There is a partnership firm who is selling the land however land ownership is on the individual name who is a partner in the firm. 1) Land is not mentioned in the registered partnership agreement. 2) There is a non registered declaration by the partner that land can be used by partnership firm. 3) Partner is ready to sign a consenting witness for sales agreement where it will be stated that land can be used by firm. Can i buy the land if yes what are the documents i should be asking
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Dear Client,
Sale will execute with the owner, an individual, firm has no claim.
Permitting to use the land by firm, gives no title and right and can be refuse by mere WILL,
can buy from owner not firm . delivery of Complete chain of original documents since it`s origin.
3rd point ? --- land can be used by firm ? ?//
Yogendra ji this is what stated by partner in declaration and also same is promised in sale agreements with consenting witness of partner " I do not and shall not have any manner of right or claim whatsoever in or upon the same except as a partner of the said firm"
Than it should, land is in exclusive possession/ownership of the seller and firm was permitted to use land for no gain and same is dissolved through this sale deed in fover of purchaser.
Dear client,
If land is not in the name of firm, you can purchase it as it belongs to a particular person.
for a property to become the property of a firm it must have been brought into the stock of the firm by the partners originally when the firm was formed or subsequently acquired by purchase or otherwise in the course of the business of the firm.
2) it would become property of the partnership only if there is an agreement, express or implied, that the property under the agreement of partnership to be treated as the property of the partnership.
3) in present case declaration has been executed by partner that firm can use said land belonging to him
4) Property of a partner, does not become partnership property merely on his permitting it to be used in partnership business.[
5) it is necessary to peruse declaration executed by partner to advise further
Contact a local lawyer . Necessary to peruse declaration executed by partner to advice further
If all the partners are consenting the same with Registered documents then you can buy the same unless it is risky
The principle is that you can transfer only what you have. As the firm have no authority and land is not transferred to firm the whole sale agreement in void ab initio and as per law have nothing to enforce.
The agreement should be made with the title holder of the land and he has to register the land in the favour of buyer.
Since the registered title document is in the name of an individual, only he can execute a registered sale deed and not the firm.
The property has not been transferred legally to the partnership firm hence the firm cannot sell the property legally.
As far as other documents are concerned, you may be in touch with a local advocate who will inform you about all further requirements in this regard
1. In the existing case, Partnership Firm does not have any right to affix signature on any Sale Deed, irrespective of the fact that Individual Land-Owner is a partner in the firm. Land Usage arrangement is between the Firm and the Land-Owner, which will lapse, by legal default, on executing a Sale Deed.
2. Proper Sale Deed between Land-Owner and Land-Purchaser should be executed (Stamp duty paid and Registered) with strategic clauses and Land-Owners undertaking to indemnify the Land-Purchaser of any liability /litigation created by the Partnership Firm.
Keep Smiling .... Hemant Agarwal
