Re: The Property / Real Estate Thread Quote:
Originally Posted by penpavan On reading it means that you cannot sell a property unless you have registered it!
Very major decision! So if this is true then you may expect that number of people doing flat/apartment/site squatting on the basis of only sale agreement (with the intention of selling the flat at higher price later) will decrease.
It categorically states that from now on, SALE AGREEMENT is no more a legal document and only SALE DEED is. |
Well the news paper report has mixed up two things leasehold and irreversible GPA. And some responses are confusing on agreement to sale etc. So let me chip in my understanding probably some lawyer friend can correct me If I am wrong.
1. Absolute sale deed was always the only 100% reliable document to prove the ownership and such properties which owners are free to sell were known as "free hold" properties.
2. Some individuals and companies were taking long terms lease ( example 99 years ) and then this lease was transferred to 3ed party.
Example Company A owns a shed and use for 10 years and then lease is transferred to Company B ( for rest 89 years) these kind of properties were known as "leasehold ". In this case The original lease document should state that the lease is transferable. The court order does not say anything about "leasehold" so no change in status as against some portion of TOI report.
3. Irreversible General Power of Attorney : In some cases in order to avoid registration charges people were making an irreversible GPA in name of another person , A GPA can be made on 200Rs stamp paper and usually authorities another person to do property transaction on your behalf / collect money. GPA is usually reversible but in some special cases a person can give irreversible GPA forgoing his own rights on property. This is similar to handing over property to another person ( Watch movie Bazigar for details on how an irreversible POA can cause damages ![Big Grin](https://www.team-bhp.com/forum/images/smilies/biggrin.png) ).
Till now transactions with irreversible GPA were not resulting in registration charges payment and the intermediary was able to do a sale ( 1 transaction instead of 2). This is made illegal and now the property should be necessarily registered in name of the person who is selling it.
However I think this brings no change to the GPA holder executing the sale on behalf of actual seller for example if you purchase a flat from some big group the person who executes the sale is an employee holding GPA to execute sale on behalf of company. Or a relative executing the sale as property holder is out of station etc.
Maybe some legal eagle can throw light on this. 4. Agreement to sale : This is an agreement between developer/seller and a buyer , This agreement does not confirm a sale/ownership but just lays down the specifications of development and schedule and price at which sale will happen. This agreement is basically a contract
The court ruling does not say anything to make it illegal.
Usually HFC /Banks loans to first buyer against the property itself and their representatives collect the sale deed at the time of registration but sale agreement was never a collateral in itself though HFC collect them for preventing buyers to transfer property.
If there is any breach in contract from either side they can still move to court IMHO So no change in status for first purchaser
4. Unregistered sale agreements even after development is over and property is handed over.
In case the sale deed is not registered it is clearly the fault of purchaser + seller of not registering and paying the stamp duty so now court is forcing them to register mandatory So you can not sell if you do not have registered sale deed with you
Last edited by amitk26 : 22nd November 2011 at 17:14.
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