Is it mandatory to Register a Construction Agreement entered for a semi finished flat. Should my Bank need a Registered agreement, where it is reimbursing me the investment incurred.
My Agreement of Sale and Construction consists of 2 parts one Semi finished Flat with Land, 2nd part reimbursement of expenditure as per progress of construction. 1st part i.e Land and Semi finished shall have Registration and Second part I do not wish have Registration as it carries high rate. The second part shall become infructuous, once the task is completed. Now my querry is Should my financing Bank needs Registration of Construction agreement , where I seek only reimbursement of investement incurred( Reimbursement is allowed up to 12 months as per Bank rules). I hope i am clear
"Registration" implies some governmental entity. If your bank has given you a construction loan, and the loan is secured by the property, they would want a copy of your construction agreement, but that's not "registration."
Your use of the terms "reimbursing" and "investment incurred" is incorrect. Your bank's making a loan, not reimbursing or investing anything, and on one incurs an investment.
What do your construction loan documents say? Have you got a loan broker you can ask about this? If not, and you haven't hired a lawyer to go over your construction loan and contrauction agreement documents, hire one now.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.