• Selling property of deceased father

Dear All
We have a bungalow on a 99 years leasehold plot. The G+1 floor is owned by my father who passed away few years back. The second floor is built by me from Bank loan which is duly settled. There is no Will of him as such just a mutual agreement dividing the of the house (g+1)among we four brothers. Now we wish to sell the house with consent off all the brothers. I have few questions in mind:
1. Do we have to get the house registered/ mutated in our name before selling?
2. If the answer is yes, then the seller has to give the compensation equally to the four brothers or there can be one us who decides to act as lead and divide the money after the sale based on some mutual agreement. Please advise the nature of the agreement.
3. From the perspective of saving the LTCG, is it legally possible to add our respective wife’s name also in the sale agreement so that each family can buy more than one home.
4. Since I have made the second floor,will the plot will also be divided in that proportion?
Asked 11 months ago in Property Law
Religion: Hindu

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12 Answers

mutation has to be done before selling the property 

 

2) sale consideration should be paid equally to all 4 co owners 

 

3) wife name cannot be added in sale deed as they have no share in property 

Ajay Sethi
Advocate, Mumbai
94764 Answers
7543 Consultations

5.0 on 5.0

1. Yes. 

2. All four should act jointly and should execute sale deed. 

3. No. Wife are neither legal heirs nor they are owner of property. 

4. No. Second Floor portion too belong yo father so after his death property shall devolve upon his children and wife including sisters. 

Siddharth Srivastava
Advocate, Delhi
1246 Answers

5.0 on 5.0

No need. Just obtain legal heir certificate.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22646 Answers
31 Consultations

4.4 on 5.0

1. As per law, after the demise of your father intestate , his property would be devolved upon all the legal heirs equally, hence you four are only legal heirs and mother is not alive , then you each having 1/4th share in the property left by your father. 

- You can apply before the Revenue officer for mutation of the property after submitting the death certificate of father and said executed mutual agreement 

2. The the sale proceed amount will be distributed amongst all the legal heirs equally , and the purchaser may ask for signing the sale deed from all you four . 

- However, if anyone of you unable to go for registration , then he can execute a POA in favour of other . 

3. They have no role in the property during the life time of their respective husband. 

4. Since, your father was the owner of the G+1 , then this floor will come under the distribution , however you can ask for the expenditure of construction from all legal heirs equally. 

Mohammed Shahzad
Advocate, Delhi
13252 Answers
198 Consultations

5.0 on 5.0

1. Registration in favor of the legal heirs of the deceased is not necessary, but if necessary you can get it mutated to all your names jointly in order to sell the property by executing a  sale deed jointly in favor of the prospective buyer.

2. As the property has not been partitioned among all the legal heirs by a registered document, the mutually agreed division, if it was made by an unregistered deed, is not legally valid, besides the second floor was constructed by you without a permission or consent of your father or other legal heirs, hence if the others claim a share out of that floor also, you may have to move court to declare the title to your name based on the evidence, otherwise the sale consideration of that floor also shall have to eb divided among all the legal heirs, hence it is advisable that all the legal heirs may decide about sharing the sale consideration  amount mutually in an amicable manner..

3. LTCG is different from that of the exemption claimed, if you would like to invest the LTCG in your wife's property then you can claim exemption. Relief on capital gains tax is available when LTCG is reinvested in the name of the spouse.

4. Even though you constructed the second floor out of your own funds, but you do not own the land underneath, hence you cannot claim title to the property owned by your father.

In the given situation if your cosharers claim a share in that property too, then you may have to amicably settle the issue instead of stretching it to legal solutions. 

T Kalaiselvan
Advocate, Vellore
84965 Answers
2200 Consultations

5.0 on 5.0

Dear querist, my opinion is as follows:

First, every question will be answered in the same manner as you asked. 

1. For the first question: 

Yes, you have to get it register in your own name. No person can sell anything unless he owns it or has authorization to do it by owner. 

2. For the second question:

This can be done either way:

a. You can do a single sale agreement where every brother has to sign the document and therefore, money will be distributed accordingly. 

b. You can make a Special Power of Attorney (SPA)and give it to one of the brother. This SPA gives power to one of the brother to sell off the property and accordingly distribute the money. It will be incorporated in the SPA. 

3. For the third question:

Yes, you can do so. 

4. For the fourth question:

It depends on the agreement between you brothers. 

For any further query, feel free to call. 

Puvali Singh
Advocate, Delhi
40 Answers

5.0 on 5.0

1. No

3 you can do that

4.  Yes

Prashant Nayak
Advocate, Mumbai
31955 Answers
179 Consultations

4.1 on 5.0

Transfer of ownership: Since your father passed away without a will, the property would generally be inherited by all his legal heirs, which includes you and your brothers. It is advisable to get the property registered or mutated in the names of all the legal heirs before proceeding with the sale. This will establish clear ownership and avoid any future disputes.

 

Distribution of sale proceeds: If all the brothers are owners of the property, the sale proceeds should ideally be divided equally among the legal heirs, unless there is a mutual agreement specifying a different distribution. It is recommended to have a clear written agreement among all the brothers regarding the division of proceeds to avoid any conflicts.

 

Adding spouses' names: From a legal perspective, it is possible to add the names of the respective wives in the sale agreement. However, it is important to consult with a lawyer to understand the implications and tax considerations involved in such a transaction, including the applicability of Long-Term Capital Gains (LTCG) tax.

 

Division of the plot: If you have constructed the second floor using a bank loan, it does not necessarily mean that the plot itself will be divided. The division of the plot would depend on the legal provisions and any specific agreements or arrangements made among the brothers. It is advisable to consult with a lawyer to understand the specific laws and regulations governing property division in your jurisdiction.

 

 

Anik Miu
Advocate, Bangalore
8910 Answers
110 Consultations

4.7 on 5.0

You should have right of building cost on second floor 

 

2) ground plus one floor should be divided among all legal heirs 

 

3) if other legal heirs are willing to pay building costs then ground plus 2 floors should be divided equally 

Ajay Sethi
Advocate, Mumbai
94764 Answers
7543 Consultations

5.0 on 5.0

You are entitled to get the cost incurred for constructing the building reimburse properly because there are evidences to prove that you availed bank loan and repaid it .

So you can deny the partition without settlement of the amount due to you. 

T Kalaiselvan
Advocate, Vellore
84965 Answers
2200 Consultations

5.0 on 5.0

Yes you can claim the same from brothers as stated above

Prashant Nayak
Advocate, Mumbai
31955 Answers
179 Consultations

4.1 on 5.0

Dear Client,

In the absence of a will, the property is typically divided according to the laws of intestate succession. This could mean that the property is equally divided among the legal heirs, which would include you and your brothers. However, if there was a mutual agreement dividing the property amongst the brothers, that agreement could potentially supersede the default rules of intestate succession. If you obtained a bank loan and built the second floor with the consent or knowledge of your father and brothers, you have a stronger claim to ownership of the second floor. However, the specifics of any agreements or understandings among the family members would be crucial in determining your rights. The valuation of the property will play a significant role in determining how compensation should be divided. If the valuation distinguishes between the land and the structures (i.e., the ground floor and the second floor), then it may be reasonable to allocate compensation accordingly.

Anik Miu
Advocate, Bangalore
8910 Answers
110 Consultations

4.7 on 5.0

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