1) 50 per cent cheque should be in favour of father and balance 50 per cent in name of son
2) dont issue full consideration amount in favour of father only
Clause & suggestion required for property purchase
Hi, There is one commercial property in Malad Mumbai registered with the name of father and his son. I am interested to purchase the property, here I need a clarification on below point. 1) Is it correct to make a payment via chaque in the favor of only father against the said property if not what is correct way? As seller (Father) need a all payment on his name and both that is father and son will be available for registration the property on my name. 2) If not what should be the proportion for making a payment to Father and son as document not containing the share and proportion against the said property. 3) Please suggest the way or clause…etc so that I can make the entire payment to father and I should not face any issues in future. Below are the clause which I think to add in my agreement if it is not there: 1) Should there be any claim in respect of the Said Premises from any person or persons or any other authority pertaining to any period prior to the transfer of the Said Premises in the name of the Purchaser, the Vendors hereby agree to indemnify the Purchaser against any such claims by settling such claims from their own funds only and taking all the legal responsibilities upon them. 2) The Seller hereby undertake that whenever required to do so from time to time hereafter execute and sign or cause to be executed and signed all such letters, forms, applications, deeds, documents, writings and papers, if any, for more perfectly securing, assuring and effectually transferring the said premises unto and to the use of the Purchaser forever.
Asked 4 years ago in Property Law
Religion: Hindu
15 Answers
1. Cheque in name of both the owners should be given son if wish can gift father that amount then.
2. 50-50 ratio.
3. SEE technically it should be given to both equally if son in writing confirm that his share can be transferred to father then only proceed with registration.
4. Indemnity clause is perfect.
5. This clause can be added.
1. ONCE a Sale Deed has been registered by Father & Son, with their joint & mutual signatures, THEN the Seller party loses "ALL" rights to dispute over the payment ratio that needs to be given to Father /Son.
2. However a relevant clause in the Sale Deed may be added wherein the recital mentions that 100% payment will be collected by Father and that Son has no objection or claim on the same.
3. Additionally, you as the Buyer-party, may take a "irrevocable indemnity bond" jointly & mutually executed by Father + Son, indemnifying you against any probable futuristic legal disputes /claims /losses of whatever kind.
4. The clauses mentioned by you are standard clauses and must be incorporated in each Sale Deed.
1.You can draw the cheque in favour of one co-owner only but then there should be clause added in the sale deed which says that the cheque will be drawn in favour of one co-owner only. The sale deed has to be executed by both co-owners though unless one is holding a GPA in his favour of behalf of the other co-owner.
2. The clause no.1 extracted by you is not in proper legal language.
1. simply insert a clause stating that on the instructions of the vendor parties, the purchaser has issued the cheque in the name of the father to which the co-seller son has no objection
2. the clauses stated in para 3 of your query are standard clauses which are always a part of the sale deed
Sir,
The mode of you paying the seller has to be mentioned in your agreement. Even if it means you paying only to the father and not the son. This is the most crucial part to be mentioned in your Sale Agreement which determines that the sellers in future does not claim any further amount with regards to the particular premises.
Yes you can add the two points mentioned by you in your Sale Agreement as, as of today you as the prospective buyer is unaware that the seller had in the past procured any loans, mortgages over this particular premises.
Hi all, Thanks for your valuable suggestion. With reference to above suggestion If I have to make entire payment to one party i.e to father only and not to son who is the other party of the said premises , then please suggest the exact clause which I need to mentioned in the agreement so that I can’t face any issue in the future . It will be great if the exact clause will be provided so that I can refer the same clause for my agreement. Thanks in advance....
Asked 4 years ago
Father and son are the co-owners, and jointly owning the immovable property. So, the sale consideration has to be divided equally into two by virtue of sec. 46 of the Transfer of Property Act which prescribed that where immovable property is transferred for a consideration by persons having distinct interest therein, the transferors are, in the absence of a contract to the contrary, entitled to share in the consideration equally.
1. It is better you make the payment for sale consideration to both of them or obtain a letter giving no objection from either of the party who would like to get the payment done in favor of the other joint owner alone duly witnessed and if possible notarised.
2. Since they both are joint owners, they are entitled to an equal share in the property hence you can make payment to both by dividing the sale consideration amount into two and settle one each.
3. See the first answer above.
There is no clause or provision i law particularly operating for this purpose.
It is based on the prevailing circumstances only.
You do not have to make any mention about this in the registered title document, instead you can obtain a notarised NOC from his son for making the payment in favor of his father alone, this will serve the purpose.
1. The clause can be mentioned as :
The vendor No. ____ i.e. ________________ agrees and accepts that Vendor No.______ shall recovery consideration on his behalf which he acknowledge and give consent as receipt of the complete consideration.
You can make the other party exclusive payment but and make father has confirming party in the agreement
Please contact local property lawyer for more precise guidance. This is not such easy to provide clause for agreement.
This is my response to you:
1. Your query can be answered only if you show the documents to a lawyer;
2. The lawyer will need to vet the old documents, the earlier sale deed and then only he can give you an informed opinion;
3. The payment must be made to whosoever is the owner/s of the property;
4. It should be very specify to the owner and the receipt should be signed by the party/parties;
5. Consult a local lawyer and take steps.
Yes you can make payment only in name of father and take signatures of both owners on agreement.
There is no exact clause which needs to be added.
Only mention that the payment shall be done in the name of the father through RTGS / NEFT / Cheque etc.