Buying flat from land owner share
Dear Sir, I am planning to buy a flat from land owner share. This apartment had 60% developer share and 40% land owner's share. There are 4 land owners. Two are mother and wife of person I am dealing and other 2 are different, staying in different city.
There is sharing agreement that talk about number of flats owned by land owner and number of flats owned by builder. But separate flat number distribution to these 4 land owners are not mentioned.
There is one memorandum of Agreement which talks about the flat numbers for each land owners. So if I go for agreement, seems to me, this MoA will not work. So my local lawyer asked me to get the PoA from other two land owners(who are in different city) and that has to be registered.
Now problem is - other two land owners from different city cannot come for signing during agreemnt and resgistration. and this PoA would be around 2% stamp duty that would cost around 7-8 lacs. I wanted to know if there is some other alternative or cheaper way so that I can buy this flat. My one land owners(wife and mother) will be here and can sign. Other two land owners can come only for PoA but amount is high.
I need to know if they make - again a new sharing agreement with flat number distribution, and register it, will it again need 2% stamp duty and will that document is helpful ?
Can MoA is also valid because as per local laywer, there should be PoA given by other two land owners from different city to these two wife and mother ?
What kind of problem can occur if I buy a flat based on MoA ?
I know one way, that other two land owners from different city can come and sign but coming everything is not possible for them for all flats.
Please advice. I really need your help or guide me on this..
Asked 1 year ago in Property Law from Bangalore, Karnataka
1.. you have stated "There is one memorandum of Agreement which talks about the flat numbers for each land owners.",
2. This agreement wherein the individaul flat nos have been agreed upon shall have to be registered,
3. The above registered agreement is enough for you to get the sale deed registered by the particular owner in whose name the said flat has been entitled to as per the said Agreement by and between the owners,
4.Let the other owners who are present be the witness in the said Sale Deed.
1) is the development agreement between builder and land owner duly stamped and registered?
2) if there are 4 land owners and all four cannot attend sub registrar office then in that case they can execute POA in favour of other land owners .
3) POA to sign sale deed and for registration does not attract 8 lakhs stamp duty . it attracts nominal stamp duty
4)as on date there are no buyers in real estate market .if land owners want to sell flat they would come down for signing sale deed and for registration purposes
5) as far as stamp duty on sharing agreement is concerned only local lawyer can guide you . stamp duty is state subject and varies from sate to state .
6) you should act as per your local lawyer advice .
Hi, don't go for buying apartment because land owner share is 40% so all the land owners are come and join for execution of sale deed.
2.Tomorrow they may come and says that they are not executed sale deed so transaction is bad in law.
3. If they give power of attorney then only you can go ahead with the transaction.
3. There is no short cut method it is your life time investment.
Hi, Thanks for your reply.
This is for Karnataka State at Bangalore city..
1.Sorry for one confusion. There is no MoA, but it is MoU (Memorandum of Understanding). This is on 2 Rs Stamp Paper (titled as Registration and Stamp Department). MoU is signed by all four land owner's with distribution of flats between all the four land owners. Does MoU work and I can buy flat on this basis ?
2. If we register this MoU in registar office, will that server the purpose. How much cost would be involved in this ? So after this, there is no need for PoA because all four land owner's signed in the Memorandum of Understanding document.
3) Is the development agreement between builder and land owner duly stamped and registered? -> Yes, JD is duly stamped and registered. Builder has already sold all his flats. All banks has approved this property (SBI, Axis,HDFC, LIC). Even my Land Owner( his wife and mother) sold one flat and his loan is approved.
4) As per my local lawyer, MoU cannot be worked because it is not registered in registrar office but as per Land Owner,s Lawyer, it is ok and there is no need for PoA. But my lawyer says, PoA is required. So for PoA, its 2% stamp duty on the guidance value which I calculated , comes around 7 lac rupees.
So any idea how much cost it would be for Bangalore Karanata State ? As you said, it should be nominal value.. if they register it for PoA.
5. For other two land owners from different city, will Memorandum of Understanding work or not,, or we need PoA from them ?
6. Also I came to know, registration for these flats will start from next month for the few people who have bought the flats from Land Owner and Builder.. Please let me know, if I got for agreement after paying 20% and 80% amount on Load, Can this agreement and registration happen on one day so that if I need to call other two land owners from Mangalore, they can come and sign one time and all my work gets done... So in this case, there is no need for PoA if all land owners sign.
My Local land Owner has already shared with me Sharing Agreement which is on eStamp paper with 550Rs Stamp duty..but this doe not talk about individual distribution of flats for all land owners, it just says flat numbers for Builder and for all four land owners.. I can send those document to you on email, if you can check and help so I can ask Land Owner for PoA requirement..
Please advice because my local lawyer gives me different opinion and my land owner lawyer give me different opinion.
Asked 1 year ago
1) MOU is understamped and not registered . it is in admissible in evidence .
2) the reason why registration is necessary as it provides for division of share among 4 co owners
3) hence you cannot buy flat on basis of MOU
4) you have not mentioned when MOU was executed
5) registration can be done within period of maximum 8 months from execution of document
6)if development agreement is duly stamped and regsitered builder has power to develop the land . the fact that banks are sanctioning loan for project shows that title of builder is clear and marketable
7)POA stamp duty only local lawyer familiar with provisions of karnataka stamp act can guide you
8)the land owners may not agree for payment of stamp duty on MOU as it would attract substantial stamp duty
9) ask the land owner to come for registration purposes or pay the stamp duty and registration charges if they want to sell the land
10)stamping and registration of agreement can happen in one day .builders have good contacts and they can do the needful
11)you should go by your local lawyer advice as he has adviced you on perusal of all the documents .
1. Properly drafted MOU is nothing but an Agreement,
2. The said MOU shall have to be registered,
3. For registering the said MOU. all the signatories shall have to appear before the Registrar and apend their signatures on their photographs,
4. In any case all the land owners shall have to be present before the Registrar,
5. The registration fee will be very minimal.
Mr. Rajneesh Kumar Mangalore is not far away from Bangalore it is better you have to execute sale deed from the all the land owner for safer side and there presence before the Sub- Register only one day is enough.