- Ascertain from municipal authority of pending arrears of tax.
- Execute a registered sale agreement and than give advance.
- Stamp duty paid on agreement to sale will be deducted at the time of registration of sale deed.
Tax paid issue on the apartment
I am looking to buy a flat that is 7 years old in terms of construction but the tax has not been paid for the last 15 years which amounts to 9.5 lakhs as per the seller. He wants this money to be paid as token amount so that he can clear this tax issue and then sell the home to me with all the clearance. Is there something that I should be worried about if this just came up now and he might be hiding other nuances?
Asked 3 years ago in Property Law
Religion: Muslim
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11 Answers
This involves lot of issues which are not revealed by the seller.
Firstly, the building was constructed seven years ago then where is the question of paying taxes for the last 15 years.
The local civic body or the competent authority would have sealed the building for default in payment of property for such a long period hence it is not known whether the seller is telling truth or cooking up stories in this regard.
Since it involves practical issues namely title, tax payments, genuineness of the seller, you always can obtain a proper legal opinion even before you want to enter into a sale agreement instead of repenting at a later stage if you have been defrauded.
1. Before advancing a large amount, get the property documents vetted by a Lawyer and then only commit.
2. Through your reliable person, you can know the amount to be paid towards tax for the property and then only decide.
You should have indemnity clause in sale deed to indemnify you in case of third party claims
2) also ask him to obtain no due certificate from society
There isnt a society established in this apartment. This is based in Bangalore and the idea of apartments/flats is still getting registered for most of the people here. Even if I have an indemnity clause I know that if things go wrong cases run for years sadly in India. To give some more details the property was taken by a builder in 2015 and the builder demolished the house and built the apartments. The previous owner didnt clear the tax for 8 years prior to the construction, then the builder never bothered doing it and now even the owner of this apartment hasnt cleared it so far. Also, this apartment has 5 flats in it. The one I am looking for is in the 4th floor which is a penthouse. I am not sure why he will have to clear everything before selling it to me. What can I do clarify things better and gain the necessary insight before making the purchase?
Asked 3 years ago
Has seller paid maintenance of the flat
check with the builder or with association formed of flat owners
Penthouse on 4th floor will be illegal and it may be regularised when the Akrama-Sakrama or other similar scheme State Government is mooting comes into effect by collecting development fees.
You obtain a proper legal opinion from an experienced and expert lawyer.
If recommended you can proceed otherwise you may drop the idea of purchasing this property which is likely to attract legal issues due to non payment of taxes.
You are not obliged to pay the arrears of taxes that your vendor kept pending.
It's better you make such agrement to sale in order to pay the said tax amount
1. What is your protection if he refuses to sell you after you pay him the said money and he pays of his tax dues?
2. You can offer to buy his flat with the tax dues by paying him the consideration reduced by the said tax amount which you shall pay directly to the tax authorities.
1. It might be risky to pay him the said amount now.
2. Buy the property with the liability and pay tax directly to the authority after registering the property in your name.
Dear client I am sorry to hear that but in this case you can make a contract of such a nature that it will protect you from such other future situtton.
