Buying property

Dipak N. Bhatt (Querist) 09 June 2014 This query is : Resolved
Dear Sir,

My friend want to buy a old flat. He is ready to pay full amount of consideration in next four months. But seller (flat owner) of the flat working in Dubai and unable to reach India for all the time for receiving amount. For that he suggested me to appoint his wife (she is staying in India) for receiving the same amount time to time. He will available only for registration when fix in future.

My question is that which procedure to be follow to complete this kind of transaction.

Thanks & Regards

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Devajyoti Barman (Expert) 09 June 2014
1. It should not be done unless he executed a registered POA in the name of wife. The same can be done in Dubai and authenticated in India.

2. If he refuses to do this then you should wait till he reached India.

Laxmi Kant Joshi (Expert) 09 June 2014
Agree with Mr. Barman.

Guest (Expert) 09 June 2014
Well advised.

Sankaranarayanan (Expert) 10 June 2014
No more advise to be needed. I do agree with Barman ji

Rajendra K Goyal (Expert) 10 June 2014
Either pay full amount at the time of registration or ask seller to execute POA in favor of his wife, who in turn would issue receipt of money received.

If he is maintaining account in India, money may be credited in his account and obtain receipt of money paid from the seller.

vinay kumar (Expert) 10 June 2014
Agree with Mr. Barman

Dipak N. Bhatt (Querist) 10 June 2014
Dear Sir(s),

Thanks a lot for your valuable suggestion.
But sir If POA will not possible from his side then can I ask him to give email confirmation for appointing his wife to collect amount on behalf of him. And at end he will be here for final consideration and registration of the same.

Thanks again for spending your valuable time for me.

malipeddi jaggarao (Expert) 10 June 2014
Mr.Dipak - you can do anything on good faith. But legally, if you want to be protected, paying to anybody even to the seller without sale agreement will land you in problem.

There should be a proper sale agreement mentioning the sale consideration, details of the property to be sold and the period for sale registration. In that sale agreement he can nominate his wife to receive the interim payment on his behalf. He must be having some NRO account in India. If this clause is included in the sale agreement, the money can be deposted in that account.

Ask the seller to come down to India once, execute the sale agreement including the clause for payment of interim amounts. He can finally come and register the property.

Sankaranarayanan (Expert) 10 June 2014
Well advised by Sri Malipeddi Jaggarao , If they not follow POA then only the way you have to deposit the amount in the NRI appropriate account and keep the Paying slip as record. while make the agreement , you have to mention the payment schedule and bank details and date of deposit.

Dipak N. Bhatt (Querist) 10 June 2014
Dear Sir(s),

Thanks all of you for valuable suggestions.

T. Kalaiselvan, Advocate (Expert) 13 June 2014
I agree with the views and suggestions made by expert Mr. Malipeddi Jagga Rao, which is perfect and sufficient.