Dear Friends,
I'm selling my residential apartment in Mumbai and was wondering if there are any legal considerations that are to borne in mind from the stage of accepting token money to full/ final settlement and registration of property on buyer's name. I have a loan on this property and was thinking on the following lines:
1. Accept the token money from the buyer and execute a memorandum (on plain paper) stating clearly the payment schedule and clauses for cancellation of sale from buyer's side (resulting in forfeiting of the token amount) and seller's side (resulting in pay the sum equal to the token money paid by the buyer)
2. Accept the second installment equal to the outsstanding loan amount. Issue a receipt note (or acknowledgement) to the buyer carring details of the payment made.
3. Obtain the original documents from bank
4. Obtain certificate stating no dues from society
5. Accept the third and final installment from the buyer. Issue a receipt note (or acknowledgement) to the buyer carring details of the payment made.
6. Upon realization of all the financial transactions, get the property registered on buyer's name and hand over the keys.
Looking at the cases of frauds, I want to be extra cautious and would like to know if there's any possibility of buyer cheating the seller, in any manner or at any stage, while executing the transactions. The buyer is not taking loan but al the transations are transparent and clean (through bank accounts).
Thanks,
Rishi
