What is the legal standing of an MOU
13-Dec-2023 (In Documentation Law)
MOU is between developer and property buyer . The MOU is for 5 yrs period with payment in installments to complete the transaction for buying a site. The MOU is on the developer company letter head. Is this legally strong to make him accountable. How about MOU on a stamp paper and getting it registered in a sub registrar office. Your advice pls
Getting MOU registered in the jurisdictional Sub Registrar Office by payment of appropriate Registration Fee and Stamp Duty is the best. As, such, the registration will reflect in Encumbrance Certificate (EC) of the said property thereafter. Reflection of said Transaction with you by the Developer in the EC is an abundant safety to you in case the said developer breaches your terms for future suppressed or behind the back transactions over the said property with other aliens.
MOU on the Company Letter Head is by no means a proper paper for accountability. But however, it satisfies to be a proof and definitely has evidence value for recovery case if any in future. But, still, I would suggest to enter into a Registered Agreement of Sale or MOU on a valid Stamp Paper (Registration will fulfill all such needs by itself).
Few points to take care:
1. Check with the validity of the title deed of the original owner who has entered into such development agreement with the said Developer.
2. Is there consent given by the Owner to the Developer to enter into such MOUs or Agreements of Sale.
3. Whether the contents of the Development Agreement is appropriate to your needs and whether such Development Agreement is suitably registered.
4. Is your desired Site falling to the share of the Developer.
5. If Developer is acting upon a Power of Attorney from the Owner, make sure you read the contents of the said Power of Attorney and its validity.
6. Make sure if such a Transaction is well within RERA regulations, and whether Developer has complied with such norms.
MOU on the Company Letter Head is by no means a proper paper for accountability. But however, it satisfies to be a proof and definitely has evidence value for recovery case if any in future. But, still, I would suggest to enter into a Registered Agreement of Sale or MOU on a valid Stamp Paper (Registration will fulfill all such needs by itself).
Few points to take care:
1. Check with the validity of the title deed of the original owner who has entered into such development agreement with the said Developer.
2. Is there consent given by the Owner to the Developer to enter into such MOUs or Agreements of Sale.
3. Whether the contents of the Development Agreement is appropriate to your needs and whether such Development Agreement is suitably registered.
4. Is your desired Site falling to the share of the Developer.
5. If Developer is acting upon a Power of Attorney from the Owner, make sure you read the contents of the said Power of Attorney and its validity.
6. Make sure if such a Transaction is well within RERA regulations, and whether Developer has complied with such norms.
Hello,
Yes MOU on stamp paper s advisable as you can rely on it. If you want to make the parties accountable then better to get it registered before sub registrar. Stamp duty will be based on the total consideration.
Yes MOU on stamp paper s advisable as you can rely on it. If you want to make the parties accountable then better to get it registered before sub registrar. Stamp duty will be based on the total consideration.
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