Hello Team, We have an ancestral house in Allahabad (purchased by my Grandfather in 1975). Grandfather had two child, my aunt and my father. Post my fathers death, my aunt wished to divide the property 50:50 and she had filed a property case for division in 2015. We have also agreed the same, despite the same is in name of my father. (as was told by grandfather and grand mother, but we don't have any registered copy with us) Questions are: 1. Can i sale my undivided share to any third part? 2. Do i have to mandatory get the registration done in our name prior to that? 3. If my aunt agrees to purchase my fathers share, so i still have to do the registration prior to this transfer. 4. Will there be any tax complications if i transfer our share to aunt basis the mutual agreement and not through court. 5. What is the most practical and cost effective solution considering taxation and registry cost also.
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it is advisable to get mutation of property done in name of legal heirs
2) no purchaser will buy property if mutation not done
3) after mutation sell property by registered sale deed to aunt or third party
4) no tax complications if you sell property to aunt
1. If the buyer is willing to buy undivided and unidentified share in the property then the legal heirs of your father can execute a joint sale deed in favor of the prospective buyer.
2. No, the buyer can file a suit for partition at a later stage to get his share out of the jointly owned property.
3. No, in that case you and the other legal heirs of your deceased father can execute a registered release deed relinquishing your rights in the property.
4. On receiving a consideration amount for such transfer, you are liable to pay capital gains tax as applicable.
5. Release deed.
1. Since, she has already filed case for division before the Court , then you cannot sell any portion of the property without getting the court direction.
2. If your fathers share is not under challenge by aunt , then you can apply for mutation after submitting the death certificate of father
3. Being the legal heirs of your father , you have right to transfer the property in aunt name.
4. You all can execute Relinquishment or Gift deed in her favor
5. Registration of deed is necessary to transfer the property in her name.
As you say that the property was purchased by your grandfather in 1975, it is legally not an ancestral one. After your grandfather's time, it devolved equally upon your aunt and your father. As your father did not have any document to prove his exclusive title, his exclusive and absolute title over the property cannot be established legally. Against this background:
1. Technically, yes, but the third party may insist on division by metes and bounds before the sale.
2. & 3. After your father's death, all his legal heirs are entitled to equal shares in his estate. You cannot claim the whole share. All the legal heirs have to jointly execute the sale deed in favour of the buyer. There is no need for any registration in the names of the legal heirs before sale.
4. & 5. Tax implication in the form of capital gains shall remain the same.
Dear Client,
It is advisable to get mutation of property done in the name of legal heirs.
No purchaser will buy property if mutation not done.
After mutation, sell the property by registered sale deed to aunt or third party.
The sale will take effect on division of property.
On receiving a consideration amount, you are liable to pay capital gains tax as applicable.
Thank You.
1. Yes
2. No you can sell it before registration but your sale deed must be registered
3. No need
4. You can do it through mutual agreement If there is no stay from court
5 will
