The basic precaution is both the should sign the registered sale deed. The will solve all legal problems. So far payment is concerned both vendors should be paid the sale consideration in proportion to their respective shares in the property. Making any payment to one of the vendors may be challenged by other vendor.
Sale of property in joint ownership
I am purchasing a house which is currently registered in the name of a married couple i.e. husband and wife. Now the husband is asking to make the entire payment (including TDS) for the sale of their house in the name of his wife and he will give a NOC stating that he has no objections if the entire payment is made in his wife's account. Is it legally allowed? Any precautions which I need to take care of before executing the sale deed?
Asked 3 years ago in Property Law
Religion: Hindu
9 Answers
Since property is in joint names you should issue cheque for 50 per ce t in wife name and 50 per cent in husband name
mere NOC is not sufficient
1. If the husband gives a POA in favour of his wife to receive his share of the proceeds, then it's legally permissible.
2. The POA has to be registered in the Sub Registrar's Office.
Besides an NOC from the husband, you may narrate the fact that the entire sale consideration is made to the wife as consented to by her husband in the sale deed itself, to set at rest any dispute later, as a measure of extraordinary caution.
The NOC given by husband towards the mode of payment and favoring his wife would be sufficient to transfer the sale consideration amount in favor of his wife, however the TDS is to be made equally on both the names o enable them to file their ITRs and claim refund accordingly.
Dear client,
The payment being made in his wife's name and bank account seems to be fine since the property is on her name as well. However, the responsibility to deduct TDS on Property Sale rests solely with the Buyer even if it is financed by Home Loan or property is purchased from the builder. So, you are not required to pay the TDS amount to the seller. Please ensure that the payment procedure is being done in a well laid out and legal manner.
Thank you.
Its not legally permissible the said things are done to avoid taxes. First you need to ensure that the said things are agreed by him in writing before you deposit the money
- Yes, you can transfer the consideration amount in his wife account , as she is a joint holder in the property
- However, for paying full amount prior to execution of sale deed is not suggested.
Hi, you can make a payment to the wife of the Seller. However, both the parties will come and execute the Sale Deed in favor of you then only the valid title is pass on to you.
