Under section 44 of transfer of property act co owner can sell his share without consent of other legal heirs
2) purchaser can file suit for partition for division of property by metes and bounds
I have property with 5 co-owners. We want to sell part of the property (say 25%) to a buyer who is not the co-owner. Our intention Is to sell the remaining part in future to the same buyer. Is this possible in our law and what will be the implications. Thanks.
Can we rent out the same property to the buyer after selling the part of property?
Under section 44 of transfer of property act co owner can sell his share without consent of other legal heirs
2) purchaser can file suit for partition for division of property by metes and bounds
Yes, you can sell the part property and remaining property in the future. Currently you can rent you property to buyer as well which will remain in yoy possession after part sale.
One or more co-owners having a stake in this immovable property are free to sell/transfer their respective share in this particular property. This is very much permissible in terms of section 44 of the Transfer of Property Act.
Can we rent out the same property to the buyer after selling the part of property?
Ans- Yes, the remaining 75% of this property can be freely rented out to this very buyer.
Yes you can sell the 25 percent of the property to seller vide sale deed . All the co-workers can sign the sale.deed and can further demarcate.the share of purchaser in sale deed.
Yes you can rent the remaining property to him vide rent agreement there is no illegality in same.that is legal.
if the property is an ancestral HUF property then if one co-owner wishes to sell his share then he needs to take permission of other co-owners
if the property is not HUF then the co-owner can sell his share without consent of other co-owners
Hello,
Yes you can sale the property partly bit cannot rent out the same property after the sale .
Regards
1) with the consent of all co owners you can sell the said 25% property through sale deed.
2) you can also sell remaining property to same owner.
3) through rental agreement with the consent of all co owners you can rent out the property.
yes , you can sell part of property and make him as co-owners as well. you can rent it out the property to him and deduct 25% rent as his share.
Thank you for your answers. What will be the tax implications?
Sir capital gains shall be there on sale of the property for.calculation of same selling price , purchase and indexation has to be considered you CA will calculate.for.you.
selling part, Capital Gain tax to be paid. on receiving rent also will have its own Tax on share holders as per ratio.
You all can jointly sell the proposed portion of the property to the prospective buyer after that the remaining property may be partitioned among yourselves in an amicable partition process.
All the owners have to enter into the rental agreement or one can be authorised by others to do such tasks on behalf of others too.
There is no legal infirmity in it.
The tax implications have to be ascertained that whether it attracts long term capital gains etc.
You may discuss with your auditor about it.
There is nothing wrong in the deal you can sell the portion of the property to the prospective buyer and let out the remaining property to him you can enter into an agreement for the leasing the property which is unsold
Dear Sir,
Both are possible if the buyer is ready to purchase. Further the other co-owners must not raise objections for such sale. Under law always first sale by a co-owners must be offered to other co-owners which is called principle of preemption. In the similar manner you can rent out the portion of property.
If all the co-owners are in agreement to sell the property in part then they may execute a sale deed in favour of the buyer.
1. Non-partitioned (undivided) CANNOT be sold or leased, even by conditional clauses. It would give rise to future disputes, since land is not partitioned and boundary lines cannot be defined.
Keep Smiling .... Hemant Agarwal