Development agreement and sell deed


Dear Experts,

A flat in Pune , on sale , by original owner. Property was developed by a developer through a development agreement with original owner the clause of which state that the developer is entiteled to sell flats after giving ownership flats to original owner.Only those flats can be sold which are not given to owner.The agreement does not mention about an absolute irrevocable power of attorney given to developer

My seller , the original owner ,now does require to have a sale deed ?

Please advice.

Thank you

 
Reply   
 
Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)

Normally in such a situation the developer would have an irrevocable POA in his favour, it is irrevocable because it is agency/power coupled with interest. The Developer has a pre-existing interest under Development Agreement which is sought to be served by giving him the authority to sell. 

Be that as it may, nothing conclusive can be said without examining the agreements in question. 

 
Reply   
 



Thank you very much.

The problem rose because the developer met with an accident.

I understand as you said that full review of document is needed but is a sell deed mandatory for my seller the original owner ? Apartment deed is complete by the owner and developer.

Thanks again for the trouble taken

 
Reply   
 
practising Advocate

What the seller will sell if he himself donot have the title to the property .

 
Reply   
 
Advocate

No, the owner of the land on which the  the building consisting of the said flat was developed by virtue of a Development agreement,  is not to have any sale deed from the Developer for the Owner's ahare of the Developed property. The Owner's share of the Developed property is already mentioned in the Joint Venture/Development Agreement. The Owner can sell the flats which fall in to his ahare. He should enclose the copy of the Development Agreement with the sale deed duly mentioning the clause of his share of the Developed property in the said Sale Deed, while selling the individual flats to his buyers.

 
Reply   
 
Advocate

No, the owner of the land on which the  the building consisting of the said flat was developed by virtue of a Development agreement,  is not to have any sale deed from the Developer for the Owner's ahare of the Developed property. The Owner's share of the Developed property is already mentioned in the Joint Venture/Development Agreement. The Owner can sell the flats which fall in to his ahare. He should enclose the copy of the Development Agreement with the sale deed duly mentioning the clause of his share of the Developed property in the said Sale Deed, while selling the individual flats to his buyers.

 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

  Search Forum








×

Menu

Post a Suggestion for LCI Team
Post a Legal Query
CrPC MASTERCLASS!     |    x