1) if you dont execute sale deed buyers would file suit for specific performance against you
2) agreement executed by father are binding on legal heirs
3) better execute sale deed
Can I decline to be a Legal Heir for a non-self acquired property of father?
My father was into real estate and he worked for a company (relatives' company) where he took up the responsibility of agregation of land for a layout project on behalf of the company. My father and the company entered into an non-registered agreement in 2011 for the same without any explicit mention of consideration for his services. My father entered into around 3 sale agreements for different properties within the projected layout plan for which partial advances were made by him accordingly. These advances were paid by the company to my father by way of cash and some bank transfers to purchase those lands (lands are not self-acquired by my father). My father passed away in 2015 without a will. Now, the company is asking us i.e. legal heirs to complete the sale agreement transactions on his behalf. We as legal heirs do not want to be part of this and want to decline to be a legal heir for these non-self-acquired properties. What do we do legally to get out of this and how?
Asked 6 years ago in Property Law
Religion: Hindu
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9 Answers
1.It is not clear as to f the land is not sef acquired property of your father then what is the nature of the property.
2. Unless and until the property is ancestral , you can not refuse to sell the property.
3. If you do then the company has the option of filing a suit for specific performance of contract.
4. If you do not want to proceed with the sale then send it a legal notice of cancelling the sale agreement of 2011 and return its money with interest.
Don`t respond anything to company, since agreement is not registered, cannot be used in evidence and specif performance of agreement also barred by limitation.
Also this is service/work agreement not binding on legal heirs.
Thank you for your quick answers. To clarify further and queries, 1. the company is under loss and do no have the sufficient funds to complete the transactions to effect a sale deed. And my fathers' estate is zero without any property or funds left for us to pay and complete the transactions. The landowners are poor agriculturists and not in a position to refund the advances. Hence, the company is also asking us to cancel the sale agreements by way of waiving the advances. Is this legally valid? OR how to go further? 2. If we still complete the transactions somehow leading to a Sale deed in our names - we still have to transfer the sale deeds to the company as its not ours. "Transfer" would mean a sale with consideration, I guess. The company is in no position to pay any consideration again back to us for a sale transfer to them which they've already paid for. How do we transfer these lands again back to the company? And LTCG becomes effective by Income Tax on me - who should bear this? 3. The non-registered agreement between father and the company for land aggregation in 2011 also states a clause that my father is not responsible for any default of the company to provide funds for purchasing the said lands. In the case of default, the company will be solely responsible for the loss thereon. - Can we enforce this non-registered agreement in our favour to establish that these lands are part of the company and not owned by my father as an individual? 4. All sale agreements were done during 2011-2015, and now its passed the 3yrs limitation period. Can landowners still proceed to sell their lands to new people without cancelling the existing sale agreements based on the limitation period without returning the advances?
Asked 6 years ago
Deed of cancellation can be executed with mutual consent
2) if company is not position to pay you sale price then don’t execute transfer in name of company
3) only after agreement is cancelled can sellers sell land to third party
Yes you can relinquish your rights and you can refuse to be a legal heir
legal heirs are bound to complete the sale agreement transaction.
Dear Sir,
The best method is to execute relinquish deed and come out of the family.
If you do not want any benefits out of this deal or not availing any assets of your father then you can decline the request made by the company to execute the sale deed on behalf of your deceased father stating that you are not interested, let them go to the court and get them legally done as per law.
The court can execute the sale deed as per law if you legal heirs are not willing to to the same.
1. You may not agree for any requests tht are made by the company to avoid legal commitment.
2. Since you foresee many complications in this including LTCG, you may better keep off from any such commitment and also do not entertain any claim made by the company and you will be legally right especially when you have not availed any benefits out of your deceased father's assets or any other properties.
3. The unregistered sale agreement is not enforceable in law and moreover the agreement is not valid beyond three years of time, it will be barred by limitation hence it is invalid at this stage.
4. Since the sale agreement is barred by limitation, they can very well ignore the existing agreement for sale and proceed with the sale of the proeprty without cancelling the existing agreement of sale