1) gift deed is not illegal
2) first wife children have no rights on the property
3) not necessary to obtain their consent
4) first wife son cannot claim rights on property as it is self acquired property of donor
Respected sirs. I was planning to buy a residential building in bangalore. and following was revealed during legal verification. 1. The wife of the owner gifted this property through a registered gift deed. ( unconditional) 2. She bought it from a third person through a valid sale deed (making it self acquired for her) 3. It was found that the person had married earlier and he has 2 children from first wife. both are married and settled. 4. There was NO divorce happened with first wife. But they are living separately for over 20 years. 5. The second wife married this person with the knowledge of him being married. first and second family are not in good talking terms. I consulted few lawyers for the validity of Gift deed, and rights of children from first wife, but I got mixed opinion. I would appreciate few more suggestions before i make my final decision My questions are Q1. Owner is Hindu, so the second marriage is illegal, is the gift deed also illegal? in this case what option do we have? Q2. Does any of the first wife's children have any sort of rights on this property,? Q3. In any case is it a must required to take the first wife or children consent? Q4. Assuming answers to my first 3 question are in favor of buying, then is there any case for first wife's son to claim rights on property post sale? Thank you in advance.
1) gift deed is not illegal
2) first wife children have no rights on the property
3) not necessary to obtain their consent
4) first wife son cannot claim rights on property as it is self acquired property of donor
1. The gift is valid the marital statues don't invalidate the gift if given by valdi deed and registered.
2.No it is self acquired property in life the children has no claim.
3. No they donot have any right on the property.
4. No sir it is self acquired property and it is given by valid will and purchased by valid sale deed there is no claim of son or any third party the title of the property is clear.
1) There is no concern of any one that wife is legal or illegal to take gift as any property. Gift deed is gift deed. A person who owns the property and wish to give his property any well wisher. So its totally depends upon donor to whom he or she should donate the property.
2) If father ir person is alive than nobody has any rights on the property, but father or person is not alive than his first wife and children has legal rights on the property.
3) If father or that person is not alive than concern of first wife and children arise.
4) Go as per Hindu Succession Act.
1. Gift deed does not become illegal. The second wife will be considered a stranger to the donee. In that case the gift deed will be taken to be a sale deed.
2. When you buy this property and lodge the sale deed with collector for ascertaining stamp duty, then you may be required to pay deficit stamp duty on the gift deed with penalty. This is offcourse if it becomes public that the second marriage happened during subsistence of first marriage.
3. Also there is penalty on the persons for entering into transactions in order to evade stamp duty. In presence of first wife, the transaction of gift between second wife and her husband will taken to be as a sale. People execute gift deed in favour of relatives as the stamp duty is less on such gift deed compared to gift deed between strangers.
4. Second wife bought the property through a sale deed. So it's her own property. First wife has no right in this property. No consent of first wife or her children is needed.
5. First wife's son cannot claim. He can only claim when his father dies. He can claim as a legal heir. But if the father sells the property to someone, say you, then offcourse the son cannot claim any right in the property from you.
6. You can go ahead with the deal. Only condition - ask the person to bear the deficit stamp duty plus penalty on the gift deed. Even if that does not become public, chances cannot be ruled out that it would become public in future. If that happens the gift deed can be impounded by amy government officer and sent to the collector for calculating the stamp duty on gift deed between strangers and penalty on deficit stamp duty. That will come on you. So it's advisable to take separate consideration from the seller alongwith an indemnity bond from him.
Hi
1) Property laws are different from marriage laws.
2) Though the second marriage of hindu male is void during subsistence of his first marriage(by virtue of marriage laws), the property held by the second wife will continue to be her absolute property vide Section 14 in The Hindu Succession Act, 1956(which is a succession / property law).
3) Section 14 of Hindu succession act reads as follows:
a) Any property possessed by a female Hindu, whether acquired before or after the commencement of this Act, shall be held by her as full owner thereof and not as a limited owner.
4) So there is no concept of jointly owned/ ancestral/ Co-parcenary (HUF) property, if the property is in the name of a Hindu Woman.
5) Please note that the wordings of Hindu succession act say any property possessed by a female hindu and that it does not mention whether she is unmarried/ married or whether her marriage is void marriage OR legal marriage. SO In accordance to law, the property owned by Second wife will be her absolute property only.
6) In your case, the second wife has purchased the property from a third party and by default it will be her absolute property and she has full rights, title , ownership and interest on the property and as such no person including her own children can have any claim on the said property.
7) The children from First wife cannot claim any ownership/title on the property of the 2nd wife of their father by virtue of the fact that 2nd marriage itself was null and void.
8) There is no requirement for consent from the following by the second wife to execute any transaction (gift/sale/will)
a) either the husband or
b) the children begotten through the second marriage or
c) children begotten between the husband and his first wife
9) First wife children can have no claim, title,ownership or interest on the property owned by the second wife by virtue of operation of Section 14 of Hindu succession act.
10) In accordance to law, irrespective of whether a female hindu has any source of income or nil source of income, whatsoever property is owned by her will be her absolute property and she can do whatsoever with the said property (GIFT/SELL/WILL) and no person can have any claim whatsoever.
Hope this information is useful.
Correcting an error in my reply
In presence of first wife, the gift transaction between second wife and husband will be taken as a gift between strangers and not a sale deed
As said, stamp duty on gift deed between relatives like husband and wife is lesser compared to stamp duty on gift deed between strangers
So if the gift deed between second wife and seller is taken as a gift deed between strangers, then the deficit stamp duty may become payable alongwith penalty
Apologies for the inadvertent error
Thank you all for every answer. it was insightful. I think i have almost made my decision to go ahead with the deal. Question: Is it possible and is it a good idea to ask the seller to revoke/cancel the gift deed and make a sale from the second wife directly? This will remove all that confusion surrounding gift deed and any foreseeable penalty. In any case if i have to go ahead with the deal I have below queries... 1. is a Sale Agreement must for every sale ? Or is it okay to directly go ahead with the sale deed? 2. If its a must then is there a minimum limit as % of consideration value? (Like min 10% or 25%) 3. If the owner has made any sale agreement with some other party (on a stamp paper but not registered). and if he has received any payments against that, will I be liable in anyway to those agreements and conditions post sale. Can that other party claim anything in anyway from me or on the property? This is assuming I have followed all required minimum legal procedures like news paper notice, and the sale deed has a clear clause where seller declares that there are no encumbrances of any type on the property. The reason for these questions is that the owner is demanding almost 50% as agreement amount which i am not comfortable with and I am thinking to offer him to settle at once during sale deed registration. In that case i dont think he will agree for any formal sale agreement documented. And I also have a feeling that he might already have a sale agreement executed as a security against a hand loan he borrowed from a local financier some time back. Thank you
See though there is no confusion but still if you doubt regarding gift deed you can ask for revocation deed by consent and then directly purchase from wife.
1. You can directly make a sale deed it's not compulsary to make sale agreement. Sale agreement is made for future dealings when sale deed is made in future.
2.No it is not mandatory further it's is a contract between two parties they can agree on any value.
3.See if you have taken all reasonable steps then you won't be liable seller will be liable to pay damages to the third party further you can check in detail because this can lead to litigation and can effect your property also for time being so take all precautionary measures.
The third party cannot claim anything from you.
See 50 percent amount.on agreement is too much if you are paying that kind of amount it is advisable to register a sale deed directly.
You can take that in writing and make an indemnity clause further you can enquire if there is any registered agreement on that property.
1. The second marriage until it is not complained about by anyone cannot be termed as an offence, however the same is null and void in terms of law, whereas this proposition of law cannot disentitle her husband from receiving the gift of property from the donor as a donee.
This cannot be termed as illegal or invalid transaction.
2. No, this property becomes his own and absolute property, hence nobody has any rights in it.
3. No, not necessary.
4. No.
Question: Is it possible and is it a good idea to ask the seller to revoke/cancel the gift deed and make a sale from the second wife directly? This will remove all that confusion surrounding gift deed and any foreseeable penalty.
The donor cannot revoke the registered gift deed, once it is made.
1. is a Sale Agreement must for every sale ? Or is it okay to directly go ahead with the sale deed?
It is not mandatory to have a sale agreement prior to the rgistered sale deed.
2. If its a must then is there a minimum limit as % of consideration value? (Like min 10% or 25%)
It is not mandatory.
3. If the owner has made any sale agreement with some other party (on a stamp paper but not registered). and if he has received any payments against that, will I be liable in anyway to those agreements and conditions post sale. Can that other party claim anything in anyway from me or on the property? This is assuming I have followed all required minimum legal procedures like news paper notice, and the sale deed has a clear clause where seller declares that there are no encumbrances of any type on the property.
If have strained to take all sorts of precautions before purchasing the property, what prevents you from obtaining a proper legal opinion also from a legal advisor or a local lawyer?
First get a legal opinion about the properties to be purchased, you may proceed with the sale deed execution after that.
1) If the husband is alive than need not to worry you can directly make sale agreement and proceed further.
2) As you have taken all precautions regarding notice in news paper etc than need not to worry if you have not received any feedback or query regarding purchase of property than you can purchase property.
3) Gift deed can be revoked back only by donee means by husband, check wether husband is ready to revoke the gift deed.
1) gift deed can be cancelled with mutual consent
2) sale deed can be then e exulted by second wife
3) you can go ahead directly with sale deed
4) if seller has entered into sale agreement with third party and received consideration then third party will file suit and seek court orders to set aside sale executed in your favour
Dear Sir,
My answers are as follows:
Q1. Owner is Hindu, so the second marriage is illegal, is the gift deed also illegal? in this case what option do we have?
Ans: Gift Deed cannot be deemed invalid unless it is declared by Court of Law. To declare it as void document you must file a suit for declaration. If such property is self acquired property of the donor then it can be cancelled. If it is ancestral property then gift deed will be cancelled.
Q2. Does any of the first wife's children have any sort of rights on this property,?
Ans: The rights of first wife come into existence only when such property is ancestral property. The definition of ancestral property is given at the end.
Q3. In any case is it a must required to take the first wife or children consent?
Ans: It is better to take the consent of first wife and her children.
Q4. Assuming answers to my first 3 question are in favor of buying, then is there any case for first wife's son to claim rights on property post sale?
Ans: There are chances of litigation by the children of first wife.
Question: Is it possible and is it a good idea to ask the seller to revoke/cancel the gift deed and make a sale from the second wife directly? This will remove all that confusion surrounding gift deed and any foreseeable penalty.
Ans: It is better to ask the donor to cancel the gift deed and directly sell the property by executing sale deed in favour of purchaser.
1. is a Sale Agreement must for every sale ? Or is it okay to directly go ahead with the sale deed?
Ans: Having sale agreement is more secured than going for sale deed directly.
2. If its a must then is there a minimum limit as % of consideration value? (Like min 10% or 25%)
Ans: It is better to pay only 10% as advance out of total sale consideration.
3. If the owner has made any sale agreement with some other party (on a stamp paper but not registered). and if he has received any payments against that, will I be liable in anyway to those agreements and conditions post sale.
Ans: Earlier sale agreement can be cancelled and his signature to be taken as consenting witness.
4. Can that other party claim anything in anyway from me or on the property? This is assuming I have followed all required minimum legal procedures like news paper notice, and the sale deed has a clear clause where seller declares that there are no encumbrances of any type on the property.
Ans: If it is regarding earlier agreement holder then he will go to civil Court and file a suit for specific performance and if sale deed is registered in your favour, in the meanwhile, then he may ask for cancellation of the same. So it is better to get his signature on sale deed as consenting party.
The reason for these questions is that the owner is demanding almost 50% as agreement amount which i am not comfortable with and I am thinking to offer him to settle at once during sale deed registration. In that case i dont think he will agree for any formal sale agreement documented.
Ans: If you pay 50% of agreement amount during the subsistence of earlier agreement then your amount will be under danger.
And I also have a feeling that he might already have a sale agreement executed as a security against a hand loan he borrowed from a local financier some time back.
Ans: Any earlier sale agreement will invite litigation in Civil Court inspite of paper publication.
Once gift deed is made,it can't be cancelled. He is lawful owner of the property. So, you may purchase it.
Q1. Owner is Hindu, so the second marriage is illegal, is the gift deed also illegal? in this case what option do we have?
Answer: Even if the marriage is illegal, the supreme court has held that the legal heirs are entitled to the property as well the children born out of such a marriage. in a very recent judgment by Supreme Court, Revanasiddappa v. Mallikarjun, it was held that ‘Child born in illegitimate relationship/Void marriage is innocent and is entitled to all rights to property to which his parents are entitled whether ancestral or self-acquired property;
Q2. Does any of the first wife's children have any sort of rights on this property,?
Answer: Yes they very much have a claim on the property;
Q3. In any case is it a must required to take the first wife or children consent?
Answer: You will be required to take NOC from all the legal heirs of the first wife and second wife and any other person who has claim over the property. You will also need to issue a advertisement inviting claims to the property in two/three newspapers one of which will be a local paper;
Q4. Assuming answers to my first 3 question are in favor of buying, then is there any case for first wife's son to claim rights on property post sale?
Answer: Once you obtain NOC then nobody can claim the property;
Your question:1. is a Sale Agreement must for every sale ? Or is it okay to directly go ahead with the sale deed?
Answer: Yes sale agreement is must. Pay the stamp duty and the registration charges then only shall you obtain a perfect title;
2. If its a must then is there a minimum limit as % of consideration value? (Like min 10% or 25%)
Answer: The minimum value can be given to around 10% as token money.
3. If the owner has made any sale agreement with some other party (on a stamp paper but not registered). and if he has received any payments against that, will I be liable in anyway to those agreements and conditions post sale. Can that other party claim anything in anyway from me or on the property?
Answer: Make a clause in your sale deed stating that, the seller promises that she has not created third party interests and if yes then she is solely liable to reimburse the third party for his losses;
This is my response to you:
1. Collect all the necessary documents;
2. Engage a lawyer, let him/her verify the title of the property and let him/her draft the agreement for you;
3. After all the confusion is cleared, then only go ahead with the sale.