Hi,
I was trying to buy a site in JP Nagar 8th Phase, 2nd Block as shown by a RE person, I collected documents and legal verification is cleared, and today I learnt that there is an agreement holder in between! I knew before that owner is in USA and a lawyer holds a GPA, and above all a another RE person has an agreement, I am not sure if to go ahead or just stop, because agreement holder will defiantly increase the price at-least by 200/sqft.
Would directly contacting owner would help? I have his contact details, or what is the general guideline while dealing with agreement holders?
Please advise,
Thank you
SUN
Agreement Holders
Agreement Holders
Last edited by sun on October 5th, 2012, 2:37 pm, edited 2 times in total.
Re: Agreement Holders
By giving the GPA / agreement, owner would have already collected down payment from the lawyer/agent. check for the validity of that agreement. Only after the expiry of the agreement period, if the plot remains unsold, owner can either renew it again or he can terminate the expired GPA/agreement and then you can directly deal with the owner. Within the validity period, you can't create any conflicts.
Regarding bargains with the agreement holder is not easy. Since they would have already paid few lakhs of rupees to the owner, they calculate their returns along with monthly interest rate of 3-5% for their initial investment + commission he need to share with his network associates who gets prospective buyer for him. Hence they don't come down easily, Unless he is very desperate to get back his money at the end of agreement period. If he is capable to sustain his investment, he will again give one more installment to the owner and extend his agreement and increase the selling price again.
Regarding bargains with the agreement holder is not easy. Since they would have already paid few lakhs of rupees to the owner, they calculate their returns along with monthly interest rate of 3-5% for their initial investment + commission he need to share with his network associates who gets prospective buyer for him. Hence they don't come down easily, Unless he is very desperate to get back his money at the end of agreement period. If he is capable to sustain his investment, he will again give one more installment to the owner and extend his agreement and increase the selling price again.
Last edited by msn1270 on October 3rd, 2012, 10:05 am, edited 2 times in total.
Re: Agreement Holders
you are right msn1270..I am thinking I will give a buzz to owner to check with him..thank you for sharing thoughts.
Re: Agreement Holders
Ensure the agreement holder is actually an agreement holder, by asking for a copy of the agreement (with the numbers blanked, if needed). Delay the negotiation and negotiate only towards the end of the term of the agreement, the agreement holder will be nervous and will yield and give you a good deal.