• Property Tax

Hi,

I have purchased a property in Prestige . This was an assignment agreement , mean the first owner bought it from Prestige and sold it to me before registration . assignment was done Dec 2018 and Registration was complete Mar2019 . While Paying Proprty tax for the current year I realized that property tax from last 3 years have not been paid . Do I need to pay the Property tax for the years I did not own prior to assignment including 2% penalty charges. The Property is Bangalore.
Asked 6 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

15 Answers

Previous owner is liable to pay all dues in respect to the property upto to the date of sale.

inform him accordingly. If he does not pay you need to file a suit for recovery of money against the seller.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

You are not liable to pay property tax prior to registration of flat in your name 

 

it is builder responsibility to do so 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Being the owner of the flat, you have to bear the property tax but only from the date on which you gained possession of the property. And if you got possession of the flat in 2019, then you have to pay only for that part of the year from when you got possession of the property on a pro rata basis.

But if you agreed to pay for the property tax of the earlier period also in the agreement to sale then you will have to pay for that period also.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

You are liable to pay the property tax from the execution of sale deed. 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

See you can pay same now and further can file a recovery suit to recover from the previous owner the due property tax amount.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

since you are the current owner of the property, you become liable to pay its property tax alongwith any arrears

the local body is not concerned who is liable for paying the tax, whether the previous owner or you

if there is any arrears, then the owner has to clear that liability at the earliest or else the local body can auction the property to recover the arrears with penalty

your remedy is to file a case against your predecessors, ie from whom you purchased this property under the assignment agreement, for recovering the share of the property tax which they were liable to pay when they were owners 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1.  YES.  As per the laws of the Civic body, the latest property owner/occupier on record is liable to pay property tax upto date, for all the prior periods.

2. Typically the above can be avoided when scrutinizing the property documents and other liabilities /debts /loans etc.... that are linked to the property.  This is usually done by a Property Lawyer.

3.  However, IF the agreement has clauses that the previous owner would pay all liabilities /debts upto date of sale, THEN claims against the previous owner can be filed (provided the amount is significant).

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

The property tax is to be paid or not and whether it is pending or paid should have been the subject matter of the agreement. It was not and therefore you should approach the previous owner and talk to hima about the pending bills. If he is reluctant then file a case.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

In my opinion, you have to pay the property tax. However, if there is a clause in the Assignment Agreement to the effect that the property tax before registration is to be borne by assignor, you can claim the same from him.

Dalip Singh
Advocate, New Delhi
1096 Answers
36 Consultations

As per records , you are only the first owner. Well, it must be in sale deed that for any previous dues, seller will be liable. Ask him to clear.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

Depends upon the sale deed, whether it stated that seller will clear property dues or purchaser will clear the dues.

However , as per the fact it has been registered, you may not be able to enforce the same if the seller was bound to clear the same.

Therefore, I suggest you to clear the property dues yourself.

Deepankar Kataria
Advocate, Delhi
194 Answers

Yes as the property has already been transferred in your name so the payment of tax liability lies with you and you have to pay the property tax for the remaining period which is unpaid otherwise in case the property has been transferred in the seller's name then bill before the registration of the property you would have asked him to pay the taxes for the property

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

Yes you have to.

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1590 Answers
5 Consultations

If the property was not registered on the previous owner then he cannot be held liable for the property tax.

The builder which was possessing the property has the liability to pay the tax.

I dont think prestige will pay the tax, hence you may be pressurised by the authorities to pay the arrears of taxes that are due to be paid.

 

However you can ask the seller to pay the tax, let him give the reason for refusing to pay the same.

After that you can approach builder for this, if he refuses then you pay it and issue a legal demand notice from the builder on this and then file a recovery suit against the builder on this.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You dont need to pay the past taxes pending by previous owner.

For that you can send him a legal notice for demand of previous dues of property tax as it was mentioned in Agreement as indemnity clause.

If he fails to pay all the previous dues then you can file suit against him for recovery of pending dues. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer