Buying Flat from Landowner Allocation
2 years ago
I have booked a flat from a reputed builder at Kolkata which is from the Landowner Allocation. When I have applied for Home Loan, bank said that they can only disburse the amount in the landowner's account. But the builder wants the money in their account. Hence the Bank had requested for the following documents which the builder is taking time to give.
1) Sale Agreement between Landowner & Builder(In this case wife of the Director).
2)Registered Power of Attorney given by the landowner to the builder.
3) Landowner to sign personally and third party will join as confirming party in Nomination agreement & Reg. Sale Deed favoring buyer.
Builder has communicated they would provide the above documents(1 & 2 mentioned above),but the landowner would not sign in the Sale Agreement nor in the Sale deed, only the builder would sign(As stated in Power of Attorney) on the landowner's behalf in both the documents.
I have already paid my share to the builder in their account. Please suggest whether I would go ahead with this deal or back out or any risk is associated if any heir of the landowner claim their share in future.
Also would like to know if the builder would return back the whole money which I have paid to them in case they are not able to provide the sufficient documents required by the Bank.
Anirban Chatterjee
Responded 2 years ago
B. Land owner to Builder PoA & Development Agreement should be registered.
C. Builder can sign the Sale Agreement if it has a registered PoA authorizing it to do so.
D. Return of money depends on terms of allotment letter or application form which you may have signed and submitted (as sale agreement has not been executed yet)
E. Check if the Builder has taken WB-HIRA registration or not before going ahead, though the Act has been recently struct down, but it was applicable at the time of your application
Tanmoy Chattopadhyay
Responded 2 years ago
#RealEstate
#freeLegalAdviceOnRealEstate.
About returning the money, it depends on the agreement for sale that you would have signed which might have have the cancellation clause.
If under the POA the builder is authorized, he can sign on behalf of the land owner. You will have to verify the POA documents. The builder subject to terms of the agreement after deducting the token amount has to refund the advance money.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
It is normal for the bank to seek these documents while disbursing loan amount. They do it in order to reduce risks. If the POA has been issued in the builder's favor to sign on behalf of the landowner, he can, but please verify whether the builder is duly authorized in the POA for the same or not, if not done ask the landowner to sign. If he doesn't agree, back out from the deal. Builder is liable to return the money, but it will be subject to the agreement terms. He can deduct some token amount.
Pardeep Kumar Dhiman Dhiman
Responded 2 years ago
Ankur Goel @ Complete Law Shield
Responded 2 years ago
try different bank.
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