• Reselling before getting possession

The builder registered the flat in favor of X as per allotment after receiving all the amount agreed for including service Tax,VAT and maintenance for one year.but yet to give possession.But due to some hardship X want to sell the flat and get registered in favor of Y .Is it safe for Y to buy the flat before X got the possession ? Whether the builder will give possession to Y without any hassel ?
Asked 7 years ago in Property Law
Religion: Hindu

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9 Answers

Under a tripartite agreement or arrangement all the three parties tothe property may arrive at an agreement for selling the property to a third person by the builder directly without taking any NOC from the vendor.

It would be more safer.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

I am a govt.service holder.I want to buy the property from my means I got as a long term capital gain. Can I purchase the property jointly with my wife who is a housewife?

Yes you can purchase the property jointly or singly

There is no restriction for this proposed item

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

Dear Sir..

you can purchase the property jointly ..

Regards

Mob-No-[deleted]

Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0

1)in such a case X should obatin no due certifcate from the builder that full consideration has been paid

2) further transfer charges should be paid by X to builder and on basis of NOC by builder X can sell the flat to Y

3) in such a case builder would give possession of flat to Y after obtaining OC

4) ideally tri partite agreement should be entered into between the seller , buyer and builder

Ajay Sethi
Advocate, Mumbai
95208 Answers
7609 Consultations

5.0 on 5.0

1) Section 54F of the Act provides that if a tax payer invests the sale proceeds received from the sale of any capital asset for buying a residential property; the long-term capital gains on sale of the property would be exempt.. you are at liberty to purchase flat in joint names from sale proceeds received by you

2) section 54F being a beneficial provision, enacted for encouraging investment in residential houses should be liberally interpreted to include investment done in the spouse’s name too.

3) The Delhi High Court observed that section 54F does not require that the new residential property should be purchased in the name of the tax payer; it merely says that the tax payer should have purchased / constructed a ‘residential house’.

Ajay Sethi
Advocate, Mumbai
95208 Answers
7609 Consultations

5.0 on 5.0

If the sale deed has been executed in favour of Mr.X then title has passed to X who can convey it further. X can execute the sale deed in Y's favour and also execute a Power of Attorney in favour of the builder to authorize him to deliver the possession to Y.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Even if you purchase the property jointly with your wife you will still qualify to avail the long term capital gain tax.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Hi

Since the registration has been completed in favour of X and all taxes paid, X is the actual owner of the property and has all the powers to sell the flat.

Mr.X should get a No objection Certificate from the Builder that all dues has been paid and hence the builder WILL handover possession to Mr.Y.

No objection certificate from builder should be part of Registered sale deed entered in to between Mr.X and Mr.Y

Yes. You can purchase the property jointly with your wife and still claim Capital gains tax benefit.

The courts in various judgments have always construed Section 54F of Income tax act as beneficial piece of legislation and has permitted assessee's who had purchased properties jointly in the name of spouse and self to claim capital gains tax benefits.Judgment in CIT v. Ravinder Kumar Arora [2011] 15 taxmann.com 307/203 Taxman 289 (Delhi) and many other Judgments can be cited in support.

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

1. The seller even before getting possession of the property can sell the flat.There is no legal impdiment in it.

2. However do talk to the builder to find out whether any complciations is there behind delay in delivery of possession.

3.You can very much buy thisproperty jointly with your wife.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

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