Agreement Holders

[paarun]

Hi All, I am looking out for a plot in Anjanapura. The brokers who I speak to always use a term, it belongs "Agreement Holder". I did not understand what it means and further enquired them. The information I got was not very clear. They say, that the actual allottee gets few lakhs from a person and make a MOU with him. This person (who pays the money) in turn fixes the price for the plot and sells it for higher price and takes the profit.

Also, when I like a plot and would want to negotiate, brokers say that I would be negotiating with Agreement Holder. Is this true? What are the documents I should be collecting from them for taking legal opinion (I will be going for bank loan)? Do anyone of you have any experience dealing with Agreement Holders or Brokers in general? It would be great if people could share their inputs.

[pschidu]

My suggestion is you search till you find a owner-direct-negotiation-type site. I know it is frustrating enough to get a likable site, upon that lot of other variables. Having said that, this is a more impartant point at any site buying venture. You asked for my opinion.

[msn1270]

here agreement holder is nothing but a broker himself or his associate or one more broker whom this broker knows well as a network associate. In few cases there are some financial rich guys, who invests their money for short term gains when their money is idle say for 1 to 6 months in the real estate assets and whenever they are in need of money, they dispose these assets and make gains. In all of these cases, Brokers are involved directly.

In these cases be clear, unless you agree for a specific price with the broker or the so called agreement holder and pay an initial amount(usually varies from Rs.10,000 to few lakhs), you will not get any paper for verification. At no point of time you will be able to see the actual owner till the date & time of registration.

If the paper verification fails to meet your satisfaction based on your lawyer opinion for non-availability of xyz papers or for any specific reason, you have to forget your initially paid amount - No Refund.

[bsvenka]

Dear Sir,

I have waited for an year r so to get the direct allotee and paid Rs.50/sq.ft extra to the broker for not bringing any other person(inspite of no bargain for the price),since the site was as/vaasthu,as Mr.Chidu suggested pl. source out direct allotee and deal with him directly-it is legally safe and secure for your investment.
If your going for bank loan lookout for the bank which can take legal responsibility of the plot.

[jackalbda]

As far as I know, no bank , who provides a loan will take any legal responsibility of the plot. If anything goes wrong with legal matters, there would be * ( star ) condition that only the borrower is responsible for it.

[bsvenka]

Dear Sir,

Check with LICHFL

[Prashanth36]

Generally these kind of deals will happen in BDA allotted layouts. Person "A" is the original site owner who got site allotted from BDA. Person "B" is someone ( most of the cases real estate agents ) who has entered into sale agreement with "A" by giving some amount has advance. In these kind of cases it will be nearly 25% to 30% of the total amount. Agreement period will be for 3months. Generally these agents will search owners who are having urgent need of amount and they will make agreement with them for lesser amount than the market trending value. In this 3 months of time agents will search for new buyer "C" and they will quote high market value.

For example : "A" entered into agreement with "B" for 30*40 site @ rate 2000/sqft and advance amount is 5 Lakhs
"B" will start searching for new buyer and will quote 2300/sqft. At least case he will sell @ 2200/sqft. He will get 2,40,000 profit with investment of 5L within 3 months.

Be careful about these agents. It wont be a problem if u get sale deed from original owner only. Bank will never bother about these things untill that old sale agreement is registered in sub-registrar office. But Bank generally asks for SALE AGREEMENT and that agreement should be within "C" and "A". Hope you got clear picture now.

[pschidu]

Make sure, in any eventuality, of proper documentation, several reviews of documents, and of professjonal opinon. once a deal is struck, do not get swayed. all the besg.

[agopal]

Following was my experience with Agreement Holders when I bought my Anjanapura 9th block site ( in 2005 ):
1. I liked few sites that my broker showed, but he was unable to get hold of the owners/re agents to negotiate.
2. After lots of frustation, my broker finally got me a meeting with an agreement holder. After negotiations
were over and we agreed upon a price, we got copies of documents for verification.
3. At time of agreement, the agreement holder brought along the previous agreement holder, who then brought along the
original site alottee. The original site alottee signed the agreement and previous 2 agreement holders also signed as witness.
4. At time of registration, both agreement holders were present and signed as witnesses to the sale deed.

[paarun]

Thanks all for your input. Things are more clear now. So, when we say the agreement between the allottee and Agreement Holder should be cancelled, does that mean we should have one more agreement which says the agreement is cancelled? Having the agreement holder as a witness is a good idea.

What are the documents to be collected in Anjanapura for legal opinion and loan sake?