• Suggestion about property purchase

"Person A " had purchased a flat 705 with full payment having carpat area approx 595 and also done registration for the same.However now refugee area(Fire space) is alloted on 7th floor due to that entire area of flat no. 704 along with some area of 705 is allotted for refugee area (fire space).Since carpet area of 705 is reduced due to fire space, builder is doing cancellation of registration done for 705 and will do the new registration for some other flat having same carpet area of 595 behalf of flat no 705 and assign the same to "Person A"

Note:

 Person A is out of India he had given power of attorney to his father for flat no 705.

Now builder is selling a flat no 705 to me whose some area is reduced due to fire space.

Sale agreement will be done between Me and builder after cancellation of earlier registration which was done with "Person A"

Kindly help me to know 

1) What are the other documents I need to take a from "Person A " or from builder to avoid any issue in future 

2) What are the additional clause I need to put in Sale agreement

3) Is I also have to take a old sale agreement which is cancelled for the flat no 705.

4) Is I also have to take a copy of power of attorney which was given by" Person A" to his father

5)Any kind of NOC/ Indiminity from Builder or from Person A

6) Anything else I had missed ..?? 

Your opinion about the same
Asked 8 years ago in Property Law
Religion: Hindu

7 answers received in 1 day.

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20 Answers

1. after getting special power of attorney no need to take any other document because this POA empowered you to do registration of flat on behalf of A.

2. you should mention old sale agreement in the exchange deed to show that it is not a resale but it is exchange, you can save stamp duty in exchange of flat.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

1. you have to take special POA from person A.

2. this is to be fresh registration instead of resale.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

1)you need power of attorney executed by A in favour of father

2)deed of cancellation executed by builder in favour of A

3)sale deed between you and builder would contain an indemnity clause wherein builder would indemnify you in case any claims are made by A or his legal heirs in respect of the flat

4) it would not be resale of flat . since sale deed is cancelled between A and builder fresh sale deed can be executed by builder in your favour

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

1) if wife is in India and can remain personally present it is not necessary for her to execute POA in favour of her father in law

2) if she is staying abroad she can execute POA in favour of her relative for execution of deed of cancellation

3) original POA will be kept by the builder. You would get certified copy of POA

4) you would get certified copy of deed of cancellation

5) it is not necessary to mention point no 1 and 2 in sale deed . Just keep copy of said documents for your records

6) A will indemnity builder only

7) your sale deed would contain indemnity clause from builder

8) you don't need NOC from person A as sale deed has been cancelled

9) since registered sale deed is being executed in your favour by builder you don't need NOC from builder

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

1) since flat is in joint names both A and B have to execute POA in favour of relative to execute deed of cancellation

2) mere POA by one of joint purchasers of flats would not suffice

3)you can incprporate clause in agreement regarding earlier agreement and cancellation thereof

4) no need to execute POA executed by A in favour of his father

5) not necessary to enclose deed of cancellation

6) obtain certified copy of deed of cancellation for your records

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

1) it is typographical error .

2) it should be read as no need to enclose POA executed by A in favour of his father

3) your understanding for point no 5 is correct . you just need to keep copy of cancellation deed for your records

3) keep certied copy of sale deed executed by builder in favour of A and his wife B

4) sorry for the inconvenience

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

Q. Since Flat is registered with the name of Person A & Person A wife so Is it required that both should give a power of attorney to father of Person A Or anyone of them(Person A /Person A wife) should give a power of attorney that will be ok.

POA should be executed by the both parties i.e. person A and B. you have to produce original POA at the time of registration of new flat. original sale deed is necessary to file if it is being exchanged other wise cancel this deed and made afresh deed in respect of new flat (old deed is not necessary to produce).

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

1) What are the other documents I need to take a from "Person A " or from builder to avoid any issue in future

The power of attorney deed given by A person to his father in original for the purpose of selling this property to a third person (please note that this deed should be a registered document); the original sale agreement held in his possession, all other documents the builder had handed over to this person at the time entering into the sale agreement which may include BBA, commencement certificate, plan and all other relevant papers.

2) What are the additional clause I need to put in Sale agreement

What is the additional clause you refer here?

Make sure to mention the actual sq. feet which is being bought now.

3) Is I also have to take a old sale agreement which is cancelled for the flat no 705.

Yes, that is a vital document

4) Is I also have to take a copy of power of attorney which was given by" Person A" to his father

Yes,

5)Any kind of NOC/ Indiminity from Builder or from Person A

If the cancellation of the sale agreement was done by a registered document, then NOC may not be necessary

6) Anything else I had missed ..??

Opinion from a local lawyer

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

1) What are the other documents I need to take a from "Person A " as earlier person A was the owner of flat no 705 whose registeration was cancelled or from builder to avoid any issue in future

You must obtain the original sale agreement between A and the builder and the original cancellation deed between the A and the builder, this apart, you must scrutinise all other original title link documents and the marketable title document standing on the builder's name or the original land owner etc.

2) What are the additional clause I need to put in Sale agreement.

That the builder/vendor shall solve or settle all the legal disputes that may arise if any in future

3) Is it will be resale or fresh registration for the mentioned property.

It shall be a registration in your name afresh.

3) Is I also have to take a old sale agreement which is cancelled for the flat no 705.

Yes.

4) Is I also have to take a copy of power of attorney which was given by" Person A" to his father

'Yes,

5)Any kind of NOC/ Indiminity from Builder or from Person A

If the cancellation of the sale agreement was done by a registered document, then NOC may not be necessary

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

1) Since flat is registered on the name of “ Person A & Person A wife” and both are out of the country . So is it required that both i.e “ Person A & Person A wife ” should give a power of attorney to Father of Person A for a mentioned flat Or It will be ok if anyone of them either Person A or Person A wife gives a power of attorney to Person A Father who reside in India and will do further cancellation process behalf of them…etc.

If the property was registered on both the names, then both have to execute a joint or separate power of attorney deed (s) in favor of the power agent so chosen, as both the persons have rights in the property.

2) If it works like either from Person A or Person A wife gives a power of attorney to Person A Father then should we required any noc ,clause from other person from whom POA not provided/issued to Father of Person A

If the other joint owner has not executed a POA from his/her side then the act done by the power agent on behalf of one joint owner alone would not be legally valid until the other joint owner also expresses his/her willingness to cancel the registered document. She/he can make a claim on the later date, hence a NOC is also not valid or recognised in law.

Should I also have to put a paragraph/clause in a my sale deed describing that "Earlier the flat was registered with the name of “Person A & Person A wife” with so and so registration no and which was cancelled with so and so reason by making cancellation deed with so and so cancellation deed no" along with the indemnity clause wherein builder would indemnify me in case any claims are made by A or his legal heirs in respect of the flat. Please sugge

The builder can be made responsible for solving any litigation that may arise in this regard by making a recital to that effect in the fresh registered sale deed.

You do not have to add any other irrelevant phrases.

Should I have to attach a certified copy of POA executed by Person A in favor of father in My sale deed while doing a registration of sale deed so that POA will also get registered along with the sale deed. Or should i not attach a POA in my sale deed and will just register the sales deed and will keep a POA for my records.

You obtain the POA deed and keep it with you along with the registered sale deed which would be required to submit to the b uyer at a later stage when you plan to sell the property.

Should I have to attach a certified copy of deed of cancellation in My sale deed while doing a registration of sale deed so that deed of cancellation will also get registered along with the sale deed. Or should i not attach a dead of cancellation in my sale deed and will just register the sales deed and will keep a deed of cancellation for my records.

You can keep the cancellation deed as well as the original sale agreement entered by A with the builder along with your registered sale deed.

Should I need to take a cancelled sale deed which was earlier registered with the name of “person A & Person A wife” Or Not required to take the cancelled sale deed

Read the above answer

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

Should I have to attach a certified copy of POA executed by Person A in favor of father in My sale deed while doing a registration of sale deed so that POA will also get registered along with the sale deed. Or should i not attach a POA in my sale deed and will just register the sales deed and will keep a POA for my records.

You do not have to attach any document while registering the sale deed in your favor, you can obtain all those relevant documents and make a mention about all the documents that have been received by you in the registered sale deed document so that it can be evidence of all the documents that have been handed over to you at the ti,me executing the registered sale deed in your favor.

If it works like either from Person A or Person A wife gives a power of attorney to Person A Father then should we required any noc ,clause from other person from whom POA not provided/issued to Father of Person A

It is incorrect and invalid if the other joint owner has nbt executed a power of attorney deed either jointly or separately to sell her share share in the property, therefore the sale deed cancellation transaction done by the power of attorney agent on behalf of only one joint owner shall not be considered as valid cancellation and proper as per law. NOC is not accepted for transfer of immovable property, registered POA document only shall be considered as a valid transaction.

Since flat is registered on the name of “ Person A & Person A wife” and both are out of the country . So is it required that both i.e “ Person A & Person A wife ” should give a power of attorney to Father of Person A for a mentioned flat Or It will be ok if anyone of them either Person A or Person A wife gives a power of attorney to Person A Father who reside in India and will do further cancellation process behalf of them…etc.

As both are joint owners, both have to execute a cancellation deed jointly or both have to authorise a person to do this task ion their behalf, a POA by one person alone will not be sufficient and it is invalid in law.

Should I also have to put a paragraph/clause in a my sale deed describing that "Earlier the flat was registered with the name of “Person A & Person A wife” with so and so registration no and which was cancelled with so and so reason by making cancellation deed with so and so cancellation deed no" along with the indemnity clause wherein builder would indemnify me in case any claims are made by A or his legal heirs in respect of the flat. Please suggest

You can leave all these issues to the document writer who will draft everything carefully and properly and you can confirm the same to your satisfaction later on.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

As suggested by you ," Sale deed between Me and builder would contain an indemnity clause wherein builder would indemnify me in case any claims are made by A or his legal heirs in respect of the flat "

along with that should i also have to put a paragraph describing that "Earlier the flat was registered with Person A with so and so registration no and which was cancelled with so and so reason by making cancellation deed " along with that should i also describe the indemnity clause wherein builder would indemnify me in case any claims are made by builder or his legal heirs in respect of the flat

This indemnity clause would be part of the recital of the registered sale deed that is being executed in your favor. These are routine issues which will be taken care of by the document writer/builder.

Should I also have to take a separate indemnity from the Person A or Indemnity from builder mentioned in point 4 will be suffice. If yes then should I have to add that Indemnity doc in a sale deed so that it should get registered along with the sale deed

Not necessary, the recital in the sale deed to this effect shall suffice.

Should I have to take any other NOC from Builder or Person A with regards to mentioned flat and if yes then What are the additional clause I need to put in NOC with regards to Builder & Person A and

7-a) should I will get Original Copy of NOC or i will get Xerox Copy for the same and after getting the same should i have to add that NOC in sale deed so that it should get registered along with the sale deed.

What NOC are you referring to?

NOC cannot solve any problem at a later stage when there is a legal dispute in this regard.

)Kindly add additional comment which should be done for this regards so that document should be strong so that i will be safe in future.

Obtain proper legal opinion by producing all the relevant papers/documents before an experienced lawyer and get fully satisfied by clearing all your doubts in this regard before venturing into the purchase.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

The builder cannot execute registered rectification deed in your favor if there is no registered sale deed executed in your favor so far.

The rectification deed can be executed only on the previous sale deed where there was an error in that sale deed, rectifying the said error.

Since you are buying the property afresh, you need to have a fresh registered sale deed with the clauses what you have discussed so far, do not agree for any rectification deed, this would not be proper as per law.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

In case deed of rectification is executed by builder you don't need any other documents as it is first sale of flat by builder to you

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

Process of rectification deed is correct

Builder can execute fresh sale deed on your favour as A and his wife will not have any claim on flat 705

You don't need to take any further documents from builder or A

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

What is this rectification the builder is now referring to?

If the previous buyer would like to cancel the registered sale agreement then what is the problem with the builder to execute the registered cancellation deed?

Why is he insisting a rectification deed?

As a matter of fact the previous buyers have not got the registered sale deed in their favor, it was just a registered sale agreement, then where is the question of rectification deed comes in now?

If the previous buyer wants to buy some other flat other than this then he may have to cancel the present agreement and go for a fresh sale deed for the new property that he intends to buy now.

Basically it is just a registered sale agreement and not a sale deed lying on the previous buyers name.

Until they do not execute a registered cancellation deed, the encumbrance on them shall remain in tact which will create problems for you at a later stage when you intend to sell this property or trying to avail loan from bank or any financial institution.

The rectification idea what the builder now proposes to execute is absolutely incorrect and agaisnt the law, do not agree to this proposal, it may cause a long time head ache to get the details clarified if there is a problem in the future.

Though the builder has indemnified that he will solve all the legal disputes in this regard in future, he may not be available after two years to solve or even help you tide over the legal crisis that may arise after that and you will become helpless at that time facing all the hardships and difficulties all alone.

Better take an advise from a local lawyer too by narrating the entire stories on the basis of the documents in your possession.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

1) obtaining refund is tedious process and it should take around 90 days as mentioned by the builder

2) there is no need to have cooling after entering into deed of cancellation

3) no need to have cooling period after execution of deed of rectification

4) if flat number , carpet area is wrongly mentioned then deed of rectification should suffice . It is not necessary to execute cancellation deed

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

1.It is not understood that why builder keeps you misguiding by saying one or the other flimsy reason. You tell him that you are ready to wait for 90 days.

2. There is no such waiting period you can register it on the same spot also.

,3. After rectification if there is no cancellation deed then no use of rectification deed.

4. If the buyer would retain the property then he can ask the vendor to execute a rectification deed. In your case the buyer will not come into picture after rectification deed, then who will cancel the sale agreement after that.

You should consult a lawyer in the local before proceeding.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

1) father can execute cancellation deed on behalf of his son A on basis of POA It is better wife comes down to India for cancellation deed

2) however POA should be duly registered in India

3) notarised POA would not suffice

4) registration of POA is mandatory

5) even if POA is issued in favour of family member registration is required

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

1) Since Person A and His wife both are out of india and can’t be physically present for executing a cancelation deed .

Is POA mentioned above with some points which was executed by Person A and his wife in favor of Father of Person A in the year of 2013 will suffice so that father of person A can Now execute the cancelation deed for the property purchased in the year of 2015…??

Since the power of attorney deed is not a registered document, the power agent shall not be eligible to execute a registered cancellation deed on behalf of his principal.

For all the transaction in respect of the immovable property to be done through the power agent, the power of attorney deed in his favor has to be a registered document.Registration of such document is mandatory under law, then only the power agent will be allowed to perform such transaction.

2) POA which was executed by Person A and his wife in favor of Father of Person A in the year of 2013 is not registered in Sub-Registrar office. It is(POA) notarized by a advocate and having Some Notary Registered Number like: 1534/201 |31 07|2013.

Is this Notarized POA will work for cancellation deed or it is compulsory to have POA registered and notarized POA will not work for executing a cancelation deed. (To whom POA is issued is father of Person of A )..???

The anser to Q.1 above suits this too.

3)Is notarized POA which was executed by Person A and his wife in favor of Father of Person A will work for cancellation deeds. So based on that POA, Father of Person A can execute the cancellation deeds behalf of Person A and his wife…??

The answer given to question No.1 will be applicable to this too.

4) IS power and authorities mentioned in POA (Please refer above Point Marked between the arrows ) Is enough based on that Father of Person A can execute the cancellation deeds behalf of Person A and his wife..???

The contents are okay but remember that the unregistered power of attorney deed is invalid for the transactions in respect of the immovable property.

5)Is it valid that POA executed in the year of 2013 and property purchased in the year of 2015 and based on the POA executed in the year of 2013 Father of Person A can execute the cancelation deed now for the property purchased in the year of 2015…??

When the unregistered power of attorney deed is not valid then the question of other issues do not arise.

6)Is It required to registered the POA even if it is issued to Family Member Like above where Person A and His wife had issued a POA to father of Person A….??

Yes, the POA deed has to be registered for any transaction with regard to immovable property, there is no question of relationship between the agent and the principal.

7)To which relation it is compulsory to registered a POA ..?

What is your question? Dont you want to understand the law?

Any POA deed between any person with regard to any transaction of an immovable property, the registration of the said deed is a mandatory requirement as per the provisions of the registration act.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

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