Why to hire a property lawyer in India before buying a property? Part 3
After completion of searches, and confirmation of the clear and marketable title of the proposed seller, receipt of statutory due approvals and sanctions, as discussed in details in the earlier parts, the buyers’ lawyer has to proceed further to the next step(s) of the deal, as detailed below:
Dealing with properties that involve “Power of Attorney”
The property in question might have been developed / being developed by real estate developers, under Power of Attorney (POA), on plots of land belonging to different land owners (which is the case in most of the instances at present) OR the property might have been / being sold by the seller in a fiduciary capacity under POA in cases of the auction sale. In all these cases the POA, ownership right of the Principal, the charge documents etc must be carefully perused and ascertained that all the legal requirements in such cases have been duly complied with.
Preparation of the sale agreement
Pending registration of the final sale deed, to allow time for completion of the project (if under construction) or arrangement of funds by the buyer (loan etc) the seller and buyer enter into a “Sale Agreement”.
Sale Agreement: It is a document in writing prepared on Non-judicial stamp paper, containing all the relevant details of the property (proper identification and measurement), the parties (seller / buyer) involved in transaction, terms and conditions such as consideration, schedule of the property along with attached easements and inherent rights to common amenities, completion schedule, quality of construction material, penalty for delay in payment and termination of agreement charges etc.
After execution of the Sale agreement by the parties, it becomes a legal binding for both to perform as per the terms and conditions laid out in the agreement. Violation of the terms and conditions of the Sale agreement amounts to breach of contract and becomes liable to be dealt with under Specific Performance Act.
Sale agreement is the primary legal document, and all the parties involved in the transaction deal with and on the basis of this document only. In case of breach of contract by any party, the aggrieved party proceeds for legal action based on this agreement.
By now the importance of the Sale agreement is amply clear and must be prepared only by competent and expert legal professionals acting on behalf of the buyer. Further course of action to be adopted by such lawyer will be discussed in the next part.
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This article is contributed by -IndianPropertyLawyers, simplifying property
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