How to Sell Property Under Construction | Direct Transfer of Under Construction Property
How to Sell Property Under Construction : There are many way to sell your property under construction.
Direct Transfer of Under Construction Property
Transfer of Under Construction Property is one of the most complex topics in real estate. It is situational and there are no right or wrong answer. Transfer of under construction property depends on multiple factor like construction status, home loans of a seller, builder or landowner share etc. The buyer is in a dilemma on how to make payment and what is the right procedure to execute the deal. The situation is complex if the occupancy or completion certificate is issue, but the property is yet to be register. Another confusion is who will bear the cost of VAT and service Tax. i.e. buyer or a seller. The right and the best way, which is being followed for transfer of under construction property is through tri – party transfer deed or assignment deed.
Legal Transfer of Property Title
There are the various confusion between the government departments on the transfer of property title. At a macro level, there is a supreme court ruling on the same subject. A property title can only be transfer deed can only be execute.
When the property is construct and ready for possession. In short, for under construction property the title of the property rests with the builder or landowner till sale deed or conveyance deed is not execute in the favour of a buyer.
High Risk Transaction
Thus, the direct transfer of the property is high risk transaction. The entire transaction rests on builder NOC and seller always insist on direct payment from a buyer to seller. In the case, in which seller got 3 NOCs issued foe the transfer of Under Construction Property. As a buyer, you cannot ensure that NOC issued buy the builder is the lone NOC and there is no intent of financial fraud.
Enforcement of Agreement
However, a through direct transfer of under construction property. We mutually agreed upon certain terms and conditions which we include in our bi-party to the agreement. Now tomorrow builder may refuse to accept these legal clauses as he is not a party to the agreement. Therefore, sales agreement or assignment deed signed between the seller and the buyer is legally not enforceable. Moreover, all the details like payment status etc in the agreement will be based on sellers declaration. In future builder can always dispute any specific clause in the agreement. In case of landowner’s share, a buyer may land in a bigger trouble as total 5-6 parties are involve depending on the case to case basis.