Hi, you can register the property in your name and you can mention that you can show the sale consideration less that the market value and other party will acknowledge the receipt of the amount in the year 2011 it self and you need to pay stamp duty and registration charges on the market value of the property.
Safety for loan disbursed
Hello, I had given 53 lakhs (50 cash, 3 cheque) to my supplier ( deals with metal articles) in 2011, as he wanted to buy a house property. He bought the property using my money, registered in his wife's name and has handed over the title deeds to myself. He has been paying interest and installments on time till 1 year ago. Now he has defaulted on interest and installments for a period of 1 years and now I am in a fix. The party is a man of good character and is now requesting a further loan of 10lakhs, which I am ready to give provided my full amount is secure. The market value of the property is 90lakhs. He is occupying the house along with his 2 kids. He has leased out 2 portions in the backside of his house for 4 lakhs each. 1. I want to register a sale deed in my name. The sub reg value is around 50lakhs. I cannot register for 50lakhs coz I have already paid him that amount in cash in 2011 and now I cannot generate that kind of money in a/c. What are the different ways in which I can show sale consideration to safeguard my entire amount. 2. Can i show that we did a "agreement to sale" in 2011 ? Can I show that I had given him some metal articles worth 20-30lakhs over a 5 year period. Whats the bearing of this on my Tax returns? 3. After registration, in case he defaults again, how shall i get back the possession of the property? 4. Also, he says 2 tenants will vacate if we give back their 4lakhs. Incase I wish to sale the property to a 3rd party, who request possession of the property. How Shall i vacate these tenants peacefully? 5. In the end, I want to sell this property, recover my dues. I have to pay registration charges, property gain tax etc to recover my money. How shall I make this the onus of my supplier.?
Asked 6 years ago in Property Law
Religion: Hindu
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7 Answers
1)have you declared payment made of Rs 50 lakhs in cash in your income tax returns ?
2)sale deed should mention consideration amount has already been paid
3) it can be mentioned that you have supplied goods . however said sale should have been declared .
4) best option is for his wife to sell the property and repay your loan
5)if wife refuses then after sale of property to you ask the seller to enter into registered leave and licence agreement
6) if licencee fails to vacate premises you can file suit for eviction against him
7) similarly you have to file eviction suit against tenants
1) the property is not on your name so you will be not entitled for property gain tax.
2) you can sell directly property to third-party and recover your money, ask the party who is staying there at what cost they want to sell their property. In this case you can save tax and your name will also not come in picture. Ask him to give in cash that how you have given him the amount in cash.
3) After paying money to tenants they can vacate the property as said by him see the agreement clause.
Dear Sir,
If I view your past and present proposed transactions are irregular, though I cannot say it as illegal. You cannot advance money on interest. You cannot do any monetary transaction in case above Rs.20,000/- as per RBI directions. Thus if we are too sensitive then our every step will become irregular then turned to be illegal. The solution for your transactions lies with the Chartered Accountant. Be cool and disclose nothing on public platforms which are irregular or illegal. Best of luck, you will get solution, not to worry much.
Hi,
You may get a registered/notorised agreement too and you may thereafter convert in to sale deed later. He may not default again keeping in mind the conditions of agreement and in case of default, you may acquire that property.
1. You can prepare a back dated unregistered sale agreement as on the date of his borrowal.
Create record for periodical renewal.
Now get it registered by paying stamp duty alone.
Show the amount given by cash on that date.
2. You can take a safe route of sale agreement itself.
3. As it is not valid to register the property when it is under mortgage loan.
4. First you get the tenants vacated before selling it again.
5. It involves certain strategies, you may have to discuss all such issues in person with a lawyer
It's better you execute a sale deed or gift deed of the said property in your favour all other ways will be futile. Any other transactions shown will have tax implications. Once you execute gift deed you can vacate the tenants by giving notice or can wait till expiry of the lease agreement.
