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Is Indemnity Bond required from the Seller?


05-Oct-2023 (In Property Law)
Hi, I recently got a Housing loan from a bank based on the documents submitted to them. The seller and I completed the Agreement of Sale registration process with the registrar. However, I am bit unsatisfied with the documents provided to me by the seller. The property was built in 1982 and has a pre-sale document from the first builder with 5 rupees stamp (this however does not have any date on it, although the signed date is there). The property was not registered and no stamp duty was paid at that time. The building also has an OC and the flat share certificate is also given by the society with 5 shares of 50 rupees each. Based on these the bank has thankfully given me the loan after having rejected from an major Public sector bank. The society has not done Conveyance ever. For the future, should I get an Indemnity bond from the seller that explains the chain of ownership as well as to mention that any stamp duty that will be required to pay in future will be beared by him? If y
Answers (1)

Answer #1
832 votes
This is my response to you: 1. Firstly you need to address the main issues here that the date should have been written on the stamp duty paid also, the property must have been registered; 2. If you did register now, then it seems that you may have paid penalty for the same; 3. The society must do the conveyance or atleast inquire about deemed conveyance; 4. You must obtain a Indemnity Bond and notarize them; 5. Make sure that, clauses are added which shifts the liability on the seller; 6. Also, notarize this bond; 7. Complete all the formalities with the society etc.; 8. Consult a local lawyer if you need him/her to verify your documents of transfer.

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