• Sale of property in joint ownership

I am purchasing a house which is currently registered in the name of a married couple i.e. husband and wife. Now the husband is asking to make the entire payment (including TDS) for the sale of their house in the name of his wife and he will give a NOC stating that he has no objections if the entire payment is made in his wife's account. Is it legally allowed? Any precautions which I need to take care of before executing the sale deed?
Asked 1 month ago in Property Law
Religion: Hindu

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9 Answers

The basic precaution is both the should sign the registered sale deed. The will solve all legal problems. So far payment is concerned both vendors should be paid the sale consideration in proportion to their respective shares in the property. Making any payment to one of the vendors may be challenged by other vendor.

Ravi Shinde
Advocate, Hyderabad
1590 Answers
19 Consultations

5.0 on 5.0

Since property is in joint names you should issue cheque for 50 per ce t in wife name  and 50 per cent in husband name 

 

mere NOC is not sufficient 

Ajay Sethi
Advocate, Mumbai
84937 Answers
5618 Consultations

5.0 on 5.0

1.  If the husband gives a POA in favour of his wife to receive his share of the proceeds, then it's legally permissible.

2.  The POA has to be registered in the Sub Registrar's Office.

Shashidhar S. Sastry
Advocate, Bangalore
3875 Answers
234 Consultations

5.0 on 5.0

Besides an NOC from the husband, you may narrate the fact that the entire sale consideration is made to the wife as consented to by her husband in the sale deed itself, to set at rest any dispute later, as a measure of extraordinary caution.

Swaminathan Neelakantan
Advocate, Coimbatore
1296 Answers
17 Consultations

4.9 on 5.0

The NOC given by husband towards the mode of payment and favoring his wife would be sufficient to transfer the sale consideration amount in favor of his wife, however the TDS is to be made equally on  both the names o enable them to file their ITRs and claim refund accordingly.

 

T Kalaiselvan
Advocate, Vellore
75051 Answers
1263 Consultations

5.0 on 5.0

Dear client, 

The payment being made in his wife's name and bank account seems to be fine since the property is on her name as well. However, the responsibility to deduct TDS on Property Sale rests solely with the Buyer even if it is financed by Home Loan or property is purchased from the builder. So, you are not required to pay the TDS amount to the seller. Please ensure that the payment procedure is being done in a well laid out and legal manner.

Thank you. 

Anik Miu
Advocate, Bangalore
3099 Answers
31 Consultations

4.9 on 5.0

Its not legally permissible the said things are done to avoid taxes. First you need to ensure that the said things are agreed by him in writing before you deposit the money

Prashant Nayak
Advocate, Mumbai
24936 Answers
58 Consultations

4.4 on 5.0

- Yes, you can transfer the consideration amount in his wife account , as she  is a joint holder in the property 

- However, for paying full amount prior to execution of sale deed is not suggested. 

Mohammed Shahzad
Advocate, Delhi
8498 Answers
92 Consultations

5.0 on 5.0

Hi, you can make a payment to the wife of the Seller. However, both the parties will come and execute  the Sale Deed in favor of you then only the valid title is pass on to you.

Pradeep Bharathipura
Advocate, Bangalore
5233 Answers
289 Consultations

4.5 on 5.0

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