You need original chain of documents ie agreement entered into between builder and original purchaser whose name is reflected in share certificate
further sale deed between first owner ad reflected in share certificate and seller
Name mismatch in Share certificate
I am interested in buying a property and we were in talks with the seller (first owner). Upon checking the documents we found that the agreement was executed between the seller and the builder but the share certificate has a name that is no where mentioned in the agreement and the society also do not have any records of the said name. And the seller's name appears on the back side of the share certificate which as far as i know happens when the property is transferred. What can be done in such scenario and what clarification or documents do i need to ask for from the seller or the society.
Asked 3 years ago in Property Law
Religion: Hindu
9 Answers
The agreement is between the builder and the current owner (the seller) and the owner has no idea how the other name got added to yhe certificate. Also the society has no records of the other name. The agreement between the builder and the present owner was executed in 1993-94. The share certificate was issuer in 1997 in some other name and then transferred to the owner in 1999.
Asked 3 years ago
The seller has to take up the issue with society as to how name of some other person is reflected in the share certificate particularly so when flat was sold by builder to seller only
The seller had contacted the society, that's when the society checked the records and found there was no record of the other name except for the share certificate. The society claims it to be an error and are ready to give a clarification on the society letterhead. Will that be enough or are there any other documents that need to be asked for.
Asked 3 years ago
Firstly the sale agreement is not a valid title document.
Besides, it is not known that how a third person's name has been mentioned in the share certificate if your vendor was the first buyer to whom the builder executed the sale deed.
The document what you refer to here may not be proper if there is no anser that how could a third person's name creep into the housing society's share certificate without any valid reason especially if your seller is the first purchaser.
You may better refer the documents related to the property before a local lawyer and obtain a proper legal opinion and proceed only if recommended after clarifying all your doubts in this regard.
The sale agreement between the seller and the builder is not a valid document to confer title to your seller to sell the property to you.
If he possesses a valid registered sale deed on his name then you can consider him to have valid title to sell the property.
However it is reported that the sale transaction took place in the year 1993, whereas the share certificate was issued in the year 1997 that too it is reported to be transferred to the seller in the year 1999, then who was the person who had bought this property in between?
What is the guarantee that the unknown third person may not create a problem at a later stage after you purchase the property on the basis of the records held by the society?
You may find the answers to all these riddles only when you produce the documents related to this property before a local lawyer and clarify the details without which it is not advisable to go ahead with the purchase of the property now you propose to buy.
Such errors are quite possible in manual maintenance of records. Take a declaration from society that this is an inadvertence error on their part. Issue a public notice in local paper informing the error seeking objections if there is any such person named incorrectly named. Also take a notarized declaration by the seller with regard to such error.
The society may be in hand in gloves with the seller and the seller seems to be desperate to somehow sell the property which appears to be with defective title to the seller.
Why do you hesitate to refer the matter before a local lawyer for a legal opinion?
The paltry amount you may spare to obtain legal opinion may save your huge money that may get tangled by buying the title defective property.
The society's clarification about this is unreliable because it is not a petty or minor error, it is related to an immovable property, hence the secretary cannot decide to render clarification on his own without the approval of the general or emergency meeting of all the members of the society.
Besides if the society decides to give clarification through their letter head, will they then indemnify the buyer against any legal dispute in this regard at a later stage?
If this error was detected at the stage where you have not yet bought the property, it is advisable that you get the things made straight before you buy it or you may ignore the idea of buying this defective property.
Name of third person has to be cancelled on share certificate
mete letter by society is not sufficient
Dear client suggest that in such kind of scenario you may verify the property accordingly and see clarification from the register office
You need to check whether he is a legal heir and has sole right in property. There are incidents when share certificate is not transferred in the name of legal heirs that doesn't mean that he is not the owner. Other documents need to be examined
