Buy property from private limited company by registered sale deed
Buying a property from company vs buying a company
I want to purchase a property which is registered under a Pvt ltd company . I think I have 2 options 1. Purchasing a property from that Pvt ltd company or 2. Taking over that Pvt ltd company as new directors which have only that property on it. which one is the best one? why? what are the pros and cons for both?
Asked 2 years ago in Property Law
Religion: Hindu
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9 Answers
It depends you require the property for. What purpose. Then only I can tell you the same
The property has a hotel in it...
Asked 2 years ago
You can take over the private limited company
You can take a transfer of shares of that company from the existing shareholders
the property will continue to remain in the name of the company
only the shareholding will change
you will save on stamp duty and registration fee
but you will have to pay stamp duty on the share transfer forms
By becoming a director of the private limited company you cannot automatically own the proeprty that belongs to the company, it will still remain as company's property only until and unless the company is transferring this property by a registered sale deed to your name exclusively.
Therefore you can buy the property by a registered sale deed duly executed by the authorised representative of the company
You would like to buy the property and would like have vacant possession, in that case you should inform the seller to deliver vacant possession or else you do not venture into the purchase.
Buying the Property directly is a good idea.
As buying the company requires lot of Due Diligence and Continued Compliances
Then direct purchase is better
Dear Client,
Buying a property from that Pvt. Ltd. company is a better option.
Thank You
