In some cases, the Street Smart seller acts and tells a buyer A to pay a prepayment in a real estate business for his home loan before closing. The probability of fraud is high in this case. The seller will close his house with buyer A`s money. The seller receives original documents from the bank. After that, the seller will sell the property to another party say Buyer B. The same property is now legally sold to Buyer A and Buyer B. The seller receives almost 1.5 to 1.8 times the sale value and the buyer A-Kuufer B will fight together for the property. In other words, the advance in a real estate transaction also depends on the lag between the date of the sale contract and the amount of the sale. Based on my experience, I can say that if the delay exceeds 6 months, the probability of closing the real estate agreement is only 1 in 5.
The seller may resign if he gets a better price or an increase in the price of real estate. The buyer may resign if he thinks he will get a better offer or lower house prices. Under the Indian Registration Act of 1908, any interest transfer agreement must be registered on property worth more than 100 rupees. Therefore, if you purchased a property for sale as part of an agreement without a good state of sale, you will not receive any right or interest in the property that would be transferred under the sale contract. If the seller does not sell or return the property to the buyer, the buyer is entitled to a special benefit in accordance with the provisions of the Specific Relief Act of 1963. A similar right is available to the seller as part of the agreement to require a certain benefit from the buyer. TDS or tax deducted at source is the number 1 on the list, the banks in advance consisting of a real estate deal. If you resort to real estate credit, then bank/real estate credit providers will insist that you deposit the TDS in advance.
The amount is huge for TDS on NRI under section 195. In almost 99% of cases, the bank insists that the buyer pay the TDS advance before paying the end of the bank and provide the payment receipt. It`s pretty ridiculous. The rule is that TDS is only due at the time of payment. How can you force a buyer to deposit TDS in advance? In one case, the enthusiastic buyer bought stamp papers in advance. Unfortunately, the agreement was cancelled because of an error of law in the right of ownership. He lost the money because he could not finish another property in 3 months. In this case, the validity of the stamps was 3 months from the date of purchase.
The above definition shows that a purchase agreement contains a promise to transfer the property in question in the future under certain conditions. This agreement itself therefore does not create any rights or interests on the property for the proposed buyer. The rule of thumb is that as a buyer, you should not pay more than 20% of the value of the real estate to the seller before registering the real estate.