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Ebby Mathew
in Property Law
Asked March 07, 2018

Can buyers' relatives send money to the seller of property on behalf of the buyer?

  • 1 Answer
  • 106 Views

My mother is selling her flat which is fully owned by her to a lady buyer. The lady buyer wants to buy the flat fully in her name. The buyer paid a token amount of 1 lac through cheque from her own bank a/c. She says that the remaining amount of consideration will be paid by her relatives ( brothers, mother, sister, cousin) on her behalf from the relatives' bank a/c to my mother's a/c. Can my mother who is the seller of the flat accept cheques coming from the buyer's relatives' a/c ? OR is it compulsory that the cheques have to move from buyer's a/c to sellers' a/c . Is this above mentioned situation a legally valid transaction in India?

Answer 1

Better relative to transfer fund to buyer account and buyer pay directly to avoid any income tax issue in future.

 

Otherwise obtain letter from both parties towards payment on behalf of buyer for purchase of property. Preserve this letter with you permanently to answer any questions arises in Future.

Agree Comment 0 Agrees 4 months ago
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