No need to sign the indemnity bond
necessary to peruse documents cited by you to advice further
Property transfer case paper work query
I am buying plot. The Builder is TDI, Mohali. Its a resale property and its a transfer case. I got Transfer Docs and I have queries there: 1. In Docs required, one point is "Agreement Execution" . And there is another point "If executed, need to be endorsed". Que 1. What does it mean by "need to be endorsed"? Que 2. if Agreement Execution means "Agreement to Sell"? 2. One of the paper is "Indemnity Bond furnished by Transferee". I am unable to understand this paper. Also not sure , in Fill In Blanks , where buyer details is to be filled and where Seller details is to be filled. INDEMNITY BOND This indemnity bond is made at ___________on this__________day of ________2014 BY Mr./Mrs./Ms.__________ W/o & S/o ____________ R/o __________________, hereinafter referred to as the “EXECUTANTS” In favour of M/s TDI INFRATECH LTD (FORMERLY KNOWN AS M/s. TANEJA DEVELOPERS & INFRASTRUCTURE. LTD). A company registered under the Companies act, 1956, having its registered office at 10 Shaheed Bhagat Singh Marg, Gol Market, Connaught Place, New Delhi, here in after referred to as the “BENEFICIARY”. WHEREAS: 1. Mr./Mrs./Ms.__________________, S/o/W/o/D/o Sh.___________________ R/o ____________________________, had made a booking for a ___________sq. ft./sq. yd. flat/plot in the Beneficiary’s future projects at_____________,acknowledged vide receipt No.______________ Dated._______________, 2. Mr. _________________ requested the Beneficiary, to record the name of EXECUTANT in respect of the aforesaid booking. NOW, THIS DEED WITNESSED AS FOLLOWS: 1. That in pursuance of the aforesaid booking and in consideration of the Beneficiary, agreeing to record the name of the EXECUTANT. That the EXECUTANT, shall at all times hereafter indemnify and keep indemnified the beneficiary, against all claims, demand, action, proceeding, liens, damages, costs, charges and expenses, which may be brought a command against the beneficiary, on which the beneficiary may or may have to insure or may have to suffer, as a result, directly or indirectly, as a result of effecting/subsisting the name of the EXECUTANT, against the above booking. 2. The terms EXECUTANT include his/her heirs, successors, executors, administrators and assigns. IN WITNEES WHEROF, The EXECUTANT has signed these presents on the day, month and year herein above written. EXECUTANT (BUYER)
Asked 3 years ago in Property Law
Religion: Sikh
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4 Answers
Dear Sir/Madam,
1. Endorsement means signing at the back of the instrument for the purpose of negotiation. In the instant case, this particular agreement must be endorsed means that it must be validated.
2. Agreement execution simply means the sale is executed and you have purchased the property.
3. Indemnity bond furnished by transferee means that the seller must transfer to you an indemnity bond. Indemnity Bond is a bond indemnifying an obligee against loss that arises as a result of a failure on the part of a principal to perform as required. For example, a lease bond guarantees that a tenant will make his/her rental payments.
4. This indemnity bond must be filled by the seller.
Thank you,
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- Indemnity bond is the guarantee for financial reimbursement , in case any harm caused by illegal actions on the side of the bonded party.
- If seller is executing indemnity bond in your favour, it means that he is giving guarantee to you that in the event of any loss etc. he is ready to refund the amount received by you .
- Executant means the person who is making this agreement and singed it .
- No agreement execution is not meaning in the sense agreement to sell , this agreement may be any agreement like indemnity bond , agreement to sell etc.
The indemnity bond on the basis of the contents of the deed it can be understood that the seller/transferee is indemnifying the builder against all the losses that he may incur in future in case of any dispute that may arise due to the cancellation of the booking and transferring the booking in favor of another prospective buyer.
If there is no sale deed registered on the name of seller who has just entered into a sale agreement alone with the builder and is reselling the proeprty to you rather transferring the same to your name by a tripartite agreement along with the builder, then the requirement of an indemnity bond had been mandated by the builder as per his company's policy.
In fact this bond shall be executed by the seller in favor of the builder and you as a buyer need not fill up your details except sign it as a witness.
To clarify more on this and render a further proper opinion, it would not be possible until the relevant papers are perused or scrutinized properly.
You may obtain a legal opinion from a local lawyer so that you can be safe about your purchase if recommended by the lawyer you may consult.
