• Part sale of property

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.
Asked 5 years ago in Property Law
Religion: Hindu

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26 Answers

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 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

 

do not rent out the property without consent of other co owners 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

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.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

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

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

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.

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

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.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Yes you can rent the remaining property to him vide rent agreement there is no illegality in same.that is legal.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

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

Yusuf Rampurawala
Advocate, Mumbai
7483 Answers
79 Consultations

5.0 on 5.0

Hello,

Yes you can sale the property partly bit cannot rent out the same property after the sale .

Regards

Swarupananda Neogi
Advocate, Kolkata
2963 Answers
6 Consultations

4.7 on 5.0

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. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

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.

G Suresh
Advocate, Chennai
394 Answers
5 Consultations

4.9 on 5.0

sale of property would attract long term capital gains if held for more than 2 years 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Each co-owner is liable to pay tax on the capital gains arising from the sale of the property. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

If the partition of the property has been done then this can be done 

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

Yes you can rent the rest of the property to the same buyer 

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

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.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Tax will be applicable on sale deed consideration approximately 6%.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

selling part, Capital Gain tax to be paid. on receiving rent also will have its own Tax on share holders as per ratio.

G Suresh
Advocate, Chennai
394 Answers
5 Consultations

4.9 on 5.0

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.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

The tax implications have to be ascertained that whether it attracts long term capital gains etc.

You may discuss with your auditor about it.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

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.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

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. 

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Yes you can do the same. Rent income will be taxable

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

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