• Title clearance process & regularisation

Background:
Mr. C (Seller) & Mr. D (Buyer) has agreed on a formal price for a resale flat and Mr. D paid a of 1% token to Mr. C. Mr. C has submitted the photocopy of all the chain documents. The chronological events of the property are as follows:
1) Flat allotted by Housing Board on 3-Mar-93 to Mr. A under LIG scheme. Allotment letter and necessary charges paid thereon to Housing board.
2) Mr. A sold the flat to Mr. B vide agreement dated 21-Sep-94 (executed on a stamp paper of Rs. 20/-) and gave a special POA (executed on a stamp paper of Rs. 50/- & notarised) to carry out further transactions and re-delegate all powers including the powers to transfer / regularise the said tenement as per the provisions of regulation 25 of MHADA (Estate Management, Sale, Transfer & Exchange of Tenements). The Agreement and SPOA have not been registered.
3) Mr. B vide agreement dated 21-Jan-98 sold the said flat to Mr. C and Mr. C is occupying the said flat since then till date i.e. for last 22 years. Stamp duty of Rs. 5000 has been paid but agreement has not been registered. Further, an amount of Rs. 25000+ Rs. 500 has been paid as stamp duty in Jun-09 under amnesty scheme as a differential towards inadequate stamp duty as per the market value in Jun-09. However, the agreement has not been registered.
4) During this period, the deed of conveyance was done and a society has also been formed. As per the deed of conveyance, the name of original allotee i.e. Mr. A is appearing.
5) The name in the share certificate has been endorsed in favour of Mr. A, then Mr. B in Jun-98 and Mr. C in Jul-98. Mr. C is in possession of original share certificate and paying monthly outgo regularly. The electric, gas pipeline is the name of Mr. C
Query List:
a)	Is the title clear and marketable?
b)	NOC of Housing Board is not available from Mr. A to Mr. B? Is it legally OK, since as per the housing board provisions, flat cannot be sold within 5 years from the date of allotment. However, the flat has been sold within 18 months from the date of allotment.
c)	Is the agreement between Mr. A & Mr. B is valid? 
d)	Will the agreement between Mr. A & Mr. B attracts stamp duty?
e)	Does Mr. A has any powers as on date or any future scenario wherein Mr. A or his legal heirs can raise a claim since as per deed of conveyance, name of Mr. A is appearing and none of the documents have been registered?
f)	Whether registration of all chain documents needs to be done? I am given to understand that registration was not mandatory before 2001 and hence, documents have not been registered
g)	The title of agreement is “AGREEMENT” and not as ‘SALE DEED” OR “AGREEMENT FOR SALE”
h)	Way forward to regularise the entire transaction.
Asked 1 month ago in Property Law
Religion: Hindu

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12 Answers

You don’t have clear and marketable title to property 

 

2) agreement is not valid as property sold in contravention of regulations 

 

3) it would attract stamp duty 

 

4) registration of sale deed is necessary 

 

5) deed of confirmation to be executed by A and has to be registered 

 

6) deed of confirmation to be executed by B 

Ajay Sethi
Advocate, Mumbai
76978 Answers
4621 Consultations

5.0 on 5.0

You would then have clear and marketable title to property 

2)since MHADA has not taken any legal proceedings for setting aside allotment better don’t rake up the issue 

Ajay Sethi
Advocate, Mumbai
76978 Answers
4621 Consultations

5.0 on 5.0

2.The agreement may be challenged on ground of registration. 

3. Agreement must be registered

a) The title is defective as the agreement must be registered. 

b) noc too is needed for future clear title. 

c) The agreement is invalid on grounds of registration

d) yes

e) yes they can claim

f) yes the chain of documents must be perfect and it should be registered

g) title may be anything the internal averments are necessary

h) you need to get the same registered if the earlier parties are present and also noc from mhada

Prashant Nayak
Advocate, Mumbai
20589 Answers
38 Consultations

4.4 on 5.0

1. The unregistered title deed cannot confer title to the holder of the property.

2.  This indicates that it is an illegal transaction or not legally valid transaction.

3. It is not legally valid.

4. Yes, the sale agreement is not a  proeprty document, the registered sale deed can only be considered as a proper property document.

5. A's legal heirs can claim the property rights at anytime in future.

6. It was always mandatory to register the document ion respect of immovable property.

Unregistered document will not confer title to the property holder.

7. Agreement of sale is not a title document to the proeprty.

Registered sale deed alone can be legally recognized as  title document.

8. Produce the relevant papers before an experienced local lawyer and proceed as per his advise/suggestions. 

 

T Kalaiselvan
Advocate, Vellore
66984 Answers
884 Consultations

5.0 on 5.0

MHADA may be approached with an application to issue NOC on the sale or transfer of property by condoning the delay to approach the authorities in this regard.

You would be instructed to follow the procedures or formalities in this regard, which you may comply with. 

T Kalaiselvan
Advocate, Vellore
66984 Answers
884 Consultations

5.0 on 5.0

1. after the flat was allotted to A by MHADA, there was a restriction against him from selling the allotted house within 5 years from the date of its allotment

2. thus without NOC of MHADA, A could not sell the flat to B before expiry of the stipulated period

3. thus the first transaction from A to B is invalid and illegal in the eyes of law

4. as a consequence all subsequent transactions will also be equally hit

5. the first step in this case is to regularise the transfer from A to B by getting MHADA NOC

6. Once that is done, then A and B will have to register a sale deed between them which will properly transfer the title from A to B. 

7. As the agreement between A and B was not stamped and not registered, first full stamp duty with penalty has to be paid on that agreement and then they can register a formal sale deed on Rs. 100 stamp paper

8. then B sold the flat to C. For that there was an agreement which came to be duly stamped under amnesty scheme. Now for C to get the title, B will have to register a formal sale deed with him

9. Only after above steps are done, can C have a clear and marketable title to sell the flat D

10. In the sale deed to be executed between C and D, it is advisable if A and B join as confirming parties 

11. If A is not available or traceable, then before proceeding with the transaction it is prudent to issue public notice in local newspapers informing about the proposed sale from C to D

12. If no objection is received to this public notice, then C can register sale deed with D with B joining as a confirming party 

 

Yusuf Rampurawala
Advocate, Mumbai
5348 Answers
34 Consultations

5.0 on 5.0

Mr. A and Mr B will have to make an affidavit executed before competent authorities under oath to state specifically that they have NO OBJECTION for the rights of transfer ,title, occupation, possession and interest if it is conveyed to you.

Pl take special powers of attorney from A and B with regard to process the act of conveyance deed before the competent authorities under due process of law. 

Ramesh Pandey
Advocate, Mumbai
1303 Answers
5 Consultations

5.0 on 5.0

any agreement to sell or sale deed which is not registered does not have validity. 

Noc required From Housing Board. 

Without Noc transaction is not valid . 

it will not attract any stamp duty. 

yes A heirs can claim. 

If the sale deed not registered then it doesnot have a validity.

Mohammed Mujeeb
Advocate, Hyderabad
17332 Answers
11 Consultations

4.5 on 5.0

Title is not disputed but sale transaction are not proper. They had to be effected through registered sale deed. C paid the stamp duty in 2009 than had to get it registered also.

Well never mind, you can go ahead with purchase. NOC from hosing board was must but their claim is barred by limitation. 

And actual sale on documents took place in 98. 2 months prior to complete 5 years. No issue now.

c. was not valid but cannot be challenged now.

d. yes.

e. no

f. wrong, registration of sale deed was always mandatory.

g. but the content of agreement is sale of property which itself suggest nature of agreement. 

C can pay the lapse stamp duty on sale between A and B, title will be perfect.

 

Yogendra Singh Rajawat
Advocate, Jaipur
20144 Answers
28 Consultations

4.5 on 5.0

It is not legal to buy a flat allotted under MHADA  until a completion of period of 5 years from the date of its allotment

After execution deed of confirmation from A  Mhada Noc would not required.

 

Mohammed Mujeeb
Advocate, Hyderabad
17332 Answers
11 Consultations

4.5 on 5.0

1. No title is not clear because there is no registered sales deed in favour of Mr C.

2. Yes agreement is valid because sale was not executed with in 5 years. 

3. No mr A of his legal heirs cannot represent any claim for that property but they are bound to get the property registered on name of current owners.

4. Mr C should find out about A or his legal heirs and get the sales deed registered on his name to make the title clear. 

Mohit Kapoor
Advocate, Rohtak
9322 Answers
3 Consultations

5.0 on 5.0

a) POA is not having any legal value for the transfer of property , specially if it is not registered from the office of the Registrar. and if not given to any relative. 

- Hence, the title is not clear and marketable. 

b) Yes , since, the rule of the society was not complied , hence the society not issued NOC . 

c) No , legally not valid agreement

d) Yes 

e) Yes 

f) Yes, registration is mandatory , specially if POA was given to blood relation. 

g) Yes

h) You should approach court for declaring the owner of the property . 

Mohammed Shahzad
Advocate, Delhi
4180 Answers
43 Consultations

5.0 on 5.0

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