There is a 10 marla old house and the owner made a deal with a party to sell 10 marla house to them.
That party paid them a biyana and afterwards could not pay the full amount with in that time period. They could only pay half of the price. Now the owner has offered me to buy 5 marla out of it and the rest of the 5 marla will be given to that party.
My question is that should i ask the owner to first legally cancel the biyana deed?
What is the legal procedure to buy this property?
Dr. Mehmood,
As a rule of thumb, you should not enter into a deal which has already gone bad with another party, until that first deal is officially closed. Lucky, that you already know about failed biayana story, otherwise you would have entered into this deal without knowing about the dispute. There is a possibility of the biayana dispute getting into full blown litigation if both parties do not settle it amicably.
Secondly, I am not sure how the owner can legally split a 10 marla built up property into 2 and then transfer each separately. Perhaps there are some bylaws that I am not aware of. Which city/society this house in located in. This will help gurus suggest a way out.
Thank you very much for the clarification. Actually the house was built on two five marla plots. Location is Lahore old rifle range.
The biyana deal is time barred.
Will there be any legel problem to buy one plot in such situation?
Isloo has explained it almost the core of the issue. Just to add:
- Assuming the house have physical seperation/division based on 5 Marla par part/division? At times people unify 2 plots to have 1 structure and such a case can be issue. Plot could be sold but how to divide the structure built on top.
- Yes, no matter what the previous terms and conditions or the deal itself need to be reversed/renewed. At the very minimum 2 parties can have even a hand written notes with thumbs and signature and that's legally valid but try to make that more formal. Better yet that reversed deal document need to be registered with Kacheri or whatever respective authority of that area/city.
- One way to secure your investment in such cases is to pay atleast 50% and get physical and written possession while rest 50% on transfer if lumpsum payment is an issue. With physical and written possession that all secure for purchaser than legal libailities are on the one who gets defaulted, i.e.;
** In case the owner can't transfer for whatever reasons legally no one can push out the purchaser since he is willing to pay rest 50% while owner is not able to transfer so law sides with one in possession!
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On a similar note, pretty obvious but make sure to pay token or whatever amount only to the guy having same ID and Name on Registry/Transfer letter!