Land Advance Payment Agreement Format
Normally, the real estate agreement is concluded within 45 to 60 days. In very few cases, buyers and sellers agree to conclude the agreement in 6/12/18 months. In some cases, the date of registration was 2 or 3 years from the date of the sales contract. Believe me, a buyer`s risk increases if the agreed listing date is 12 months. There can be several reasons for delaying the registration of real property. The buyer needs time to arrange funds, the property is on an irrevocable lease, the seller needs a longer period of time to take a stay regime, etc. In such scenarios, a very minimal amount would have to be paid for the advance in a real estate transaction. Some of the buyers counter-attack me: „What`s wrong with a real estate transaction in advance? In any case, as a buyer, I have to pay this amount to the seller at a later date. I agree that at the end of the day you will have to pay the equivalent of 100%, but timing is just as important. Preloading the payment represents an increased risk for a buyer. Therefore, it is important to clarify the details of the advance in a real estate transaction with the seller and the mortgage provider before signing on the polka dot line. 1. If the party in question refused to buy the land, you should have terminated the contract in writing by correctly returning the advance they deducted. Last but not least, a buyer should include relevant and enforceable clauses in the sales contract in order to protect the financial interest in the event of an unfortunate event or the agreement is cancelled due to unforeseen circumstances.
In some cases, the seller acts in the event of a street hit and tells buyer A to pay a deposit in a real estate transaction for their home loan before closing. The probability of fraud is high in this case. The seller will close his house from the means of buyer A. The seller receives original documents from the bank. Subsequently, the seller will sell the property to another party, for example.B. Buyer B. Now the same property is legally sold to buyer A and buyer B. The seller receives nearly 1.5 to 1.8 times the sale value and buyer A & buyer B fight for the property.
4. Repay the advance you collected to the first proposed buyer. The quantum of the advance in a real estate transaction determines the risk for a buyer. Cash payment in real estate is BIG NO. If you pay in cash, you risk all your money. In addition, a cash transaction of more than 20,000 rupees in a real estate transaction is illegal. Always remember that title to the property will only be transferred at the time of registration. In fact, I have belatedly received some requests from buyers who want to make a 100% payment on the day of check-in. The reason for this is that some of their friends, family members, etc. have had a bad experience due to a higher down payment in a real estate business.
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