I have got into an agreement to buy an under construction apartment from an NRI (seller) living in the US. The seller has issue a GPA in the favour of his brother living in India. The problem that has come up is in the name of the seller. His name in his passport is Ravi Kumar Sharma and the same name is present in his NRE/NRO bank accounts in which he wants his payments. However, the property is allocated to him by the builder in the name of Ravi Sharma (without 'kumar'). His PAN card and other Indian ID documents have his name as Ravi Sharma, whereas his passport and hence all the IDs created in the US are under the name of Ravi Kumar Sharma. Since his bank account is under the name of Ravi Kumar Sharma, he wants me to make all payments in that name, even though the property is under Ravi Sharma name. My question is, can I do that? What are the implications of that? I also need to take a bank loan, so it is possible that the bank may also object to this when i go to them. I have been told that this can be sorted out by the seller by giving an affidavit that Ravi Sharma and Ravi Kumar Sharma are one and the same person. Is this right? If so, is the process of getting an affidavit in the US different from that in India? Does it need to be registered in an Indian court also?
Asked in Property Law from Noida, Uttar Pradesh
1) is the GPA registered ?
2) for sale of property registration is a must
3) you should issue cheque only in name of Ravi Sharma and not Ravi kumar Sharma as sought by seller
4) bank will object to it if you issue cheque in name not mentioned in sale deed and PAN card
5) seller can give affidavit that both are one and same person
1. He should execute a notarized and sworn affidavit to state that Ravi Kumar Sharma and Ravi Sharma are one and the same person.
2. Furthermore, the POA which he has made in favour of his brother should reflect his name as Ravi Sharma as this is the name mentioned in the conveyance deed executed in his favour by the builder.
3. You can make payments in favour of Ravi Kumar Sharma. However, the acknowledgment should be issued by him in the name mentioned in his conveyance deed i.e Ravi Sharma.
4. The bank is most unlikely to object if this man executes the affidavit as mentioned above.
5. The affidavit should be compatible with the Indian and not US law as the property is situated in India and not US.
First of all the property is being sold through a GPA by the seller and not by himself.
Whether the GPA deed has been registered or not?
The holder of GPA cannot enter into sale agreement or execute a sale deed if the GPA deed is unregistered.
Assuming the GPA deed is registered, what is the name of the principal in the GPA deed? What is the name in the title document of the property intended to be sold now?
If the names in the GPA deed and title deed is Ravi Sharma only,then if you are paying the sale consideration to Ravi Kumar Sharma, the payment is deemed to have been made to a third person and not to the vendor.
Risk is involved.
An affidavit from US can be valid provided attested by a Notary public in US or by Indian Consulate, it need not be registered in India.
1. You have no evidence that Ravi Kumat Sharma and Ravi Sharma are the same person and not two different persons,
2. If you buy the property from Ravi Sharma then you can not make payment to Ravi Kumar Sharma,
3. You can ask him to apply for a Court order cdeclaring that both the names belong to the same person,
4. Otherwise there might be a risk in buying the said property.
If Ravi Sharma and Ravi Kumar Sharma are same person then better to ask the seller or power of attorney holder to provide one and same certificate issued from Village officer or Tahazildar before the registration of documents.. Otherwise there might be a risk in buying the said property. Use the name of the seller in the sale deed as Ravi Sharma @ Ravi Kumar Sharma .Use the money transactions through your bank or RTGS to the seller's account.