4. RESALE OF UNIT
If a seller is willing to sell their unit and potential buyers receive an intimation or notification regarding the availability of the unit directly or through agent.When both parties reach the final stage of the deal, completing the process of offers, counteroffers, and negotiations. Following are the steps to be followed :
1. Confirmation of Title & Possession Ownership,
2. Acquire the related documents to verify,
3. If Loan raised by the Seller on the said Unit,
4. If Purchaser willing to raise loan for purchasing the unit,
5. Documentation Processes steps,
6. All Banks Discretion about documentation.
1. Confirmation of Title & Possession Ownership :
Before proceeding with the purchase, it is crucial to confirm the seller's ownership of the unit and their right to sell it. This involves verifying the title documents, such as the deed, to ensure that the seller has legal ownership of the property. Additionally, it is important to confirm that the seller has possession rights and there are no disputes or liens on the property.
2. Acquire the related documents to verify :
To verify the ownership and other details of the property, the buyer or their advocate may request various documents from the seller, such as :Title deeds and ownership documents,
Encumbrance certificate to check for any outstanding loans or legal claims,
Property tax receipts to ensure that taxes are up to date paid,
Electricity Bill to check owners name,
No Objection Certificate from the housing society or homeowners association, where maintenance charges is concerned.
3. If Loan raised by the Seller on the said Unit :
If the seller has taken a loan on the unit, the buyer should verify the status of the loan. This may involve obtaining a loan statement or a letter from the seller's lender confirming the outstanding loan amount, repayment terms, and any other relevant information.
This helps the buyer understand any financial obligations associated with the property. After finalization of consideration amount in upcoming deed how much amount to be paid directly to the seller’s lenders (Bank or any Financial Institution) loan amount and balance to be paid to the seller.
It is binding on the Seller to intimate their lender Bank or any Financial Institution about the selling of the loan raised unit and also on the request of buyer the Seller has to make available list of Document (LOD) in which all documents list are mention which documents the seller has surrendered to that lender Bank or any Financial Institution.
4. If Purchaser willing to raise loan for purchasing the unit :
If the buyer intends to raise a loan for purchasing the unit, they should approach a bank or financial institution to initiate the loan application process. The lender will assess the buyer's eligibility, conduct a property valuation, and determine the loan amount and terms based on the buyer's financial situation and the property's value.5. Documentation Process Steps :
The documentation process for a property purchase typically involves the following steps which are to be followed but some of the steps are skipped for cot – cutting especially M.O.U. & Public Notice.A. Memorandum of Understanding (M.O.U.) :
It is advisable to jot down a Memorandum of Understanding (MOU) as the first primary document to be executed in a property transaction. The MOU outlines the terms and conditions agreed upon by both the seller and the purchaser. It includes details such as the property description, sale price and payment schedule, timelines for various activities, and any other important terms and conditions. The MOU acts as a safety net for both parties and helps to ensure that the transaction proceeds smoothly. Once the MOU is executed, both parties can proceed with the necessary due diligence and other formalities before executing the final sale deed or title deed document.In that one has to mention:
1.Parties details,
2.Details of property,
3.How the title of the property vest with current Owner,
4.At what consideration amount decided to Purchase or Sell of the Property,
5.Payment Terms and Conditions, Payment Slabs and in what pattern payment to deliver (such as Cash, Cheque, DD, RTGS, Mobile Banking), Bifurcation of Amount between Seller and Lender as well as Self Contribution Amount by the Purchaser.
6.All documentation responsibility on who’s part, Assurance clauses toward each other between the parties are to be noted down.
7.If by any reason breach of contract then what will be its relief.
8. To insert clause of No Objection concern to publish Public Notice of said Property for Title verification and any objection about the Selling of property.
9.Important thing of M.O.U. is that the purchaser gets time to remove the property related all papers; get the Search Repot of the Property from the advocate and most important thing arrangement of Money.
B. Public Notice & NOC :
Public Notice is to inform all concerned parties that the Seller's Name, the owner of Property Address, intends to sell the said property. Any person or entity having any objection or claim with respect to the title, ownership, or any other aspect of the property, is hereby requested to submit their objections, if any, within the specified time frame, e.g., within 7 / 15 / 30 days from the date of this notice.
All objections must be submitted in writing, accompanied by supporting documents or evidence.
Upon receipt of any objections within the specified time frame, the seller will review and address them as per the applicable legal procedures. Failure to raise objections within the given time frame will be considered as a waiver of any claims or objections.
This public notice is intended to ensure transparency and provide an opportunity for interested parties to raise any valid concerns or objections regarding the sale of the property. The seller and their legal representatives will undertake all necessary actions to verify the title and address any legitimate concerns in accordance with the applicable laws and regulations.
C. ATAT – Agreement to Assign and Transer :
This Agreement is executed when both the parties (i.e. Seller & Purchaser) has come to the conclusion about selling / purchasing of unit.
In this Agreement vital part is “consideration” payment, How much Purchaser has self - contributed and how much balance to be paid in how many days he is going to pay and their other negotiated finalized further terms .
In this mostly possession of the unit is not handover to the Purchaser Party unless and until full payment is not received by the Seller Party. After receiving final payment details then the Deed of Assignment (D.O.A.) is executed, after this D.O.A. agreement gets registered and handover to the Banker original copy, the Banker handover the Cheque or account transfer it if that balance amount is raised through loan.
Mostly this A.T.A.T. document is executed due to following reasons -
From Seller Side :
He has already raised a loan from his bank and for authenticity of this selling transaction this document has to be executed in which payment of self-contribution amount with full Stamp Duty & Registration fees has been paid and intimate the bank from whom he has raised the loan.From Purchaser Side :
Mostly Purchaser also raise loan to purchase unit and after doing all procedural part of banking section as well as confirming how much the loan will be provided to Purchaser then the difference remaining amount out of total consideration has to be paid by the Purchaser as a self-contribution and registered the document with payment of full Stamp Duty & Registration and handover this document to the bank from whom he has to raise the loan.
This Agreement is one type of Agreement to Sell, but is said as Agreement to Assign & Transfer, because we assign the rights of unit.
* Note – Some time Purchaser Bank direct the Purchaser to execute the Deed of Assignment directly (after approval of draft from the bank) by skipping this Agreement to Assign and Transfer.
D. DOA – Deed of Assignment :
Deed of Assignment is the Agreement where both the parties (i.e. Seller & Purchaser) have come to the conclusion about selling / purchasing of unit.
In this Agreement total consideration amount is mentioned (full payment by purchaser or Self Contribution and Bank loan amount). From this Document Right, Title, Interest and Ownership directly vest with the Purchaser after getting registered this document. But encumbrance of Bank is still there until the bank loan is not paid.
Possession of units gets immediately after getting full payment to the seller.
This Agreement is one type of Sale Deed, but is said as assignment deed due to we do not sell rights we assign the rights of unit.
E. N.O.C. to Transffer share Certificate :
Generally the No Objection Certificate is provided by the Seller of the Unit to the Society, to transfer the seller name’s Share Certificate in favour of Purchaser’s name and the Seller’s surrender his share certificate to the respective Society including the fees that concern society is charging. These fees are generally negotiated between both the parties; mostly the purchaser of unit pays the charges directly or through the Seller to the society.
F. N.O.C. for TAX Bill Name Change :
A No Objection Certificate (NOC) for a tax name change is an application that acknowledges and confirms that the concerned party i.e. the seller has no objections to the change in the name for taxation purposes. While applying to the respective local tax body’s authority with their appropriate form photocopy has to be provided of Deed of Assignment Document.
G. N.O.C. For Eclectricity Bill Name Change :
Generally the No Objection Certificate is provided by the Seller of the Unit to the Electricity Authority, to transfer the seller name’s Electric Bill in favour of Purchaser’s name. While applying to the respective authority with their appropriate form and attached with Deed of Assignment Document.
H. All Bank's' Discretion about Documentation :
Different banks and financial institutions may have their own specific requirements and procedures for processing loan applications and disbursing funds. The buyer should approach multiple lenders to compare loan offers and understand the specific documentation and eligibility criteria of each institution. It's important to work closely with the chosen bank to complete the required documentation accurately and on time.
Please note that the documentation processes and requirements can vary based on the jurisdiction and specific circumstances of the transaction. It is advisable to consult with legal professionals, real estate agents, and financial advisors to ensure compliance with local laws and regulations throughout the documentation process.
