Purchasing a flat where the seller hasn’t registered the flat in his name.

[User_abbba8bb]

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User_abbba8bb
PARTICIPANT
February 1, 2025 at 7:59 pm

Hi folks, I am a first time buyer and have found a property in Mumbai that I’ve liked. Had a call with the seller and just realised that the seller has not registered the property yet. The building was delivered around 7-8 years ago and just received an OC a year or so ago. The seller said that him and around 6 other owners from the building had filed a case against the builder which they won (I guess) as they wanted to register the flat at the price at which they bought the apartment i.e. 70-80 Lacs however the current ready recliner rate is almost double the rate and the builder wants to register the flat at the current price. Hence the seller has not registered the flat and paid stamp duty till date. The asking price is inclusive of flat price + stamp duty. They say that once I pay the amount they will directly register the flat in my name once I pay the amount. The society has also not been formed yet. The seller has a signed sale agreement with the builder in place.The agent says this is a tri-party agreement (seller-builder-buyer) and it is a common thing and he has done several of these in that location ( this is Santacruz west if that’s relevant).

It will be my first property and the only one I will ever own. I am not sure of how this tri-party thing works. Also not sure how the bank will treat this as I will be taking loan in around 75-80% LTV.

Does anyone have any idea how such an agreement works if at all and if it is legal and safe, what factors do I need to take care of. I have been trying get hold of a lawyer as well to discuss this but thought of asking here till I get hold of a lawyer. Any comments or advice will be highly appreciated.

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[User_61160925]

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User_61160925
PARTICIPANT
February 2, 2025 at 2:06 am

Too many red flags. I ll suggest to avoid. Have you verified the sellers claims? Have you seen the court verdict ? Have you met with the builder

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[User_43ea0c93]

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User_43ea0c93
PARTICIPANT
February 2, 2025 at 3:32 am

Agree for this only if you can pay the whole amount on registration day.

Otherwise too many red flags. Walk away

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[Brightsourabh3422]

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Brightsourabh3422
PARTICIPANT
February 2, 2025 at 6:57 am

My situation is somewhat similar. It’s property by Sobha builders in Bangalore. The seller has bought the property directly from builder but not yet registered.

The agreement is a tri partite agreement with seller and builder. This agreement would ensure transfer of ownership to current buyer.

Biyer can then go for individual registration. I have seen this case with many owners living in the society.

But due diligence is necessary before proceeding I’d say

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