• Agreement made in 1996 with my brother stamp duty paid but not registered. Query raised by bank.

I had purchased 50% share from my real brother in [deleted] in mumbai , maharashtra .
50% share i was holding in the flat which was bought in 1979 .
Stamp duty is paid but agreement is not registered . i have sold this flat in march 2020 & registered the new agreement . the buyer bank has raised querry that agreement of 1996 is not registered so they have upheld loan sanction to new buyer .
There is no dispute with my brother & he is alive & ready to sign any papers in current date as per bank requirements . 
Share certificate is in my name since 24 years , possession is with me , society has issued me sale noc , society bill is in my name , in mumbai we need collector noc also for sale of flat as it is collector plot which i have procured from collector noc in my name & new buyer name .
Querry : let me know what is way to resolve bank querry as my brother is ready to sign any papers as per bank requirements for agreement not registered in 1996 .
1) can i make deed of confirmation & get it registered in present date .
2) can i make release deed & get it registered in current date .
3) new agreement made is agreement for sell with new buyer in march 2020 
 so sale deed is to be made as per bank requirements & registered putting 
 bank cheque details in sale deed . can i make my brother confirming party in 
 sale deed to be registered with new buyer .
 what is other way i can do so that my problem is resolved & the bank 
 sanctions loan & the issue of 1996 agreement not register is resolved .
 if possible if any format or way is there which i can execute kindly let me 
 know . i can pay extra for any document to be executed with bank so that 
 the issue of bank loan is resolved . send me details on my mail id [deleted] 
 kindly give me your advice . [deleted]
Asked 4 years ago in Property Law
Religion: Hindu

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22 Answers

Deed of confirmation can be executed by your brother . It should be duly stamped and registered 

 

2) no need for release deed 

 

3) your brother can be confirming party in sale deed 

 

4) best option is for execution of deed of confirmation 

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

1. As per a recent Mumbai HC judgment, the Latest Registered Sale Deed shall be considered Final for proving Title Ownership and for all legal purposes.  There is no need for earlier Registered document, since IF the registrar has registered the latest sale deed without earlier registration charges, THEN it is legally Final.

2. However, IF there is no subsequent registered Deed, THEN the original unregistered document can be sent for Adjudication to the IGR office and ordered registration fee & penalty can be paid to regularize it.  There is no other documentations required for this purposes.  This can be done using the services of a local Registration Agent.

 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Hello,

  1. If agreeable to the bank, your brother can sign as a confirming party as the society transfer has happened in your favour and both your brother and the Society has no objection to the sale.
  2. Alternately, the unregistered Sale Agreement has to be left alone and you can get your bother to relinquish his share in your favour and register the same in the present date.
  3. The bank ought to have objection once your title is clear.

S J Mathew
Advocate, Mumbai
3548 Answers
175 Consultations

5.0 on 5.0

If Bank permits to perform "Tripartite agreement" then you can make it and registered as sale deed. If you want I can perform a "Tripartite Sale Deed" draft in your favor. And this is valid because at end of the day , new buyer is going to get clear title transfer from all previous owners. 

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

1.As per banking rule, it is mandatory to collect the registered or certified documents before sanctioning the loan , and hence bank try to secure the loan ,so that it cannot be challenged by the earlier owner of the property. 

- Yes , a registered confirmation deed by your brother will serve the requirement of the bank.

2. Since, you are selling your share to the buyer , hence a release deed will create problem , so no need for the same. 

3. Yes 

Mohammed Shahzad
Advocate, Delhi
13230 Answers
198 Consultations

5.0 on 5.0

Bank verifies the documents from its empaneled lawyer.  Contact the lawyer and the lawyer who prepared the sale agreement in March, 2020 (fault lies with this lawyer who didn't check the previous documents before registration of sale agreement) and find out a way agreeable to the bank lawyer and there is no hinderance in documents in future.  In my opinion, the best way is to get the old agreement registered now and and after getting the new agreement cancelled, get the same registered afresh to avoid any complication in future.

Dalip Singh
Advocate, New Delhi
1084 Answers
36 Consultations

5.0 on 5.0

Dear Sir,

You are suggested to have the relinquish deed done in your favour from your brother and then the issue of the bank objections will be solved. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

1. Yes. But you need to register it. You can also register the earlier agreement by paying penalty

2. Same as above

3. If you need banks assistance then you need to register the old agreement or execute new registered agreement

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

Instead of showing agreement, brother should have acted as co seller in the sale deed. 

Deed of confirmation will attract useless stamp duty. No need. Tell the bank that brother is willing to give affidavit about confirmation of sale of his share.

Current date released deed or gift deed also a valid option but date of sale is former. Bank may again question validity of release deed.

If sale deed is not register yet than dont disclose the agreement and brother will act as co seller in sale deed.

If you will mention agreement in sale deed than registrar will charge stamp duty on that transfer also with heavy penalty.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Please approach the sub-registrar of property in your area and fill a form to register the sale deed of 1996 .

They would register it with some penalties which you may have to pay.

The bank is objecting for non-registration of your sale deed of 1996 therefore they have held back loan process. 

Pl get the registration of sale deed done your matter would be solved. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

Your brother can join as a confirming party in the sale deed between you and buyer

That should answer the bank's query and the apprehension it has 

A confirmation deed can also be made between you and your brother and the 1996 agreement can be annexed to that deed and registered together 

But for that you will need to get the 1996 agreement adjudicated by the Collector of Stamps who will give a certificate that proper stamp duty was paid. Then you have to lodge that document for registration with Sub registrar who will require you to pay penalty for late registration (as per law a compulsorily registrable document can only be registered maximum within 8 months from the date of its signing which can be allowed by the Registrar by paying a penalty)

So the 1996 agreement cannot be registered now. But it can be registered by annexing it to the confirmation deed. 

Yusuf Rampurawala
Advocate, Mumbai
7514 Answers
79 Consultations

5.0 on 5.0

if there is an agreement and stamp duty and the argument amount is already paid then you have to get it resistant and provided to the bank please be aware that you have to pay the stamp duty on the value of the property at the current rate because your now agreement is in march 2020 and registration for this sale deed has not been done till date so it is time where you have all the noc to proceed for the sale  registration in your favour may solve the problem however it will be advised to check with the bank if they are happy with the procedure and be able to release the loan.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Just add him as co seller and do not mention agreemnt. 

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

If full stamp duty with penalty is already paid under amnesty scheme then no need to pay any further stamp duty

You have to pay registration fee with penalty for the 1996 agreement. But in my view that document cannot be registered since the time of 8 months from date of signing for registering that document is already over

So you can get that 1996 agreement registered by annexing it to a deed of confirmation for which nominal stamp duty is required. As to the registration fee, that the registration clerk can tell you. 

Best option here is to make your brother a confirming party in the sale deed

You need to ask the bank whether that would be acceptable to it

Registrar has no jurisdiction to refuse your brother from being a confirming party

Yusuf Rampurawala
Advocate, Mumbai
7514 Answers
79 Consultations

5.0 on 5.0

1) you should go ahead for execution of deed of confirmation 

 

2) registration charges are maximum Rs 30000 

 

3) you should approach bank whether in sale deed your brother can be confirming party 

 

4) better option is for execution of deed of confirmation 

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

Dear sir,

Based on the stamp duty paid by you towards the agreement to sell that sub registrar will deficit the amount at the time of registration of sale deed and you can make your brother as confirming party in sale deed even if you have not entered into confirmation deed and if confirmation deed is entered between you and your brother and the same is registered  then in such a case your brother either you make him a party as a confirming in sale deed or not is not mandatory. 

Ayesha Sultana
Advocate, Bangalore
280 Answers
1 Consultation

Not rated

You can do as aforesaid. How can you again execute additional deed when already an agreement is in existence better pay registration charges. If not then execute a fresh agreement. In fresh deed your stamp duty paid already will be wasted

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

your brother can execute registered deed of confirmation.

release deed not required. 

Please Consult Local Property lawyer. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

I have already advised you. Pl follow up it. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

1. You can get the proeprty registered on your name first to have a clear and marketable title on your name which will enable you to sell the property as an absolute owner.

You can get a confirmation deed executed in your favor and register the same. 

2. Release deed is not applicable to this situation.

3. As You have purchased the 50% share from your brother  it may  be appropriate to make him a confirming party in the sale deed.

 

 

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

Since you have paid the stamp duty as well as penalty under the amnesty scheme, you may not have to pay the stamp duty afresh in view of the stamp duty already paid, however you may have to pay the registration charges for registering the deed.

 


Since you have paid the stamp duty as well as penalty under the amnesty scheme, you may not have to pay the stamp duty afresh in view of the stamp duty already paid, however you may have to pay the registration charges for registering the deed.

 

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

- Yes, legally your brother can be a confirming party . 

Mohammed Shahzad
Advocate, Delhi
13230 Answers
198 Consultations

5.0 on 5.0

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