Q & A

Executing a sale deed





I am planning to buy a flat from a builder in Bangalore. The building is a residential-cum -commercial complex. It has 39 flats out of which 21 are the builder’s share and 18 are land owners' share (3 flats each to 6 owners). The owners and builder have entered into a JDA and a power of attorney is excuted, which are registered documents. These documents clearly state that 52 per cent of the flats are the builder’s share and 48 per cent, the owners share. However the details of flats for the builders and owners are not mentioned. They have made a supplementary agreement on an e-stamp paper giving details of the flats owned by them. If I buy a flat from the builder's share, he says he can execute the sale deed in my name. Is this safe?



Chennai

Normally, once the building plans are approved, the owners and the developer would execute an allocation agreement demarcating their respective entitlements and it is seen that the same has been done in this case. However, in so far as conveyance of undivided share of land, the owners have to be treated as sellers and they can be represented by the developer as their power of attorney. The sale consideration for the undivided share of land can be paid to the developer with the consent of the owners in view of the apartment falling in the share of the developer. The construction agreement for the apartment has to be between the developer and the purchaser. Please ensure the validity of the development agreement and the power of attorney before proceeding further.



FIVE YEAR FOCUS

A weekly round-up of indicative property prices in one area of Chennai that shows how the value of real estate has moved over the last five years.

THIS WEEK: EGMORE

REALTY RATES



Segment (INR per sft)



2015

2010

Luxury apartments

16,500

12,500



Premium apartments

14,000

10,200

Budget apartments

12,500

8,000

Courtesy: Strategic Consulting, JLL












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Printable version | Oct 22, 2021 7:33:48 PM | https://www.thehindu.com/features/homes-and-gardens/q-and-a/executing-a-sale-deed/article7260160.ece

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