Legal Question in Real Estate Law in India

I have purchased a property from an NRI which is yet to be registered. I did an MOU with the seller for total sale consideration of 65 Lac inclusive everything, all deposits and outstanding interests/costs.

At the time of assignment agreement there was a balance of 3.4 lac which is to be paid to builder at the time of possession.

Since I was going for bank loan, we agreed that seller will not clear his balance of 3.4 and I will ask my bank to disburse this amount directly to the builder. and remaing amount after adjusting 3.4 lac would be disbursed to the seller.

But this deduction was not explicitly called out in the MOU or the assignment.

Further the assignment agreement says that all the balances after the assignmemt agreement will be paid by the assignee.

I have all emails where this is clearly captured that I need to pay total 65 all inclusive plus the registration charges.

Now the seller is asking me to pay the balance to the builder aprt from the MOU amount.

Please suggest how to close this. I am sure I am right and he as well understand this, but somehow he is trying to make some additional money.

Do I ignore him or do I need to make sure that I close this completely.


Asked on 7/11/13, 1:11 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

11.07.2013

Dear Sir / Madam,

In property matters, it is always advisable to close a deal completely, to avoid any further misgiving or misunderstanding between the parties.

If the retention of Rs. 3.40 lakhs was not explicitly spelt out in the MOU and the assignment deed, subsequent emails between you and the seller on the price consideration are meaningless; since the total agreed purchase consideration between you and the seller will be Rs. 68.40 lakhs. It remains the seller's responsibility to settle the builder, if the seller still owes the builder any money.

Registration of the property means payment of prevailing Stamp Duty as on the date of registration. If the seller had not paid the Stamp Duty at the time of his purchase of the property to the Government, and the Government record shows arrears in the name of the seller, you should adjust and recover the prorata Stamp Duty which was payable by the seller, from his final payment of Rs. 3.40 lakhs . I repeat, it remains the seller's sole responsibility to settle the builder.

Regards,

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Answered on 7/11/13, 1:59 am
uttam Tibrewal

dear client...

need to go through ur agreement and MOU kindly mail me at [email protected]

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Answered on 7/11/13, 2:51 am


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