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Hi,

My friend is buying a 30X50 plot from Max Worth near Dodaballapur main road, He is buying the plot at Rs. 1200 SFT. He paid the advance got the agreement and applied for loan from LIC (Composite Loan). As part of the documents to be submitted he applied for the latest EC and got it, the problem now is that the EC shows that the plot has been sold to one more party for 22 Lakhs, when enquired with the seller he tells that for the purpose of getting immediate cash he had a agreement with the third party for 22 lakhs and still the property is in his name.

I could see on the EC that it is mentioned as Stirasti Karidi Karaaru.

Can any one confirm whatever the seller is telling is correct and it is legally safe to go ahead with the purchase.

Thanks,

Ravi Kumar. B

Hi,
Immovable Property Sale Agreement
It means that the seller has already entered into an agreement of sale for the schedule property.
Raj

Hi,

Please get legal opinion regarding this with your lawyer. Also ask seller to give that old agreement copy. Try to contact that person who has entered into agreement with seller. And also ask seller to do an agreement which states that old agreement has been cancelled and get sign from both seller and old buyer.

Ask the seller to get the agreement with the previous agreement holder cancelled and get the cancellation registered and get a new EC. The EC would be clear. Get copies of the cancellation of the agreement and only then you can proceed.

If I were you, I would not be going ahead with the purchase as the seller does not seem trustworthy if he has not disclosed the earlier agreement prior to taking advance. Your friend is lucky since the agreement to sell was registered it is reflected in the EC. Else your friend would not know of the agreement.

If the agreement is not cancelled, if the price of the plot increases, then the prior agreement holder can file a case and cause your friend unnecessary trouble.

Dear Gowda,
Since the site is encumbered by entering into agreement of sale, Now owner has no absolute right to sell it, unless the said agreement is duly cancelled with registered document ( As the same is registered one).

Unless it is cancelled,it is not advisable to purchase, much-less Bank will not extend any loan.

murali
advocate

I think Ravi is lucky that inspite of obvious attempt of the seller not to disclose the real position, the EC showed that there indeed was an agreement registered before. What would be the legal view if the owner had made an agreement to sell earlier and NOT registered it - in this case the EC would have been clear. Would the sale agreement with he previous buyer still be a problem, though not registered?

it is risky to buy.