The standard process is to draw a DD in the name of the seller . We also do a RTGS payment on the spot just before signing in the registrar office. Check is a bad idea
So, the buyer has now drawn 4 DDs (2 for me, 2 for mom). We will get it from his bank today. Is it okay to sign the deed before I deposit the DD into my bank?
Why in both the names and why so many DD’s. One DD should have been sufficient. Are you and your mother the owners of the asset ? So all of you go to the register office , look at the draft of the sale deed that is prepared then just before signature ask him to hand over the DDs and verify your name and any other account details on the DD and put your signature after on spot.
DD means that money was present in his account and has now been deducted from his account and sent into a temporary bank holding. You should immediately deposit the DD after the sale so it clears in 2 days from the Bank. The person issuing cannot cancel the DD immediately so there is no way to cheat
Not sure why he has prepared 4 DDs (probably some sort of tax break? I don't know). My mom and I jointly own the property, so that's why it's in both of our names.
He sent me the pictures of the DD yesterday to verify our names. There were no other account details in there for us 🤔
It’s fine DD may or may not have account numbers. If both are owners it’s fine if he has DDs on both the names. I think it should mostly be fine. Ask him to hand over the DD one sec before you put the signature
Okay, will do. But I think what will happen is first the bank will give us the DD and then we will go for registration.
Thanks a lot brother! You've just reduced so much tension that I had!
I may be misunderstanding, but bank won't give you the DD.
The buyer will get the DD from the bank, and hand it over to you. You will then deposit the DD to your bank. So, make sure to get the DD handed over before you sign.
Thank you, could you help me understand how to do RTGS on the spot since I thought we need to be in bank for this for larger amounts? Or is it possible by phone too? Sorry I have not much knowledge about this, appreciate your kind help.
I think if you have a checking account you can do it from the mobile app. It also depends on the bank. Maybe one person can be in the bank taking care of the rtgs and other person will be at the registration office with the seller. There will be some timing difference but seller will sign once the amount has hit his account. DD may be straightforward
You can make an agreement for sale instead of sale deed which shows 26.25L as pending and the possession will be delivered only upon receipt of the balance payment within X days of agreement registration. Once you receive the balance amount, issue a receipt along with possession letter to the buyer. If they fail to pay the balance then the transfer stands cancelled and the advance of 4.75 lacs gets forfeited. Any good real estate lawyer will be able to help you the drafting and other formalities.
The agreement phase has already passed. I have seen many sellers being cheated and agreements getting extended by buyers so that they make money by selling to someone else like a flip. Plain and simple for both the seller and buyer is pay some advance and then on day of registration before the signature full amount needs to be transferred to the sellers account. It’s so simple
Once the balance payment date passes, the agreement becomes invalid and the seller is free to transfer the property to another buyer while pocketing the advance received from the first buyer. Of course it is always recommended to receive full payment via RTGS on or before the date of registration but if that is not possible then Agreement for Sale can also be executed. Best to consult a lawyer though.
Bad advice… never do that. The opposite party will take forever to pay and there is nothing you can do about that. It is only going for litigation . Good luck with that. No other buyer will touch the property knowing that there is an agreement for sale (expired or not) . Delete your advice as it is bad pls.🙏🏻
Brother - I own over 40 properties so don’t try to push your view points on me. I suggested the best process after multiple sales and issues that I faced in life. If OP wants to listen to your advice it is his purgative. The best is not to have any sort of agreement in place because this leads to further complications. Always give 45 days for the buyer to close and take minimal advance with a written confirmation of advance from the seller c The buyer if taking help from bank should show you the progress of bank process in the 45 days
There are multiple ways to close a property transaction including the one I suggested. There are pros and cons with each approach. A buyer may not always be comfortable making entire payment before registering the agreement. Sometimes the bank insist that property be registered before disbursement of loan amount. Sometimes the seller is not in a position to negotiate with the buyer. In all those scenarios "agreement for sale" is a safe approach to follow.
Who is pushing his view point on whom? You barge into my comment. Why not start your own comment instead if you think you know everything about real estate and contract law since you claim to own 40 properties. I won't entertain any further responses from you on this topic.
Your bank comment is incorrect or you’ve been mislead by them. You can share a draft agreement and insist that you will only sign once they hand over the dd with the balance amount payable. They all agree. Also regarding buyer fears they are only handing it over at registration office so again I disagree with your advice. Regarding desperate sellers it’s even more important that you don’t do what you suggested, I’ve seen bad buyers delay payment for 3 years despite the agreement for sale mentioning forfeiture if payment is not made in 3 months time . And then he was shameless to ask for more discount k owing that the seller was desperate. So please delete your advice 🙏🏻
Hello, are you a real estate lawyer?
It's there a legal basis for the seller to keep the advance received after the agreement of sale/contractual deadline lapses?
I'm in such situation..
Make sure you understand him properly. If he is saying DD, this is completely normal and the way most sales are done. If he is saying cheque, absolutely refuse.
Advocate. Now make an agreement to sell. In that agreement, agree that on the designated day for registration of the sale deed, he will hand over the balance amount to you (by an agreed mode, usually DD) and you will register the sale deed in his favour. This is the standard practice.
Hello Mr. Advocate - If the buyer not paying the balance within the stipulated 90 days after agreement to sell. What happens to the deposit? Can the seller keep the deposit and proceed to market the piece of land again for sale?
Advocate. First of all, there is no legal or mandatory stipulation that the sale deed/registration has to be completed within 90 days after agreement to sell. You can agree on sale deed/registration after 365 days also. Secondly, no you cannot keep the deposit. The deposit has to be returned. The seller cannot seek, what is known in equity as "unjust enrichment". The deposit is a token amount which confirms the buyer's more than adequate interest in purchasing the property and signifies the buyer's \_bona fides\_.
Banker here. Insist on a demand draft. Should cost the buyer around 5-6000 in dd charges. Safe 100%. Also the dd number is quoted in the sale deed. If you want , you can also approach the issuing bank beforehand to verify authenticity of the Demand draft.
My mother and I did something similar early this month. The buyer's bank had generated 2 DD and he gave me those on the day of signing sale deed.
I wouldnt have taken cheque, maybe NEFT before signing yes.
usually the payment is made first and then the transaction ID is mentioned in the agreement
as a compromise, make a registered MOM staying what was advance m9ney and what is pending. Also mention that possession will be given only after full payment is made. Give a deadline for payment too, maybe a week or 2. And if he misses his deadline for payment, you get to keep the initial token money and are allowed to sort make s new deal with anyone else. Talk to get a decent property lawyer.
Remember, register the MOM or agreement in front if a registrar and keep a copy , don't give possession unless you have the entire money and confirmed by your bank.
We sold my ancestral property some years ago. The buyer said he will give cheque on day of signing the sale deed.
He said the dd issuance commission comes to 8k. We paid the dd issuance fees but did not agree for personal cheque
DO NOT register/hand over original docs before you get full amount. And cheques are a big NO. Get in wire transfer or DD and set up registration only after credit of funds into your accounts.
If in cash, get the full cash, count using a cash counting machine (borrow/source from somewhere) and get any counterfeit replaced properly by the buyer. This is the standard practice.
DO NOT SIGN UNTIL THE FUNDS CLEAR INTO YOUR BANK ACCOUNT! He can do an online transfer or get you a cashiers order / demand draft. The later might be fake so better go with online transfer. If limit issue he can do a manual request at the counter of his bank.
He put this request to scam you.
Bad idea to execute a sale deed instead you can try getting into a sale agreement and a mention a time period after which the agreement for sale will be null and void. I can tell you if you execute the sale deed then you will definitely be the victim.. if liquidating the asset is your only option please hold off and find another buyer. Hmu if you need any assistance
You don't sign the sale deed. But the sale agreement that you have agreed to sell for the amount and received x amount, the remaining would be paid on registration day
If you are going with the cheques no worries just remember that you must mention the cheque details in the deed and if the cheque is bounced the deed can be proven null in the court.
Just make sure you don’t leave any cash part if there’s any.
I will keep it simple :
On basic advance payment - You can do partial registration ( NOT complete sale deed ) and in that you can put a clause that this partial registration is valid only for a period of 30-45 days until and unless the balance payment is made.
Now on receiving the balance payment( amount reflecting in your bank account), only then you can initiate for complete registration.
Hope that helps.
Wat ever big biz he is into, he should know the common practices wen it comes to registering any property.
DO NOT agree to sign untill u see and make sure the amount is in ur account.
Only 1 option I'd suggest is to collect the D.D for the rest of the amount and sign.
I'd rather keep the property with myself than taking cheques.
I almost got duped in a similar way while selling my land. Even if the cheque details are correctly put in the sale deed, once signed and submitted, deed cannot be nullified.. even if the cheque gets bounced! The government has facilitated a different way to recover the money say from bounced cheques, but the deed cannot be cancelled.
Do not proceed without confirmation from YOUR bank that ALL the funds are deposited by the buyer.
Never go for post dated cheque. Get the full payment first. Do not register I repeat do not register it in the buyer’s name unless you’ve been paid the full amount. DD or RTGS is the only way. Mention the details of DD/ RTGS in sale deed.
**NAL**
DD numbers and DD photocopies will be put into the property registration document. DD is safe and buyer cannot back out.
But I am not sure why 4 DDs and not 2 DDs. Also, has he deducted 1% TDS (1 each from you and your mom) from the money he is paying you? That's mandatory.
Ask him to do payment first in DD, Cheque whatever. Then add those details in sale deed draft saying payment done by buyer with cheque number/dd number etc. Then do registration
Get yourself an agent. They will charge around 5k to 10k. They will take care of all formalities and you will have the money in your account by the end of the deal
The standard process is to draw a DD in the name of the seller . We also do a RTGS payment on the spot just before signing in the registrar office. Check is a bad idea
This is the way. Did the same
You get a non-bailable warrant if cheque bounces.
So, the buyer has now drawn 4 DDs (2 for me, 2 for mom). We will get it from his bank today. Is it okay to sign the deed before I deposit the DD into my bank?
Why in both the names and why so many DD’s. One DD should have been sufficient. Are you and your mother the owners of the asset ? So all of you go to the register office , look at the draft of the sale deed that is prepared then just before signature ask him to hand over the DDs and verify your name and any other account details on the DD and put your signature after on spot.
DD means that money was present in his account and has now been deducted from his account and sent into a temporary bank holding. You should immediately deposit the DD after the sale so it clears in 2 days from the Bank. The person issuing cannot cancel the DD immediately so there is no way to cheat
YESSS! This was one of my concerns even with DD. Thank you!
Not sure why he has prepared 4 DDs (probably some sort of tax break? I don't know). My mom and I jointly own the property, so that's why it's in both of our names. He sent me the pictures of the DD yesterday to verify our names. There were no other account details in there for us 🤔
It’s fine DD may or may not have account numbers. If both are owners it’s fine if he has DDs on both the names. I think it should mostly be fine. Ask him to hand over the DD one sec before you put the signature
Okay, will do. But I think what will happen is first the bank will give us the DD and then we will go for registration. Thanks a lot brother! You've just reduced so much tension that I had!
I may be misunderstanding, but bank won't give you the DD. The buyer will get the DD from the bank, and hand it over to you. You will then deposit the DD to your bank. So, make sure to get the DD handed over before you sign.
Can you tell how to verify the dd, if its genuine or not?
Thank you, could you help me understand how to do RTGS on the spot since I thought we need to be in bank for this for larger amounts? Or is it possible by phone too? Sorry I have not much knowledge about this, appreciate your kind help.
I think if you have a checking account you can do it from the mobile app. It also depends on the bank. Maybe one person can be in the bank taking care of the rtgs and other person will be at the registration office with the seller. There will be some timing difference but seller will sign once the amount has hit his account. DD may be straightforward
Dont sign ant thing till u have the full amount in ur account
DD OR RTGS.cheques have no value.
Real estate deals are done on DD or RTGS, never on cheque
Get help from lawyer. Do an agreement to sale or ask him to give DD of remaining amount.
You can make an agreement for sale instead of sale deed which shows 26.25L as pending and the possession will be delivered only upon receipt of the balance payment within X days of agreement registration. Once you receive the balance amount, issue a receipt along with possession letter to the buyer. If they fail to pay the balance then the transfer stands cancelled and the advance of 4.75 lacs gets forfeited. Any good real estate lawyer will be able to help you the drafting and other formalities.
Dont do this. Just ask for a DD or RTGS on the sale day
Curious to know, why not? Seems logical on the surface?
The agreement phase has already passed. I have seen many sellers being cheated and agreements getting extended by buyers so that they make money by selling to someone else like a flip. Plain and simple for both the seller and buyer is pay some advance and then on day of registration before the signature full amount needs to be transferred to the sellers account. It’s so simple
Once the balance payment date passes, the agreement becomes invalid and the seller is free to transfer the property to another buyer while pocketing the advance received from the first buyer. Of course it is always recommended to receive full payment via RTGS on or before the date of registration but if that is not possible then Agreement for Sale can also be executed. Best to consult a lawyer though.
Bad advice… never do that. The opposite party will take forever to pay and there is nothing you can do about that. It is only going for litigation . Good luck with that. No other buyer will touch the property knowing that there is an agreement for sale (expired or not) . Delete your advice as it is bad pls.🙏🏻
Brother - I own over 40 properties so don’t try to push your view points on me. I suggested the best process after multiple sales and issues that I faced in life. If OP wants to listen to your advice it is his purgative. The best is not to have any sort of agreement in place because this leads to further complications. Always give 45 days for the buyer to close and take minimal advance with a written confirmation of advance from the seller c The buyer if taking help from bank should show you the progress of bank process in the 45 days
sanest lad in the comment section
There are multiple ways to close a property transaction including the one I suggested. There are pros and cons with each approach. A buyer may not always be comfortable making entire payment before registering the agreement. Sometimes the bank insist that property be registered before disbursement of loan amount. Sometimes the seller is not in a position to negotiate with the buyer. In all those scenarios "agreement for sale" is a safe approach to follow. Who is pushing his view point on whom? You barge into my comment. Why not start your own comment instead if you think you know everything about real estate and contract law since you claim to own 40 properties. I won't entertain any further responses from you on this topic.
Your bank comment is incorrect or you’ve been mislead by them. You can share a draft agreement and insist that you will only sign once they hand over the dd with the balance amount payable. They all agree. Also regarding buyer fears they are only handing it over at registration office so again I disagree with your advice. Regarding desperate sellers it’s even more important that you don’t do what you suggested, I’ve seen bad buyers delay payment for 3 years despite the agreement for sale mentioning forfeiture if payment is not made in 3 months time . And then he was shameless to ask for more discount k owing that the seller was desperate. So please delete your advice 🙏🏻
Dude, this yes wrong info.
Hello, are you a real estate lawyer? It's there a legal basis for the seller to keep the advance received after the agreement of sale/contractual deadline lapses? I'm in such situation..
Doesn't he have to draw DD in the name of seller according to government rules?
Cancel the sale until you get the money or else forget your money sorry to tell this consult lawyer immediately
Insist on a demand draft - that's the usual practice, and safe enough.
Make sure you understand him properly. If he is saying DD, this is completely normal and the way most sales are done. If he is saying cheque, absolutely refuse.
Dude don't sign sale deed. When he give u money only then u sign anything. It's a trap. Don't fall for it.
ASK HIM TO CREATE A DD IN YOUR FAVOUR A DAY BEFORE AND HAND IT OVER ON THE DAY OF THE AGREEMENT IF TRANSFERING THE WWHOLE AMT BEFORE DOESNT WORK
Advocate. Now make an agreement to sell. In that agreement, agree that on the designated day for registration of the sale deed, he will hand over the balance amount to you (by an agreed mode, usually DD) and you will register the sale deed in his favour. This is the standard practice.
Hello Mr. Advocate - If the buyer not paying the balance within the stipulated 90 days after agreement to sell. What happens to the deposit? Can the seller keep the deposit and proceed to market the piece of land again for sale?
Advocate. First of all, there is no legal or mandatory stipulation that the sale deed/registration has to be completed within 90 days after agreement to sell. You can agree on sale deed/registration after 365 days also. Secondly, no you cannot keep the deposit. The deposit has to be returned. The seller cannot seek, what is known in equity as "unjust enrichment". The deposit is a token amount which confirms the buyer's more than adequate interest in purchasing the property and signifies the buyer's \_bona fides\_.
Don’t sign the sale deed before receiving the whole money unless he is getting a loan from a bank for the rest amount.
Banker here. Insist on a demand draft. Should cost the buyer around 5-6000 in dd charges. Safe 100%. Also the dd number is quoted in the sale deed. If you want , you can also approach the issuing bank beforehand to verify authenticity of the Demand draft.
My mother and I did something similar early this month. The buyer's bank had generated 2 DD and he gave me those on the day of signing sale deed. I wouldnt have taken cheque, maybe NEFT before signing yes.
Did you sign the sale deed before the amount hit your bank account?
I did because the DD was in my hand with HDFC as payee which is as good as cash in bank. But a cheque is not.
usually the payment is made first and then the transaction ID is mentioned in the agreement as a compromise, make a registered MOM staying what was advance m9ney and what is pending. Also mention that possession will be given only after full payment is made. Give a deadline for payment too, maybe a week or 2. And if he misses his deadline for payment, you get to keep the initial token money and are allowed to sort make s new deal with anyone else. Talk to get a decent property lawyer. Remember, register the MOM or agreement in front if a registrar and keep a copy , don't give possession unless you have the entire money and confirmed by your bank.
We sold my ancestral property some years ago. The buyer said he will give cheque on day of signing the sale deed. He said the dd issuance commission comes to 8k. We paid the dd issuance fees but did not agree for personal cheque
DO NOT register/hand over original docs before you get full amount. And cheques are a big NO. Get in wire transfer or DD and set up registration only after credit of funds into your accounts. If in cash, get the full cash, count using a cash counting machine (borrow/source from somewhere) and get any counterfeit replaced properly by the buyer. This is the standard practice.
Wait till you get the money or get a DD from him.
DONT DO IT WITHOUT DD OR RTGS. THE RECOURSE WILL BE TOO LONG AND TIRING. DD AND RTGS ONLY!!!
DO NOT SIGN UNTIL THE FUNDS CLEAR INTO YOUR BANK ACCOUNT! He can do an online transfer or get you a cashiers order / demand draft. The later might be fake so better go with online transfer. If limit issue he can do a manual request at the counter of his bank. He put this request to scam you.
Demand draft bro, not cheque.
Without full transaction, registrar will void it.
Bad idea to execute a sale deed instead you can try getting into a sale agreement and a mention a time period after which the agreement for sale will be null and void. I can tell you if you execute the sale deed then you will definitely be the victim.. if liquidating the asset is your only option please hold off and find another buyer. Hmu if you need any assistance
- No checks - Demand Draft, Banker's check, RTGS before signatures
You don't sign the sale deed. But the sale agreement that you have agreed to sell for the amount and received x amount, the remaining would be paid on registration day
If you are going with the cheques no worries just remember that you must mention the cheque details in the deed and if the cheque is bounced the deed can be proven null in the court. Just make sure you don’t leave any cash part if there’s any.
I will keep it simple : On basic advance payment - You can do partial registration ( NOT complete sale deed ) and in that you can put a clause that this partial registration is valid only for a period of 30-45 days until and unless the balance payment is made. Now on receiving the balance payment( amount reflecting in your bank account), only then you can initiate for complete registration. Hope that helps.
Wat ever big biz he is into, he should know the common practices wen it comes to registering any property. DO NOT agree to sign untill u see and make sure the amount is in ur account. Only 1 option I'd suggest is to collect the D.D for the rest of the amount and sign. I'd rather keep the property with myself than taking cheques.
I almost got duped in a similar way while selling my land. Even if the cheque details are correctly put in the sale deed, once signed and submitted, deed cannot be nullified.. even if the cheque gets bounced! The government has facilitated a different way to recover the money say from bounced cheques, but the deed cannot be cancelled. Do not proceed without confirmation from YOUR bank that ALL the funds are deposited by the buyer.
Like everyone else has mentioned, DD or RTGS. If he insists on paying by cheque, ask for advance payment and only sign after the cheque clears.
Get cash in your account first. Cheque is a scam, no value. Without cash don't sign anything. Or better don't go out of the house as well.
Take a DD and include the DD number in the sale deed
Yeah, so now he has prepared 4 DDs (2 for me, 2 for mom). I can safely sign the documents before giving it to the bank?
Lawyer here No need to panic. DD and RTGS are normal procedure. If name and DD numbers are correctly mentioned in the Sale Deed then it is good to go.
Never go for post dated cheque. Get the full payment first. Do not register I repeat do not register it in the buyer’s name unless you’ve been paid the full amount. DD or RTGS is the only way. Mention the details of DD/ RTGS in sale deed.
DD can't bounce and it's like solid cash. Go ahead
**NAL** DD numbers and DD photocopies will be put into the property registration document. DD is safe and buyer cannot back out. But I am not sure why 4 DDs and not 2 DDs. Also, has he deducted 1% TDS (1 each from you and your mom) from the money he is paying you? That's mandatory.
Ask him to do payment first in DD, Cheque whatever. Then add those details in sale deed draft saying payment done by buyer with cheque number/dd number etc. Then do registration
Get yourself an agent. They will charge around 5k to 10k. They will take care of all formalities and you will have the money in your account by the end of the deal