the bank will only disperse on 80 or 75% the rest has to be paid by the buyer. Also, there would be a document in form of an sale agreement or GPA that has to be executed stating the details of the sale along with the payment terms. Then again, the bank will give a loan approval letter along with the dispersal terms in it which can be checked before you go in for the final closure.

IMHO, this seems unlikely with the present governing rules and RERA; BTW, is this a apartment you are buying or a villa? Either ways, doesn't look likely as how we can register the property without any consideration passed on. There has to be a advance payment and an document which protects your interest if the transaction goes south has to be in place.

Personally, if you ask me, out of my experience, I wouldn't go in for this transaction at all. Hope it helps