I am buying a property (person C as mentioned below). Brief description is given below. 1. Property location in Co-hosting society. 2. Society is having bunglow plots with NA documents. Society is registered. 3. One of the plot, Plot no X is alloted to person A. I think that sale deed, possesion, OC etc in the name of person A is not available. Property was constructed partially in 1994 and work was stopped due to civil contractor issue. Civil contractor had taken advance amount for construction of property. Only pillar and foundation work was done and due to payment issue, he stopped the work. 4. Based on the allotment letter and share certificate, person A had sold his property to person B via agreement of sale in year 2011. During agreement of sale, all the amount was paid by person B. In one of the line of agreement copy, its is mentioned that " the sale will be completed by vendor on execution and registration of a deed of assignment and transfer in favour of the purchaser against the purchase paying the said purchase price, less the amount of part of consideration money paid as aforesaid." 5. As mentioned above, agreement of sale is registered in year 2011 at sub- registrar office. All the payment is cleared and copy of receipt for the complete payment is attached during registration process. Person B was not aware that he is signig agreement of sale and not sale deed. He was not aware of complete procedure. However payment of the said property was completed on the day of agreement. So instead of agreement of sale, he should have processed with sale deed. But due to lack of knowledge, he failed. 6. After completing the registration, index 2 is updated as agreement of sale. 7. After registration, Person B had not received any legal transfer papers from person A as per clause mentioned in point number 4. Also person A and B had not executed any sale deed there after. Only society share certificate is transferred to person B and person A name is removed. 8. Now person B wants to sell property to person C. 9. Is it legally ok to purchase the property from person B? 10. If yes then can I make sale deed directly in person C name and update the same in sale deed? 11. Will it make title clear? 12. If not, what is the solution for legal transfer/ sale of property so that person C can buy the property with clear title. 13. Person C wants bank loan for construction of bungalow after purchasing the property. However person C wants to purchase the land without any bank loan but wants to keep documentation complete so that he can present the same for loan purpose. 14. Further it is observed that Person A is not having any registration documents except letter of allotment and society share certificate which was done in year 1992/1994. Request you to advise so that we can finalize the deal with proper solution.
1) don’t purchase the property as seller does does not have clear and marketable title to property
2) sale deed should have been executed in A favour
3) mere allotment letter is not sufficient
4) in favour of B sale deed should have been executed as agreement for sale mentions that deed of assignment and transfer would be executed
5) bank would not sanction any loan as title is not clear and marketable
The title of both A and B are defective
A does not have a registered sale deed in his favour
Whereas B only has a registered agreement for sale which does not confer any ownership title despite his name being entered in the society records
You will find difficulty in getting the bank loan
For having a clear title A needs to register a sale deed in favour of B. As stamp duty is already paid on the agreement for sale, only Rs 100 will have to be paid on the sale deed as stamp duty
If the allotment letter to A was originally issued by the society then A would not need a registered sale deed
But if that letter was issued to A by builder then a registered sale deed has to be executed in favour of A by the builder which looks difficult
The title of B is not clear
9. The person B do not have title to the property even today, hence he cannot execute a registered sale deed in favor of the prospective buyer and it is not advisable to buy this property.
10. The person B cannot sell the property because he is not the owner of the property.
11. There's no title to the seller
12. Person B has to have the registered on his name first and then he can think about selling the property in future.
13. The purchase of property is not legally valid in the given circumstances.
14. If person A is not having any document to prove his title then the person B also cannot obtain sale deed nor acquire title to the property.
Therefore you may discard the idea of buying the property.
If suppose person A is not available as he is relocated to some other place or is deceased, is there any solution to transfer the property via sale deed or by any other means to B? During A & B transaction, acknowledge of recipt for complete payment is attached during agreement of sale. So on the same base, can it be converted direct to person B? Agreement of sale was done in year 2011. At that time the age of person A was approx 50+. Right now the age of person A will be 60+. The person had relocated to other state. So it seems to be difficulty to complete the paper wort. So just wanted to find some other solution if possible. Further just for knowledge purpose wanted to understand the process if person is
1) legal heirs of A can execute sale deed in favour of B on demise of A
B has to file a suit for specific relief seeking court direction to the person A to execute a registered sale deed in his favor on the basis of receipt for payment of full sale consideration amount.
Alternately it can pray to the court to register the sale deed on behalf of A is A is not traceable.
Dear Sir/Ma'am,
