• 30 years late registration of my apartment

I bought an apartment with full payment with sale agreement 30 years ago in Hyderabad. I have been paying property tax in my name all these 30 years. I had lived in it for 2 decades and then rented it. 9 out of the 10 buyers have registered their apartments long ago with the builder signing as the seller and without the signature of the common GPA holder of 15 different land owners . Can i register it now on the consideration mentioned in the sale agreement and not on the current market value? Is there a way to sell it now avoiding payment of double registration charges? The builder is demanding lakhs of rupees towards the capital gains tax said to be paid by him for signing. Is his demand genuine?
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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10 Answers

You don’t have clear and marketable title to the property

2) registered sale deed confers title to property

3) you ha e to pay stamp duty on current market value of property as registration of sale deed is being done now

4) only after regd sale deed is executed can you sell the flat

Ajay Sethi
Advocate, Mumbai
87975 Answers
6207 Consultations

5.0 on 5.0

What is the agreement between you and the Builder ?

What are the terms and conditions that you have accepted with him ?

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

No, you have to pay the current circle rate stamp duty for registration of the flat. The capital gain tax will involve due to sale of property.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Firslty, the demand of the builder is not justified at all.

Secondly, it’s been 30 years that no one has come and disputed your possession which gives you title right automatically over it.

Thirdly, now you please don’t do its registers. Just transfer the same first your wife as a gift deed or to some one close to you then that person may sell the same to the buyer in the near future.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Hello,

No registration can not be done on the basis of the past sale agreement.

His demand is partially genuine, you may pass the property to third party who may get a direct registration on his name.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. The stamp duty will have to be paid on the current circle rate and not the rate prevalent 30 years back.

2. The builder will demand his pound of flesh for sure as he will have to bear tax but negotiate and bring him down.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

Sir the title of property is not clear, there will be difficulty in selling the apartment further you cannot register it on old market rates at present rates will apply.

You have negotiate with the builder the orignal owner to sign the sale deed and pay stamp duty. The demand is not genuine as the consideration was already paid but for registration you have to negotiate with him.

Further if you directly transfer to.sombody else as gift /sale in that condition also.title is not.clear as chain document is missing

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

You are bound to register the apartment on the current guideline value and not the value that existed 30 years back. Even according to you the property has appreciated in value and hence payment of taxes on the appreciated value is inevitable.

Had you registered the apartment 30 years back, then the builder would have had to pay capital gains tax prevailing at the point of time, hence if it is registered now, then the long term capital gains would be phenomenal and hence the builder demand is genuine.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

This is my response to you:

1. Capital gains tax need not be paid if the property is sold within the first 3 years of the purchase;

2. But in your case the capital gains tax will have to be paid;

3. Also the agreement should be registered within 4 months otherwise you will need to execute a deed of confirmation as well;

4. It is also the builder's mistake that he should have signed and registered the same;

5. You can sell the apartment only after the property is registered in your name;

6. You can also do this, tell the builder to sell the property directly to the buyer by executing a tri-party agreement;

7. This would save the builder from paying capital gains tax and the buyer gets a perfect title to the property.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

The registration of sale deed can be done at the rate agreed in the sale agreement provided the sale agreement is a rgistered document.

If the full sale consideration amount has been paid at the time of buying the property what prevented you from getting a registered sale deed executed in your favor instead of the sale agreement.

You may issue a notice to the builder/seller to execute a registered sale deed in your favor on the basis of the sale agreement, mentioning that since the full sale consideration amount has been settled at the time of entering into the sale agreement, time not an essence of contract, he is instructed to execute registered sale deed in your favor, failing which you can approach court with a suit for specific performance of contract against him.

Dont give any money as demanded, becasue he need not pay any capital gains tax at this stage since he has received the entire sale amount long back, moreover you are going to pay the stamp duty as per the agreed sale value prevalent at that time and not at the present market value.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

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