• Can I sell pagadi property even if my landlord disagree?

I want to sell my property to a client and gv the landlord 30 percent... but landlord is refusing bcoz he "is not happy with the client I m selling to"..pls help bcoz that property is useless and eating up my profits from other business.how can I deal with such adamant landlord
Asked 6 years ago in Property Law
Religion: Hindu

7 answers received in 1 day.

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11 Answers

1. See since the property is on tenancy you cannot make further agreement of same for transfer of tenancy to third party without permission of landlord as landlord shall issue rent receipt of same.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

The pagdi property can not be sold without

the consent of the landlord.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

No pagdi property can't be sold it can only be assigned to any other person. Even if you sell the land lord will not make the said buyer the tenant

Prashant Nayak
Advocate, Mumbai
34522 Answers
249 Consultations

You need landlord consent to sell the pagdi property 

 

you can in alternative surrender the property to landlord and take 70 per cent of market price 

Ajay Sethi
Advocate, Mumbai
99786 Answers
8145 Consultations

You can sell but your buyer will not get a title

You can sell the property under an agreement with the client and give him a power of attorney to do various things on your behalf till the property is transferred to his name

But if the landlord learns that you have sold without consent then landlord can terminate tenancy and file suit against you and your buyer for subletting

In such a suit, since you will have already transferred the property to your buyer, it is only him who has to contest the claim of the landlord

Landlord can also file a regular civil suit against your buyer since he is not recognised as a tenant and will be considered a trespasser 

 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1) Ask landlord to give your cost price and he can take full ownership.

 

2) Or arrange another buyer for you otherwise he can sign for your this deal as there is no such clauses in the pagdi system to owner have specific buyer.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Hi, 

You may sell the property but try to keep all the things in mind before taking any action. If the landlord is not happy with that person, tell him to find another person who would take the property in same cost as agreed by that person. In all the cases, only law may not help. You may have to consider the social set up and other things also.  

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

No you cannot sell the pagadi property without the consent of the landlord as pagadi is not a legally approved method of acquiring a property on rent. 

If your land lord does not like the new tenant then offer him to get a new tenant for your property and take your share of 70% or if you feel satisfy them offer him more i. e.  40% of share. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

The landlord only has to give NOC as well as to transfer the tenancy rights to the new tenant, hence you may have to somehow manage the landlord on this because legally you cannot do anything against the landlord on this otherwise he may not transfer the tenancy rights on the new tenant.

T Kalaiselvan
Advocate, Vellore
89988 Answers
2493 Consultations

Dear Sir,

Pagdi system is alike any other renting system that is prevalent across the world. ... This tenant continues to pay rent to the owner as long as he is not sub-renting the premises. Additionally, the tenant has the option to sell the said property while giving a percentage of the gross amount to the owner.

You should contact to some local lawyer as there are different rules and regulations to sell property in different states.


Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

Pagdi system is alike any other renting system that is prevalent across the world. This “pagdi-kirayadar” system was launched before independence in order to avoid paying excessive taxes to the British. Under this system, verbal agreements played a major role in property transfers where in the tenants were given a slip of rent payment and further tenants made payments in full to the landlord.

Simply put, the system akin to any other renting system that is prevalent across the world i.e. landlord and a tenant. In this system the only deviating factor is that the tenant becomes a part owner of the house and not of the land. This tenant continues to pay rent to the owner as long as he is not sub-renting the premises. Additionally, the tenant has the option to sell the said property while giving a percentage of the gross amount to the owner. This percentage varies from anywhere between 30-50%.

In case of sub renting, the old tenant (now a landlord) and the owner of the property shall share the rental amount between them, typically at 35:65 ratio. This gives provision for the owner to make some money off his asset while avoiding taxes. The old tenant benefited, the new tenant rented a premises with low rent.

To understand the system better, we provide you with an example: In Pagdi system, if an existing tenant wants to sell his home for Rs 10 lakh, he is compelled to pay anywhere between 3 to 5 lakh to the owner. Furthermore, the purchaser of the land is said to be a tenant. Needless to say, he enjoys limited rights because landlord collects minimal rent and provides the receipts accordingly.

 

Hope, I may have made it little understand to you.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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