Civil Procedure Code (CPC)

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Nayan   22 August 2016

Question about amalgamation

Dear All,

Lets say,
A(First Party) and B(Second Party) , they both had amalgamated the property and give it to C (Developer/Promoter) for constructing multi stored G+3 Building. Where development agrement and POA done subsequently. Developer get 50% and owner get A(25%)+B(25%) = Total %50 as an owner allocation.Developer also gave owner allotment letter to both A&B

Now i'm purchasing the flat from B(Second Party) as part of owner allocation through bank home loan.

Can you please suggest do i need to add A(First Party) as a vendor in sale agreement ? if yes then when bank will disburse the loan amount will both Party A & B name mention on bank cheque? Or Only B since i'm purchasing from B

Thank You.

 7 Replies

adv.bharat @ PUNE (Lawyer)     22 August 2016

Bank will disburse the loan to developer as per record.


Which name is incorporated in sale deed its up to u and bank.



If u like my solution then give THANK on my profile.

1 Like

Agastya   23 August 2016

A is not vendor. He is part land owner. His name must be on agreement compulsory as the agreeing party. Not as vendor. You must get GPA (if not in same city) and NOC saying no dues on your flat from both A and C. Get no dues on that flat letter from B also. Both A and C must give separate consent letters that B can sell to you. Any letter from builder must be from its owner or managing partner with seal. Receptionist letter is no use. If A and B have adult children all names must be on agreement. They must all come and sign at registrar. If minor kids then in the GPA mention that parents are signing in their behalf. The word agreeing party is incorrect. I'm not able to recall the legal word. It's basically someone who is a stake holder. Yes, A and C are stake holders in B's property notwithstanding any JDA or sharing agreement. They are both consenting to B selling his share (B share) to you. Bank will give DD only to B. Quickly change power meter, water meter (if applicable) and khatha to your name soon after registering in your name. If value below 50 lakhs no TDS and service tax. VAT is only if > 12 flats in building and if you are buying before handover. Make sure you get completion letter from builder. Try for occupancy certificate. This last one (OC) you will 99.99% NOT get. That's how it is all India.
1 Like

Nayan   24 August 2016

Dear Mr. Bharat & Mr. Agastya,

Thank for your kind help.

Mr.Agastya exactly you say.

Both the land owners (A&B) clubbed their property into single unit through amalgamation and gave it to the developer (C) to construct flats (G+3) and each floor get 2 flats (One 3 BHK is on front side & another is 2 BHK back side) where grould floor is used for commercial shop purpose.

As per the development agreeement - Developer get complete 1st & 3rd floor, where land owner get Ground floor and 2nd floor ((A) get back side and (B) get front side). Developer gave allotment or procession letter to both land owners (A&B) with developer company stamp & letterhead.

Now i am purshacing from Land Owner (B) front side as 3 BHK and made Agreement for Sale




Submit the agreement to the bank for home loan.

Now Bank Lawyer read all the necessary documents and tell that "You have to include Land Owner A as Vendor in sale agreement" since both of them are land owner. she is rigid to her expression.

I said i can't since i am not purchasing from (Land Owner A). if i include Owner (Land Owner A) then bank probably disburse the amount half half to both (A&B).

My (Land Owner B) suggest bank lawyer lady that He wil change the Sale Agreement and  include Land Owner A as CONFIRMING Party and (Land Owner A) ready to give all the required documents like NOC , NO dues etc. New Sale Agreement will look like.





Even that bank Lawey is rigid to her position yet. During with her last discussion i realize that she is probably desiring for some money.

Now, please suggest is latest sale agreeement where Land Owner A include as CONFIRMING Party is correct ? and what to do next ?

Thank for all of your time.



Agastya   28 August 2016

Ah yes. Confirming party is the word I was looking for. This new agreement with word confirming party or sometimes consenting is the correct expression. If bank lawyer is asking for A to be as co-vendor then maybe the joint Dev. Agreement or sharing agreement between A,B and C is not clear enough. Meaning whatever they agreed upon before you came to picture is not clear cut separation. So I am getting little suspicion. Firstly don't depend on bank lawyer for your property papers and its land authentication. You must get it done by an independent person. Why - in the loan agreement bank will add a clause that even if that property has some ownership fault discovered later or it gets acquired for road widening or any illegal construction then you still have to pay back loan. Don't depend on bank for your property background check. Better clarify with bank that they will pay money only to B even if A is included and named as vendor, instead of the standard confirming party term. If they answer that they will pay only to B then it's half job done. Then check if B and A are okay with this. Then go ahead. Now it becomes mandatory to get a GPA from A to B permitting him (B) to sell B's share to you. And NOC also. 2 documents total. Both must mention your flat number and your name. Add parking and common area details. Be sure to include all adult children and minor kids as either confirming party or in the GPA. Nobody wants anyone to come after 10 years and start demanding money from you. Last choice, if bank is not agreeing to give payment only to B OR if the final wording is not to your liking then just walk away. Take your advance amount back diplomatically and buy some other property. No property is worth living with tension for next 40 years.

Agastya   28 August 2016

Oh wait. I just read once more. A and B clubbed their separate adjoining properties. Then I made a slight mistake. A is definitely a co-seller or co-vendor. My assumption was A and B were joint owners of a single property. In this situation, B is not your proposed property single owner. Bank had all rights to give 50% payment to each A and B. Later they can settle accounts amongst themselves. Not your headache. Even if your property is upon B's original portion of now amalgamated property, it is a 100% combined share. So both are co-vendors. No question of confirming party. All other things I mentioned are same. One more thing. This may have been an agricultural land at some point. When it came under city limits it may have got a new property ID. So you need a municipality paper having both old and new (allocated by municipality) ID on same property. Now the property khatha is more important. There should be a joint khatha after amalgamation. This has to get sub divided into number of flats. Example (A's-khatha + B's-khatha)/your flat number.

Agastya   28 August 2016

Khatha is my local area term. It may have some other word where you live. It is basically like a property title saying survey number so and so with flat so and so is in your name. There will be 2 khatha. One for land and one for flat. Land khatha then gets modified into individual apartments as described in previous comment. You must also study their amalgamation document. Is it equal share or any different % for each.

Agastya   28 August 2016

Okay last comment. Amalgamation document and JDA and sharing documents must have been registered by them with registrar. It's a negligible fee. But makes each more legal.

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