Buy a flat from builder

Querist : Anonymous (Querist) 17 January 2012 This query is : Resolved
I intend to buy a Flat (under construction) from a builder. The builder has agreed to some terms and conditions - Quality and specifications of the construction and the total cost. This information is available on their website itself.

Now, they want me to pay about 20% of the total cost as Booking amount to provide me all the documents required for the Bank Loan processing. What should I be getting in writing or do I need to make an agreement before I pay this amount. Once I pay this amount and I get the documents and if Bank or Lawyers find some issues with the property and loan does not get sanctioned what will happen to the amount paid ? Can you please help me on how I can mitigate such risks and how it is done in normal deals.

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Nadeem Qureshi (Expert) 17 January 2012
Dear Querist
if you trust upon builder than you are very simple and common man of India , don't trust any one in money transaction even your wife too. prepared a Builder contract agreement with all the terms and conditions as you think fit in you favour, no need to worry if you want to draft agreemnt so you can call me or write me on my mail.
feel free to call

Advocate. Arunagiri (Expert) 17 January 2012
For giving the copy of the document they will ask for some advance. But,for seeing it they wont ask for any advance. So, you can request any of your nearby lawyers, to give the legal opinion on seeing the document.

It is advisable to take the legal opinion, before parting with sizable advance.

Devajyoti Barman (Expert) 18 January 2012
No builder of repute ask for booking money for giving mere the title deeds of the project.
He must be a man or firm of no scruples.
Do shift to some other builder.

Advocate. Arunagiri (Expert) 18 January 2012
I agree with Mr.Barman.

Many of the builders are one time builder, unorganized, small sized etc. These builders, want to sell the property at the earliest to make money. It may be case their construction is good.

They will try to expedite the selling, that is why they demand advance even for booking.

In some of the case, the builder may demand the cost of the xerox copies.

V R SHROFF (Expert) 18 January 2012
Request builder to issue you a Xerox of Agreement you are likely to enter into.
Get ur income and loan possibility with this xerox from Bank, and confirm, it fulfill your Loan requirements.
Again consult Local Advocate to go through.
Then Deal .