• Ratification of the property transactions by a major turned minor

Hi,

Good Evening,

I have few follow up questions regarding my previous question at this link 
https://www.kaanoon.com/23998/property-purchase-agreement-of-sale  (just in case link does not open, following is the background)

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Recently I have performed a Agreement of Sale for a property.I made Agreement of Sale for an amount of 33% of the market value of the property.

I have applied for bank loan for the rest of the amount, while the bank loan is approved based on my income and techincal aspects of the property, its stuck in legal clearance.

Bank has an argument that during 2004, property was transferred to a minor by his father as Gift Deed (minor was 10 years old in 2004) and the father himself received this property via Gift Deed by his mother (grandmother of the minor).

Later due to some reasons, the mother cancelled the gift deed in the subregistrar office and the father has cancelled the gift deed on his son's name (minor's gift, minor was 11 years old in 2005).
Now that minor child is a major for 3 years. 

After that the lady has sold to some third party and subsequently there were 3 transactions.


----------------------Previous Post  End-------------------------------------------------

The bank is saying, loan can be sanctioned if I get the ratification done on the property by the minor child whose age is now 21 years.

Following are the questions.

1) The child age is now 21 years, can he be considered as a major ? During the gift deed on his name his mother was  appointed as the natural guardian (mentioned in Gift Deed), there are no court orders for the said guardian appointment.  Can the child be considered as a Major and will his ratification be valid?

2) Gift Deed and the Cancel Deed are done in sub registrar office (SRO) A, now I am planning to do the ratification in SRO-B, can this be valid or the ratification has to be done only in the SRO where the original or principal deed were executed?

3) The "Agreement of Sale" was done for 33% of the property market value on a Rs 100 non-judicial bond paper, if I want to put a legal case(if i want to cancel the transaction and get back my money) do I need to register this "Agreement of Sale" in the SRO office? Without registration can it be legally valid and can I file the case?

Your answers are highly appreciated.

Thanks,
Sai
Asked 1 year ago in Property Law from Singapore
Religion: Hindu
1) at age of 21 child is regarded as an adult 

2) ratification by son  would be valid 

3) ratification deed has to be executed within jurisdiction of sub registrar office where property is situated 

4) it is not necessary to register agreement for sale . . 

5) sale deed has to be registered . 

6) if you wan to cancel the agreement do it with consent of seller and take the refund as per terms of your agreement for sale 
7) consult a local lawyer 
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
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1. The cancellation by mother of the gift deed she made in favour of her son is illegal. Only a court of law could have cancelled it. A gift deed cannot be unilaterally cancelled after it is complete. However, the cancellation by the mother would hold good until and unless the court declared the cancellation by her as illegal. So the argument of bank holds good.

2. The minor and his father can challenge the cancellation by the grandmother of the minor and the subsequent transactions in the court which can quash them as illegal.

3. The minor who has attained majority now can challenge the cancellation in the court. He can ratify the sale by executing a settlement deed.

4. Ratification should be done only where the original deed was executed and nowhere else.

5. The agreement should be registered to sustain a claim for recovery of money in the court.
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
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Hello,
1) In fact if a gift was made in the name of the minor, on his attaining majority by default the property will come in his ownership. I don't see the need for a ratification deed to be registered.

2) Cancelation of gift deed can be done only if the donor and the donee consent about the same to be canceled In your case the guardian should have consented and signed on behalf of the minor. Find out if these things have occurred. Of a Ratification deed has to be registered it has to be in the same SRO.

3) AN AGREEMENT TO SELL on a non judicial stamp paper has no legal validity if you want to initiate any legal action . The deed has to be duly stamped and registered for it to be valid legally. It is the liability of the seller to clear the title and make it marketable for you.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
1) The child age is now 21 years, can he be considered as a major ? During the gift deed on his name his mother was  appointed as the natural guardian (mentioned in Gift Deed), there are no court orders for the said guardian appointment.  Can the child be considered as a Major and will his ratification be valid?

A child on completion of 18 years, attains majority, hence 21 years old is no more a child, but an adult as per law.  Hence any ratification can be done only by the concerned person and not anymore by the so called guardian.




2) Gift Deed and the Cancel Deed are done in sub registrar office (SRO) A, now I am planning to do the ratification in SRO-B, can this be valid or the ratification has to be done only in the SRO where the original or principal deed were executed?

The ratification deed can be registered where the property situates.




3) The "Agreement of Sale" was done for 33% of the property market value on a Rs 100 non-judicial bond paper, if I want to put a legal case(if i want to cancel the transaction and get back my money) do I need to register this "Agreement of Sale" in the SRO office? Without registration can it be legally valid and can I file the case?

The sale agreement on non judicial stamp paper has no legal validity without it being registered.  However, if you want  to cancel the agreement, you can inform the vendor by a notice that you would like to cancel the sale agreement due to the legal tangles involved in it. If he refuses to return the amount, this agreement can be used as a receipt for the amount given and can file a money recovery suit. Do not go for registration of the same now because you do not want to enforce the sale agreement anymore. 



T Kalaiselvan
Advocate, Vellore
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