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Friday, October 19, 2012

Validity Of “Unregistered Agreement For Sale / General Power Of Attorney/Will Transfers” - Supreme Court Ruling


This article is written by Sushant Shetty.

Power of Attorney General Special Banned stamp red
The Supreme Court, in the case of Suraj Lamp & Industries Pvt. Ltd. Vs. State of Haryana & Anr., held that the transactions of the nature of ‘GPA sales’ or ‘SA/ GPA/ WILL transfers’ do not convey title and do not amount to transfer, nor can they be recognized as valid mode of transfer of immoveable property and that the Courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property. The judgement was
passed by a Bench Justice R.V. Raveendran, Justice A.K. Patnaik and Justice H.L. Gokhale. A copy of the Judgement can be found here.
(To see How to Make a Will or get some Sample Will formats go here.)


1.         SA/GPA/WILL transfers cannot be recognized as deeds of title, except to the limited extent of section 53A of the TP Act as these are transactions, where a purchaser pays the full consideration for acquisition of an immovable property, but instead of entering into a Deed of Conveyance, enters into a SA/GPA/WILL for acquiring the right, title and interest in the immovable property, either at the instance of the vendor or at his own instance.



2.         The modus operandi adopted in such SA/GPA/WILL transactions by the vendor or person claiming to be the owners of the immovable property is to (i) enter into and execute Agreement for Sale / unregistered General Power of Attorney / Will / Agreement / Deeds/ Documents/ writings etc.; (ii) hand over / deliver quiet, peaceful and vacant possession of the immovable property to the Purchaser; and (iii) receive the Consideration as mentioned in the Agreement and to fully discharge the Purchaser from his / her / their / its obligation of payment of the agreed Consideration without payment of stamp duty and going through the process of registration.




3.         Details of three different modes of transaction with Court's comments in context of each mode :


A.        AGREEMENT FOR SALE



            (i) An Agreement of Sale by the Vendor in favour of the Purchaser confirming the terms of sale, delivery of possession payment of full consideration and undertaking to execute any vesting document as and when required in future.

                                                                        Or


            (ii)  An agreement of sale agreeing to sell the property, with a separate affidavit confirming receipt of full price and delivery of possession and undertaking to execute sale deed whenever required.






Court's  Observations


(i)         Any contract of sale (agreement to sell) which is not a registered deed of conveyance (deed of sale) would fall short of the requirements of sections 54 and 55 of The Transfer of Property Act, 1882 (“the TP Act”) and will not confer any title nor transfer any interest in an immovable property (except to the limited right granted under section 53A of the TP Act) for defending possession. According to the TP Act, an Agreement of Sale, whether with possession or without possession, is not a conveyance. Section 54 of TP Act states that sale of immoveable property can be made only by a registered instrument and an agreement of sale is not a document of transfer and does not create any interest or charge on its subject matter.



B.        GENERAL POWER OF ATTORNEY


            (i)         An Irrevocable General Power of Attorney by the vendor in favour of the purchaser or his nominee authorizing him to manage, deal with and dispose of the property without reference to the vendor.


Or

A General Power of Attorney by the vendor in favour of the purchaser or his nominee authorizing the attorney holder to sell or transfer the property and a Special Power of Attorney to manage the property.


 Court's Observations:


 (a)        It is revocable or terminable at any time unless it is made irrevocable in a manner know to law.

(b)        Except in cases where power of attorney is coupled with interest, it is revocable.

(c)        Even an irrevocable attorney does not have the effect of transferring title to the grantee.

 (d)       An attorney holder may however execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor.

 (e)        A power of attorney is creation of an agency whereby the grantor authorizes to do the acts specified therein on behalf of the grantor, which when executed will be binding on the grantee as if done by him. A power of attorney is a document executed for convenience of the grantor as well as the grantee as may be contemplated in transaction.



C.        WILL


legal Last Will and Testament Paper Document Estate, legal will document on paper with spectacles

  A will bequeathing the property to the purchaser (as a safeguard against the consequences of death of the vendor before transfer is effected).


 Court's Observations
    
 (i)         The two essential characteristics of a will are that (a) it is intended to come into effect only after the death of the testator and (b) is revocable at any time during the life time of the testator.

(ii)        Section 69 and 70 0f the Indian Succession Act, 1925, states that, if the testator who is not married, marries after making the will, by operation of law, the will stands revoked.

(iii)       Registration of a Will does not make it any more effective.



4.         Recourse to SA/GPA/WILL transactions is taken in regard to freehold properties, even when there is no bar or prohibition regarding transfer or conveyance of such property, by the following categories of persons:


(a)        Vendor with imperfect title who cannot or do not want to execute registered deeds of conveyance.



(b)        Purchasers who want to invest undisclosed wealth/income in immovable properties without any public record of the transactions. The process enables them to hold any number of properties without disclosing them as assets held.



 (c)        Purchasers who want to avoid the payment of stamp duty and registration charges either deliberately or on wrong advice. Persons who deal in real estate resort to these methods to avoid multiple stamp duties/registration fees so as to increase their profit margin.



It also makes title verification and certification of title, which is an integral part of orderly conduct of transactions relating to immovable property, difficult, if not impossible, giving nightmares to bonafide purchasers wanting to own a property with an assurance of good and marketable title.



5.         A SA/GPA/WILL transaction does not convey any title nor create any interest in an immovable property. The observations by the Delhi High Court, in Asha M. Jain v. Canara Bank - 94 (2001) DLT 841, that the “concept of power of attorney sales have been recognised as a mode of transaction” when dealing with transactions by way of SA/GPA/WILL are unwarranted and not justified, unintendedly misleading the general public into thinking that SA/GPA/WILL transactions are some kind of a recognised or accepted mode of transfer and that it can be a valid substitute for a sale deed. Such decisions to the extent they recognise or accept SA/GPA/WILL transactions as concluded transfers, as contrasted from an agreement to transfer, are not good law.



6.         The Hon’ble Supreme Court has enunciated that transactions in the nature of SA/GPA/WILL transfers cannot be relied upon or made the basis for mutations in Municipal or Revenue Records. What is stated above will apply not only to deeds of conveyance in regard to freehold property but also to transfer of leasehold property. A lease can be validly transferred only under a registered Assignment of Lease. It is high time that an end is put to the pernicious practice of SA/GPA/WILL transactions known as GPA sales.



7.         However, it has been submitted that making declaration that GPA sales and SA/GPA/WILL transfers are not legally valid modes of transfer is likely to create hardship to a large number of persons who have entered into such transactions and they should be given sufficient time to regularize the transactions by obtaining deeds of conveyance. It is also submitted that this decision should be made applicable prospectively to avoid hardship. Moreover the Hon'ble Court recommended that

            If S.A./GPA are entered before the date of judgement day, they may be relied upon to apply for regularization of allotments/leases by Development Authorities and that if the documents relating to ‘SA/GPA/WILL transactions’ has been accepted acted upon by DDA or other developmental authorities or by the Municipal or revenue authorities to effect mutation, they need not be disturbed, merely on account of this decision.



8.         The Hon'ble Court has categorically stated that its observations are not intended to in any way affect the validity of sale agreements and powers of attorney executed in genuine transactions. For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance. A person may enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings and in that behalf execute an agreement of sale and grant a Power of Attorney empowering the developer to execute agreements of sale or conveyances in regard to individual plots of land or undivided shares in the land relating to apartments in favour of prospective purchasers. In several States, the execution of such development agreements and powers of attorney are already regulated by law and subjected to specific stamp duty. The Court has observed that the judgement is not intended to apply to such bonafide/genuine transactions.







SUGGESTIONS


1.         Since operation of the judgement is to be effective prospectively, Central Government should come out with Amnesty Scheme for payment of stamp duty and registration of documents of such transfer where the title has not passed to real purchaser/beneficiary.



2.         Documents executed but not registered within prescribed period should be allowed to be registered after expiry of the prescribed period of 8 months, as stated in Section 23 of the Registration Act. Normally such documents are annexed to Deed of Confirmation which is registered. However, the Registrar invariably affixes stamp "Annexure Not Registered" which adversely affects the title.

            The Sub-Registrar should be instructed to register the original (duly signed) unregistered documents after the expiry of prescribed period without requiring the execution of Deed of Confirmation by both the parties provided that respective parties or their constituted attorney admits the execution before the Sub-Registrar.

            Where the Seller/his constituted attorney  is not available for admitting execution before the Sub-Registrar, such documents should be allowed to be registered with the Deed of Confirmation / Declaration by the Purchaser only.



3.         Where a Power of Attorney is registered assigning a power to the Constituted Attorney to enter into a Conveyance on behalf of the grantor then, the Conveyance can be executed by the Constituted Attorney on behalf of the owner in favour of the purchasers.



4.         Where Agreement for Sale is also registered, Conveyance can be executed only on Rs.100/- stamp paper to perfect the title and transfer the land revenue records in the name of the Purchaser.





Exception :

This will not be applicable to the cases where documents are not required to be compulsorily register u/s. 17(1)(b) of the Transfer of Property Act. Further this will not be applicable in case of Sale / transfer of flats, offices, units in registered co-operative housing society or limited company, as in such cases the title passes upon execution of a Agreement for Sale alongwith handing over of possession of the Premises and transfer of share certificates by the Society or the Limited Company in favour of the Purchaser.

The ratio of this judgement will not apply to transactions where the Developer has commenced the development work on the project in pursuance of unregistered Development Agreement.



Justice R.V. Raveendran, Justice H.L. Gokhale and Justice A.K. Patnaik:  Coram of the Suraj Lamp & Industries Pvt. Ltd. Vs. State of Haryana & Anr.
Justice R.V. Raveendran, Justice H.L. Gokhale and Justice A.K. Patnaik: Coram of the Suraj Lamp & Industries Pvt. Ltd. Vs. State of Haryana & Anr.



This article is written by Sushant Shetty.

Sushant Shetty Advocate Lawpoint licensed Maharashtra goa
 Sushant Shetty
Advocate
Sushant Shetty is a young Advocate, licensed to practice in the state of Maharashtra and Goa. He graduated from the Government Law College, and is currently working with one of Mumbai’s leading boutique Real Estate Law firms. His practice focuses primarily on Real Estate and Commercial Laws.






Keywords: GPA sales, SA/GPA/WILL transfers, General Power of Attorney sales, Special Power of Attorney transfers, registration, will india, Suraj Lamp  Industries Pvt Ltd  State of Haryana Anr, Justice R.V. Raveendran, Justice H.L. Gokhale and Justice A.K. Patnaik, Transfer of Property Act

63 comments:

  1. Appreciate this post. Will try it out.
    Also visit my page ; las vegas bail bondsman

    ReplyDelete
  2. hello sirs, S made an agreement to sell his property to G for rs.60 lakh and received 10 lakh advance on 03/03/2011 with some conditions like last period for regn. was 3 months from the date of agreement, after that the agreement stands invalid and if G fails to pay balance money and finish the deal with in the agreed period he would lose the advance money and if S refused to accept the balance money and finish the deal, buyer has to go to court and pay the balance amount and ger the property registered . and after 5 months of time no regn. performed. S returned 10 lakh advance money to G. but failed to collect the unregistered sale agreement. after that no communication served between them. after nearly one year. G tried to occupy the property and then S sent a letter mentioning details of retuned money and demanded old agreement. now G occupied the property and by giving some money to tenent. with out the concent of S tenent hand over the property to G and blocked S to enter the building and filed a case for regn. in dec 2012 and deducting the money given to tenent from balance amount of 50 lakh.

    now what would S do? he is not interested in that deal. wants to occupy his property. is it possible to forfeit the advance amount.

    ReplyDelete
  3. Hello Mr. Anonymous,

    Your matter is very straight-forward. As per the Agreement, Mr.S had every right to forfeit and retain the earnest money of Rs.10 lacs since Mr.G failed to pay the balance sum within the stipulated period of 3 months. The Agreement would stand automatically cancelled.

    Despite this, at his own option and out of good faith, Mr.S could even return the earnest money to Mr.G. I hope that Mr.S took a receipt from Mr.G while returning this sum. After this, the Agreement would stand automatically cancelled.

    Mr.G would have no more rights under the old Agreement and in the said property. Any attempt to forcibly occupy the property would be illegal. Since Mr.S is still the owner of the said property, Mr.G cannot deal with the tenants without the permission of the Landlord i.e. Mr.S.

    My advise to Mr.S would be not to accept any sum from Mr.G which be construed as revival/continuation of the Old Agreement or creation of a fresh Agreement. Since Mr.G has already filed a case, Mr.S will have to deal with that and simultaneously file eviction proceedings against Mr.G.

    I hope that this answers your queries.

    Best Regards,

    Sushant Shetty.

    ReplyDelete
  4. Dear Sir,

    I had sold a property for more than 80 Lacs to Mr. X. The cash received was also deposited in the bank by providing reference documents to bank. However there is another document that I had signed with buyer for a lesser amount that the buyer is using as a legal evidence. I had however filed my income tax with all back-up documents for the initial amount. Now I have received summon from IT. Kindly advise

    ReplyDelete
  5. Hello,

    Please explain to us the nature of both the documents entered into by you so that we can best solve your query.

    Best Regards,
    Mowing the Law

    ReplyDelete
  6. Sir,
    Appreciate this nice article with some clarity on various types of transactions and appreciate if some details are provided on below doubts:
    1) how long (duration) is a sale of agreement valid ?
    2) Mr.Buyer has entered into sale of agreement with Mr.Vendor for 10L rupees. Mr.B paid partial amount of 5L and then would like to withdraw or cancel this sale of agreement and like to get back the payments from Mr.V. What is the procedure ? and can we enter into a payment agreement that Mr.V will pay Mr.B the amount in instalments via cash, etf or cheques ? and whether this new agreement can be enforceable if Mr.V doesn't return full payment back ?

    Please help clarify. Thanks.

    ReplyDelete
  7. Dear Sir, I have a query and will be grateful if you can share your views on the same. I am the 3rd owner of a flat in a registered CHS and staying there since the last 18 years. The 1st owner who purchased the flat from the builder has it registered but the 2nd owner and myself have not registered the property (stamp duty has been paid in all the 3 transactions). Will there be any difficulty in case I find a buyer who wishes to avail of a bank loan, since the property is not registered?. Please suggest a legal solution to my problem. Thanking you in advance.

    ReplyDelete
  8. I am interseted in selling property in an area where registry is not being done (unauthorised colony). The buyers and their broker are comfortable with Notarized GPA/Agreemnt to sell/Will method, knowing fully that registry is prohibited and these sales are not valid as per SC judgement.

    My question is: Can I declare the consideration as Income from Capital gain thru sale of house property for IT return.

    ReplyDelete
  9. I am a registered agreement to sale of an immovable property holder. After 70 % of work with 70 % payment the vendor absconds and he is in police custody and his business is going to liquidation. In this case can I take the possession of the property after doing balance work by myself.

    ReplyDelete
    Replies
    1. Since you have a registered Agreement for Sale, I would say that you prima facie have a good title on the property. Depending on the terms of the Agreement for Sale, you can enforce the Agreement subject to making the balance 30% payment in favour of the Vendor. But you must ensure that the property is not attached by Court due to liquidation. Also assuming that Vendor is in police custody and since his credentials are in doubt, you must also ascertain that he has not sold/ agreed to sell the property to other person/s. Issuing a public notice for the same is a good way of finding this out.

      Delete
  10. Dear sir,
    I am in possession of property since few years and I am a beneficiary of tat property through Unregistered Will. Can I sale the property lawfully and legally without getting the Probate Certificate. And how does the judgement mentioned above affects me.

    ReplyDelete
  11. The father (who is no more), the Settlor, had settled a house absolutely in favour of his wife, the Settlee, out of natural love and affection through a registered Settlement Deed some 30 years ago.
    Query 1: Since there was no financial consideration involved, can we say that the Settlement Deed amounts to a Gift Deed giving absolute and sole right over the property to the wife?
    Later she sold this house and bought another house and again sold this to buy another land on which she constructed a house. The last house was recently sold by her through a registered sale deed to Mr. M.
    Recently her son has gone to court against the mother and Mr. M asking for a partition deed on the property and cancellation of the sale deed to Mr.M, claiming it to be ancestral property in as far as his father had settled a house in favour of the mother some 30 years ago. He has produced a seven year old unregistered "undertaking" presumably given by his mother stating that she authorizes him to construct a house in a part of the land and that she relinquishes all her rights on that part of the land.
    Query 2: What is the legal status of this unregistered "undertaking" given by the mother to her son? The mother is currently not available to clarify the situation. Kindly enlighten in view of Suraj Lamp vs Taate of Haryana case. case judgment or otherwise.
    Query 3: What is the overall merit of the case?

    ReplyDelete
  12. i had given some amount of money to one person and he had written an acknowledgement on a non judicial stamp paper that he had taken money from me and he will be returning in instalments but he did not turn up in doing so. now what will be the validity of that acknowledgement on a non registered non judicial stamp paper can i file a complaint in any local police station that he had cheated me

    ReplyDelete
  13. sir my mother had given some amount of money to one wife and husband when they had claimed that they will sell us some immovable property. they had taken the amount and had acknowledged the same on a non judicial stamp paper and it is not registered stating that they are taking money from my mother as a personal loan. after that they turned out to be illegal / false relationships with each other when we had asked the amount to be returned they did not turn up. now what will the validity of their acknowledgement on a non judicial stamp paper which is not registered. can we lodge a complaint in local police station stating that they had cheated us and lured money from us

    ReplyDelete
  14. Dear Mr/Ms. egeonfs,

    I have gone through your query and based on the limited facts, I will answer your query in serial order :

    1. (a) No. Settlement Deed is not same as Gift Deed. A duly stamped and registered Gift Deed is a proper title document.

    (b)Whether this property is "ancestral property" or not would depend on the facts stated in the court case.

    2. A registered "undertaking" is not a title document and would not amount to transfer or release of property, regardless of what the Suraj Lamp judgement would have to say.

    3. It would be wrong for me to give you a false impression of the merits of the case without knowing the entire facts of the matter.

    Best Regards,
    Sushant Shetty,
    Advocate.

    ReplyDelete
  15. hello sir,
    'A' made an unregistrad agreement to sell his property to B for rs.10 lakh and received 30000 advance on 20/05/2013 with some conditions like last period for regn. was 10 days from the date of agreement, if 'A' refused to accept the balance money and finish the deal, is 'Mr.A' can go to court and pay the balance amount and get the property registered?
    thank you.

    ReplyDelete
  16. Dear Sir,
    My Late Father has bought the Residential plot 1640sqyrds in the year 1998,
    I could find the original Sale deed copy and checked the EC which show him as owner, but recently when I visited the plot there was a house built on the plot, and when enquired house owner is showing a agreement of sale signed by my father.
    But how to validate that document,when Original Sale deed and EC is in my pocession.
    Kindly help in this regard, how to approach this matter.
    Pradeep Jupalli

    ReplyDelete
    Replies
    1. Dear Mr. Pradeep,

      Could you please tell us where this property is situated, since Property Laws differ from State to State.

      Regards,
      Team of Mowing the Law

      Delete
  17. can an unregistered power of attorney can deal with immovable property of value a few lakhs of rupees.the power of attorney is also not attested by sub registor.kindly advise.
    V.Natarajan

    ReplyDelete
    Replies
    1. A gift deed and transfer letters were signed and were submitted to the society for to transfer the share certificate and flat in my wife name in 1996 by my father, accordingly it was transferred by the society thereafter my father deceased in 2012 recently we have came to know that we should have registered the gift deed. please let us know that now what is to be done and how?

      Delete
  18. Dear Sir,
    We are two brothers and one sister. My sister got married 02.12.1984. My expired 2 years back and he has written will (not registered) in my name and my brother's name stating that my sister got married (for which my father spent) and her matter ins not necessary in this will. He has devided his property (2acres of agricultural land) to our brothers. My sister demanded Rs. 50,000/- from each (my brothers) while my parents were alive. We said ok and now aftermy father's death she is alsing equal share. Now we are prepared to pay more than what she demanded previously since she is our sister.
    Is she eligible for equal share?? We tried to compromise her but in vain..
    Kindly advice us.

    ReplyDelete
  19. We planned to sell our independent house in Bengaluru, where we are living and to this effect found a buyer. Post the negotiations and agreeing on a final price, we had a agreement for sale drawn up and had the same registered at the Sub Registrar's office. The Agreement for sale had a validity of 4 months which was mentioned in the agreement. During the 4 month period there was no exchange of money. Now that the agreement has passed the validity period of 4 months and the buyer still dilly dallying about paying any money, we are thinking of selling the property to any other prospective buyer. My question is can we do so? If so, do we have to get the registered agreement cancelled at the sub registrar's office or can we do the sale without cancelling the registered agreement? Does the Sub Registrar's office automatically consider the document null and void since the sale has not happened in the stipulated period?

    ReplyDelete
  20. what is the valid term of an unregistered agreement that ... written for sale of land it was on 20 rs stamp paper

    ReplyDelete
  21. in my case also same General power of attorney(to builder to built a apartment), join development agreement (to sell apartments on their each shares)also not registered. All the govt bankers are approved to provide loan (includes SBI,Syndicatebank). its ok to buy the flat which GPA and JD are not registered ?

    ReplyDelete
  22. i forgot add one more point the lnad was purchased by two persons and GPA (not registered ) given same two persons to builder and same for JD also. So please advice to can we buy that flat or not. What are the problems will come if GPA and JDA are not registered ?

    ReplyDelete
  23. Hello Sir,
    My father had purchased property from his friend. only sale of agreement has been done, property is not registered on my father's name. We have paid home loan and have clearence letter from Bank. We are in possession of flat more than 10 yrs. We are paying property tax and electricity bill on our name.My father is no more and now his friend claims the property. What can we do? what are the chances to win the case if we go to court.

    ReplyDelete
  24. I got a property registered in my name in bangalore in the year 1994 from that day i am paying the property tax , i have got A katha, BBMP approval for construction of house, when i started construction some pupil came and telling the property is theirs and it has been entered into gpa in their name in the year 1998 . They have unauthorisedly constructed the house. police are not co-operating telling the it is a civil matter go to count. please help and tell me what i should it

    ReplyDelete
    Replies
    1. I would advise you consult a local lawyer and first ask for an injunction on the illegal construction. Then you can put the other title documents before the court to prove your bona fides.

      Delete
  25. Quite a useful post. My uncle is looking to buy such legal practices for sale as they seem to know how to succeed in their profession. Do you think it is worth the investment?

    ReplyDelete
  26. hello sir
    this is a matter regarding my family property. one of my uncle got separated from our family during year 2000. he has taken his portion of property in terms of as per the valuation of property at that time. during the separation everything was notarised in front of two witness that he will not further claim any thing from property but after my grandfathers sudden death when we applied for the nomination of the property he filed case against us and now claiming for the property on the basis that the notary is not registered. is there any solution in this case please help me out in this case.

    ReplyDelete
    Replies
    1. All property transfer transactions even family arrangements are required to be compulsorily registered and not just notarized. However, this also depends on the specific facts of each case and place where the property is located. Since I am unaware of the facts in your case, I would advise you consult a lawyer to contest your case.

      Delete
  27. Hi Sir,
    I read this blog it has nice and useful information. It has a lot of info about property and its business.
    I am also doing the business of property. I like this business and want to get success. I will provide all the luxuries and quality in the properties.
    Buy Plots in Lucknow |
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    ReplyDelete
  28. Dear Sir
    we are 3 families living on 3 independent floors in delhi which we bought 35yrs ago from a builder, each having area 2250sqft on 4500sqft plot

    The builder constructed this building using complete FSI prevalent at that time and all three floors are free hold property with proper registered documents..

    The terrace and driveway are for common use and it also states that vendees do not have any right to construct on it..also it is no where in the agreement that vendor has any right to construct in case FSI is increased in future.its just for common use.
    now we 3 families want to redevelop the property using additional FSI,creating parking in stilt(a major prb in delhi's congested streets), put a lift for elderly, have a water proof terrace etc.
    we do not want to sell or make additional floor for business. we are afraid that if we demolish and redevelop,and the builder puts objection citing ambiguity in sale terms than we would be held ransom against our own house in a legal battle...
    we dont knw how to approach this problem legally. we tried getting NOC from builder but he asked price of a whole floor which is way too high and if we dont redevelop,no body gets anything from this and problems remain... kindly advice
    is there any way judiciary can interpret agreement and give us permission to execute the project.
    even though in ambiguous clause-if builder has any rights on terrace-he still wont get permission to use additional FSI for a new floor as he cannot satisfy equivalent parking space norms.
    kindly advice hw to settle this thing legally before starting redevelopment work.we do not want any legal battle if we start this as it involves the house we live in and we all want to do everything in legal framework

    ReplyDelete
  29. Dear Sir
    we are 3 families living on 3 independent floors in delhi which we bought 35yrs ago from a builder, each having area 2250sqft on 4500sqft plot

    The builder constructed this building using complete FSI prevalent at that time and all three floors are free hold property with proper registered documents..

    The terrace and driveway are for common use and it also states that vendees do not have any right to construct on it..also it is no where in the agreement that vendor has any right to construct in case FSI is increased in future.its just for common use.
    now we 3 families want to redevelop the property using additional FSI,creating parking in stilt(a major prb in delhi's congested streets), put a lift for elderly, have a water proof terrace etc.
    we do not want to sell or make additional floor for business. we are afraid that if we demolish and redevelop,and the builder puts objection citing ambiguity in sale terms than we would be held ransom against our own house in a legal battle...
    we dont knw how to approach this problem legally. we tried getting NOC from builder but he asked price of a whole floor which is way too high and if we dont redevelop,no body gets anything from this and problems remain... kindly advice
    is there any way judiciary can interpret agreement and give us permission to execute the project.
    even though in ambiguous clause-if builder has any rights on terrace-he still wont get permission to use additional FSI for a new floor as he cannot satisfy equivalent parking space norms.
    kindly advice hw to settle this thing legally before starting redevelopment work.we do not want any legal battle if we start this as it involves the house we live in and we all want to do everything in legal framework

    ReplyDelete
  30. Dear sir,
    I have received letter of administration from court and as per will I need to transfer 50% of rights of flat of Nasik to my sister. This means joint property was owned by my father and mother and after my father's death his share to be transferred to my sister. How this will be done now. How can my sister's name will be replaced and/or registered with authorities. Am I required to pay stamp duty for that portion again?(Required court fee was paid in the court while getting LOA)
    Thanks in advance

    ReplyDelete
  31. Thank you for sharing this information and Very good looking blog.
    I am bookmark this blog need some more post

    Dwarka Properties Portal

    ReplyDelete
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    ReplyDelete
  33. This is so nice post!!!!!!!!!
    Thanks for sharing this information with us.
    Flats for sell in south delhi

    ReplyDelete
  34. Dear Sir, I have a flat in Telangana state which is not registered and looks like it will be never be registered due to the conflict between landlord and builder.

    What is the procedure to follow If I want to sell unregistered flat

    Thanks in advance

    ReplyDelete
  35. Hi sir i have a doubt i have made a sale agriment for 20 cent land in 2004 in tamilnadu with Rs 100 bond paper and i pay full amount to the seller and i possicion of the land since the agriment because the seller going to abroud in agriment no time limit is mentioned for registration jest mention a line says when the seller returns from abroad then we will register.but now the seller refuse to register the land in our names can i ho go the court to register the land in my names

    ReplyDelete
  36. My uncle has nominated my name in the will for an office premises. However, to my utmost shock there is a person claiming that my uncle had sold that office premises to him by signing the agreement when he was in the ICU and he has remitted the proceeds to him. This agreement is not registered. Can I stand to claim and get what is rightfully mine?

    ReplyDelete
  37. Hi Sir,
    My Father had purchased a plot in the year 1983 from a land owner for which he got GPA done in my Mother's name in the same year 1983. My Father got expired in the year 1997. I was not aware that even the land owner was expired in the year 2001 (I was totally unaware about the land owner who he is & where he is staying and all till March 2015). Later in 2006 I got the same plot registered in my name for which I executed a sale deed in the same year 2006. Since then I have paid betterment & other charges to the government and finally successful in getting Katha-A done in my name and also i am paying all the government fees every year. Now in March 2015 when I went to sell the same plot, I got to know that the land owner had expired in 2001 some time. So now the buyer is telling me to get signatures from his remaining family members (original land owner has no children & he has adopted one guy) what is the next step in resolving the above problem & how to go about this problem further ? Please do the needful & thanks in Advance,

    ReplyDelete
  38. Dear Sir,

    Parents purchased landed property during ULC regime. The vendors were not able to do the conveyance of the property as they had more than 500 sq mtrs. The property was sold by executing Agreement for sale and for 30 years it was under the peaceful possession. Parents executed and registered Deed of confirmation and attached the agreements as annexure which are not registered.
    The district courts have observed that the names could not be transferred as the agreement is not registered and is one sided. Please let me know How to solve the matter.

    thanks

    ReplyDelete
  39. Hi Vikram ji,
    I had registered agreement of my shop in 2012. We agreed for payment As per builder and my mutual understanding of payment which i demand from builder for my Contractor job. But When time came of handed over of shop in 2014 they demanded me payment, they told me due breakup of partnership of builder , i should manage payment from second partner.
    And they started playing game. Before one month ago i know that they cancelled my shop by giving declaration letter. Can it be possible? How they cancel property registered agreement without my concern? 80 % amount of payment they have already taken? Than what can i do know?
    Please give me your valuable suggestions.

    ReplyDelete
  40. Hi Vikram ji,
    I had registered agreement of my shop in 2012. We agreed for payment As per builder and my mutual understanding of payment which i demand from builder for my Contractor job. But When time came of handed over of shop in 2014 they demanded me payment, they told me due breakup of partnership of builder , i should manage payment from second partner.
    And they started playing game. Before one month ago i know that they cancelled my shop by giving declaration letter. Can it be possible? How they cancel property registered agreement without my concern? 80 % amount of payment they have already taken? Than what can i do know?
    Please give me your valuable suggestions.

    ReplyDelete
  41. Dear Sir,
    My father had purchased a flat in the year 1984 and the agreement was done on a Rs 5 stamp paper as stamp duty was not applicable nor was it registered. If we want to sell the flat now,wear will be the procedure? Kindly guide us.

    ReplyDelete
  42. Dear Sir,
    A sold out his property to B,for a consideration amount of Rs 60,00000 . and sale agreement was executed ..the advance amount of Rs 20,00000 was received by A from B but B failed to pay the remaining amount what is the procedure to obtain the remaning amount

    ReplyDelete
  43. hello sir,
    I have entered into an agreement for bayana of an immovable property on non-judicial stamp paper of Rs. 50 where in there is an agreement to sell the property and specify therein the earnest money which was paid , whether this agreement for bayana is valid or not if not then what should I do if other party challenge this in a court?

    ReplyDelete
  44. Dear Sir,

    We have done a joint development with a builder for which the JDA was not registered. The project is completed and we have transferred the builders share through a sale agreement with no consideration from the builder.
    My question would be,

    How do we apply for a Khata for our share of the constructed property
    Do we have to pay capital gain tax as we have not received any compensation from the builder

    Thank You,

    ReplyDelete
  45. Dear Sir,

    A lady with a house in her name died in the year 2000. She had 1 son named "x" of age 40yrs now married and had 2 minor sons. Mr "X" made the non-registered sale agreement in 20Rs document for Rs 20000/- as advance in the year 2005, 4 blankly signed bonds, original house document, original patta with third person "Y". But the house was not sold till nov 2015, as he had not taken the death certificate & Heir certificate. I took initiative and received the death certificate & heir certificate to Mr "X" through court. And i bought the house for 2.5l with copy of patta & chitta, Encumbrance certificate for 30 yrs on dec 2015. Now Mr."Y" threatening us that he will file a case against me & seller with non-registered sale aggrement in 20Rs document for Rs20000/-, 4 blank signed bonds by Mr."X", Original House Document, Original Patta of house. Pls advice a solution, will he be able to file case. Property was in tamilnadu.

    Thank you

    ReplyDelete
  46. Dear Sir,

    I'm planning to purchase a property from my cousin. The said property cannot be registered because of legal issue with residential layout. Since the nature of issue is minor he was given building plan approval and SBI loan. He fell into lot of debts and he wants to sell now and I want buy the property. I'm planning to execute a sale agreement along with GPA. Is that legal approach ?. Any guidelines do so ? please help.

    ReplyDelete
  47. Respected Sir,
    Facts of the case:
    a) unregistered agreement to sell executed on 28.10.2005
    b) property is a flat under construction
    c) vendor is land owner who has entered into a development agreement entitled for 40 % share of flats
    d) 90 % of purchase price has been payed to vendor, balance to payed at the time of registration.
    e) purchaser has entered into a loan agreement with a public sector bank, from whom the installments have been disbursed.

    f) vendor has not yet executed registration of property , nor returned purchase price.

    what can the purchaser do in this case?

    ReplyDelete
    Replies
    1. Dear Sir housing society has sold building site to its member and executed a convayance deed in the year 1977. Then said conveyance deed was not registerd with sub registerar, haryna Whether the unregistered conveyance deed is a valid document

      Delete
  48. Hi ! Sushant,
    I have a flat in Goa,it was given on leave and license(11 months which is over) and the same person wanted to purchase it.we gave him POA(it's a notarized one)which is now revoked as the person is trying to cheat us and I believe he has already entered into an agreement with a 3rd party,And is not ready to handover our flat key and has renovated the flat without our concern.What should we do next,should we got to the cops and break the lock.

    ReplyDelete
  49. Hello Sir
    I want to purchase a 3 bhk property in Pune , but the apartment is not formed. The property is 10 years old. Its a society of plot holders where the builder has developed a building having 8 flats.
    The Apartment is not registered. Even the flat owner which I am going to purchase has not taken completion certificate. But he is having registered Documents ( Purchase Agreement ) , Commencement certificate, Sanctioned Plan. The owner applied for Completion certificate to Corporation but it is yet to receive.

    What should I do ? Should I purchase the said flat? Are the above documents sufficient to get an clear title for the said flat.?

    ReplyDelete
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  54. Please tell me that in Delhi at after which date notary GPA is not valid??

    ReplyDelete
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