1. It's better to pay partly now and partly later
2. Yes
3. 25 : 75 ratio of payment
How to proceed with purchase of under-construction villa
Hi All, I need your expert advise on the purchase of under construction Villa in a gated community in Hyderabad. The property is an underconstruction villa which is owned by the land owner who has given his land to the builder for construction of the gated community. It will take an year to complete. 1. The owner (an NRI) wants to sell his share to us which is costing about 2 Cr where as he insists the registered value (sale deed value) is 50 lakhs only to escapte long term capital gain tax. I want to increase this amount it as much as I can. What sale deed amount shall i quote given its on 200 sq yards 3500 sft villa. In case I want to sell in future, I want to be safe. 2. How to proceed? Option 1. When should we get the sale deed done- Only after complete construction or immediately by paying 80% of the amount and 20% upon completion (if the seller agrees). Does it work? Option 2: Another option is paying advance of 25% and rest after 100% completion after one year and there upon sale deed execution. I wish to get sale deed at the earliest as the owner is 80+ and waiting for an year is risky. Option 3. What is the usual practice? Any other option so that I can be safe. Kindly advise. 3. Is there should be any tri party agreement between buyer, owner and builder with regard which is builder to commit to handover villa in a year time? Please advise how to proceed. I am stuck
Asked 3 years ago in Property Law
Religion: Hindu
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4 Answers
Don’t agree to make any payment in cash
2) if villa is costing Rs 2 cr don’t agree to agreement for Rs 50 lakhs
3) you need NOC from builder for purchase of villa . Transfer charges to be paid by seller and that there are no dues pending by seller
4) you can enter into tri partite agreement with seller and builder for purchase of villa
5) builder acts as confirming party
6) contact a local lawyer
1. The burden is on the purchaser to deduct TDS at the correct rate. Please desist from suppressing the value. You may get into unnecessary trouble later.
2. It is better to enter into a tripartite agreement (duly drafted by a lawyer) with the vendor and the builder spelling out all the terms and conditions necessary to protect your interests.
3. Please be guided as above.
1. The decision about mentioning the value of sale consideration depends on the circumstances, there is no legal provisions to determine that.
2. 1. The sale deed can be executed after completion of the flat/villa and not for an under construction property.
2. If the sale deed is done for an under construction property then you cannot claim the property at anytime if it is not completed and left in the midway by the developer.
The question is about your safety and to protect your interests in the property and would not depend upon the seller's convenience, hence you are advised to proceed following the legal procedures and provisions of law instead of looking for a short cut method and repent later.
3. The law is that you an register the house property only if it is completed and not for an under construction property.
3. The tripartite agreement is nothing but a sale agreement entered with the conditions thereon, you can very well enter into such an agreeent involving the seller and the developer.
