We intend to buy a flat each in two apartment blocks located side by side, and promoted by the same person. The guideline value (GV) quoted by him in one flat is 15% higher than the other. This will automatically increase registration charges, stamp duty, and other mandatory payments. The promoter says the increase in GV in one of the flats is because the entire property was being bought by cash. He also expects us to pay at least 50% in cash going forward. Is this permissible by law? The promoter is a reputed builder with about 100 projects. Enquiry reveals that this is common practise in real estate business. It is also reliably learnt that the promoter is selling this apartment (with higher GV) by way of power of attorney (PoA) and not as a direct seller. (The current owner is an NRI). It is not clear whether the promoter can act in a dual role, one as defacto owner (having bought the old property by way of unregistered agreement i.e not official) and also as a power holder (adjudicated). Kindly tell us what to do as the flats are good and the promoter’s reputation is also good. The higher GV and status of promoter’s request for cash and his role in this are of much concern to us.
Names withheld on request
All payments made to the landowner or the promoter should be by way of bank transactions i.e., cheque/ demand draft or online transfer. The owner may be represented by his/ her duly appointed power of attorney agent (which may be the builder), provided the terms between them are recorded in a separate agreement or Memorandum of Understanding. The agent can act within the scope of powers granted under the PoA.
