Stamp duty and registration
Allotment letter was issued to party A in 1991 by the builder. Party A sold the allotment rights to Party B
in 1992 and it was confirmed by the builder.
Party B sold the allotment rights to Party C in 1993 which was again confirmed by the builder.
All the above transactions were not registered and no stamp duty was paid.
In 1996, on completion of the building, the builder made agreement with Party C and Party C made a short payment of stamp duty for this sale agreement. However, this agreement was not registered.
Now in 2018, Party C has paid the differential stamp duty along with 400% penalty and got letter of adjudication.
Party C is now wanting to sell the property to a prospective buyer and the buyer wants confirmation that the earlier transfer of allotment letter would attract stamp duty, if yes, then to what extent would be the penalty? Also, all the above transactions have not been registered till date.
Kindly suggest if a prospective buyer can buy the above property by paying stamp duty and registration charges applicable towards this transaction and the past unregistered agreements would not impact the buyers ownership once he concludes the deal by paying stamp duty and registration for his transaction and if the seller is willing to give an indemnity towards any past dues. Will the indemnity suffice and legally will the prospective buyer covered for full rights on the said property without any past liabilities?
Asked 4 years ago in Property Law
What will be the impact if Party C hasn't declared the past allotment letters at the time of adjudication?
Also, only adjudication has been done by Party C and no registration is done, what will be the impact of this non registration on the prospective buyer?
Also, just for clarification, allotment letter doesn't attract stamp duty?
Asked 4 years ago