I am considering a property purchase which was found through one of my friend. The owner of the property stays in US and he has bought this flat 2 years back as an investment. The builder and the property owner says that this property is still not registered on the original owner's name and only a sale agreement is made. The builder says if I do the down payment for 20% of the value he will cancel the earlier agreement and make a fresh agreement in my name and also make a sale deed which will be registered in my name.
I am little hesitant if this process is right. What does cancelling of agreement mean? Can the builder cancel agreement just by an email communication from the current owner, who is in US or should he sign some documents? Should the builder mention in my sale deed/agreement that this property was initially sold to someone and now he has cancelled it and selling to me?
I just wanted to know what are the steps I need to follow to make sure I dont get into any trouble. Any advice would be really helpful and highly appreciated.