Buying a landlord share flat

[manja]

Hello,
I have been in this forum for its earlier avatar, but always been a reader. I must admit I have gained lot of insight from various posts here.
Coming to my current situation, I have selected a flat and paid the booking amount as of now. Project is Pariwar Presidency and its a landlord share flat. All my negotiations were with the builder, the landlord was never in the picture.

The builder holds the GPA from landlord for marketing and selling his share of flats. I have the copy of this GPA. For executing the Sale agreement, the builder says I need to pay the 20% of the cost of the flat to the builder but the agreement will be between me and the landlord and it will be written in the agreement that the landlord received this money whereas I will actually pay the money to the builder.
Next I need to go for a bank loan. But the Bank will release the remaining 80% to the landlord, because for all purposes he is the owner of the flat. This the builder says ok.

This means I am paying 20% to the builder and 80% to the landlord, though in the paper it will be noted that I paid 100% to the landlord.

Is this a deep mess I am getting in or guys here have some similar experiences, please share.

[bangalorebalaji]

If the builder is OK for receiving 80% of the money directly from Bank to the landlord, then he should be accpeting the remaing 20% to pay directly to the landlord and keep only one party in the transaction. I have another question, As per Bank they will be paying to landlord and builder is OK for that that mean does the existing GPA will be cancelled by the landlord just to make sure the builder is not going to sell the property to other party with GPA in hand. I would recommend you to take legal opinion to handle the current situation.

[arigilamurali]

Dear Manja,

Unless land lord rises any objection for making payment to builder and by way of registered sale deed if he accepts receipt of entire sale consideration amount, then absolutely there will be no problem at all. Any how before finalizing please contact owner about authorization given to builder.

murali advocate

[manja]

Thank you Balaji and Muraliji. The situation is like this - I will pay the 20% amount to the builder, but in the agreement it will be written that I have paid this money to the landlord and he will also sign it as if he has received the money. This mean I am knowingly putting wrong information in the agreement. Is this legal?

[arigilamurali]

Dear Manja,

As made it clear,when landlord itself is signing the documents acknowledging the receipt of 20% amount, how can you term it as illegal.
murali
advocate