How to Safeguard Interest in Property
Gargi Ranade
(Querist) 15 July 2010
This query is : Resolved
Dear All,
Kindly help me to solve my querry.
Client has finalised deal to purchase a plot in MIDC . However MIDC does not allow to sell barren land without satisfying styipulated requirements regarding construction of buliding occupying at least 10% of area.
As per mutual undersatnding owner has agreed to construct required property in order to get Building Construction Certificate & NOC from MIDC.
Now, owner is asking for Advance costing almost 60% of property amount. He is ready to sign MOU and Power of Attorney in clients favour .However , Ownership will get transfer only after obtaining BCC.
What additional precaution should be taken to safegurad my clients interest as amount involve in the transaction is in some crores.
Kindly throw some light in this regard as it is urgent.
Regards,
Gargi
Guest
(Expert) 15 July 2010
It is suggested to register a 'Sale Agreement'. If it is feasible, obtain 'Bank Guarantee' for the advance amount which will be useful if something goes wrong.
Gargi Ranade
(Querist) 16 July 2010
Dear Sir,
Thanks a lot for your prompt reply.
However, As stated earlier agreement for sale of lans may not be considered as valid, because of MIDC's regulations.
Owner is not eligible to sale land unless he has constructed building on such land.
Similarly in such senario do u beleve that it is possible to create lawfulbank guarantee for advances.
Seeking your valuable advice on the matter.
