• Purchase of endowment property

Dear Sir, I am looking forward to buy a flat from a builder in Odisha. The builder will be constructing 100 flats on the land. The land was purchased by the builder as follows:
A lady (X) had donated the land to a temple trust in 1962. The managing trustee of the temple had sold the land to another lady (Y) in 1982. No permission was taken from the Endowment Commissioner for the sale of land from the temple trust to lady (Y) even though the property in question comes under endowment.  The RoR for the land was issued by the Sub-Registry office in 1992 in the name of lady (Y). The Tahasildar while issuing the RoR had mentioned in the order that the land was sold by the hereditary trustee of the temple to lady (Y). 
Lady (Y) sold the land to the builder in 2010. The builder is now constructing 100 flats on this land. 
Is it safe to purchase the flat from the builder? Are there any chances of litigation in the future? Please advice.
Asked 2 years ago in Property Law from mimbai, Maharashtra
for sale of land belonging to temple trust prior permission of Charity commissioner is necessary . in present case no such permission has been obtained . if such sale is vitiated by fraud or collusion the sale of land can be challenged . 

dont take the risk of purchasing flat from the builder .
Ajay Sethi
Advocate, Mumbai
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Hi, permission form Endowment Commissioner is must.....get legal opinion before you purchase the property.
Pradeep Bharathipura
Advocate, Bangalore
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133 Consultations
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Purchasing this property is fraught with the risk of the sale transaction being declared illegal by a court of law in the event of it being challenged by any of the interested parties. The mandatory permission from Charity Commissioner was not obtained before the land was sold to Y in 1982, as a result whereof the same can be challenged in court now.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
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you have stated that land belonged to temple trust . that trust has sold the land without permission of charity commissioner . before purchasing flat better contact a local lawyer . take title search . based on certificate from local lawyer that title is clear and marketable then only purchase flat from the builder
Ajay Sethi
Advocate, Mumbai
23365 Answers
1223 Consultations
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Since the property was sold without permission having been obtained from the charity commissioner there could be title dispute already pending in a court of law. It is thus in your interest to engage a local lawyer and carry the due diligence test before purchasing it. The due diligence test will eliminate the possibility of you being mired in multiple litigations later on.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
Hi. pls verify the certificate date April,2014 and we are in March-2014.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
if local lawyer has given title search report that title of property is clear and marketable then you can on basis of legal advice purchase the property . generally for trust properties prior permission of Charity Commissioner is a must for sale of property.
Ajay Sethi
Advocate, Mumbai
23365 Answers
1223 Consultations
5.0 on 5.0
If the local lawyer has already given his report stating that the title is clear and marketable then you may go ahead and safely purchase the property on the basis of his legal advice arrived at after perusal of all the relevant documents. Your lawyer must have carried out an inspection of all the documents related to this property and then formed an opinion after applying his legal mind. There must be some clause in the concerned deeds/documents on the basis of which your lawyer has opined that the property can be purchased notwithstanding the fact that the same was sold without prior permission having been obtained from the Charity Commissioner.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0

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