• Property syndicate


Are there any limits on how many people can participate in a property syndicate in India. Or is dependent on which state you are in. Do all Syndicate members need to be present for stamp duty registration, or can they give their power of attorney for registration and not be required to be attend?
And finally do all syndicate members get to be on title of the property.
Asked 2 years ago in Property Law from Australia
Religion: Other
1. There is no such upper limit for a property syndicate in India.
2. It is not necessary for all syndicate members to be present at the time of registration of property and such syndicate member who can not physically present can give POA in favour of some other person who represents him in the Sub_Registrar's Office.
3.All such syndicate members will get title to the property correspondingin to their share.
Shashidhar S. Sastry
Advocate, Bangalore
1633 Answers
107 Consultations

5.0 on 5.0

Please clarify what do you mean by ' property syndicate'?
No such legal entity is in existence in India.
Devajyoti Barman
Advocate, Kolkata
12818 Answers
166 Consultations

5.0 on 5.0

There is no limit. The company or members, as the case may be, can through a resolution or agreement authorize any one of them to execute the sale deed which will include the payment of stamp duty, in which event only the authorized representative is required to remain present before the registrar. The question of title can be decided by executing an agreement before they venture in the business.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

1) SEBI has  notified the (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) to regulate the setting up and operations of alternate investment funds in India. 

2) Alternative Investment Funds’are defined 
as any fund established or incorporated in India
in the form of trust, company, a limited liability partnership or a body corporate which is a privately pooled investment vehicle which collects funds from investors, whether Indian or foreign, for investing
in accordance with a defined investment policy for the benefit of investors, and is not covered under the SEBI regulations to regulate fund management

3) minimum investment
that can be accepted by a fund from an investor
is INR 1,00,00,000 (Rupees One Crore Only 

4) regulations also prescribe that a placement memorandum detailing the strategy for investments, fees and expenses proposed to be charged, conditions and limits on redemption, risk management tools and parameters employed, duration of the life cycle of the AIF should also be issued prior to raising commitments and be filed with the SEBI prior to launching of a fund. 
Ajay Sethi
Advocate, Mumbai
45486 Answers
2672 Consultations

5.0 on 5.0

1. What do you want to mean by saying 'Property Syndicate'?

2. Do you mean buying of property collectively by multiple numbers of persons?

3. If yes, then there is no limit to the numbers of persons who can be joint owners of a property in India,

4. The joint owners can execute a POA in favour of the member who will execute and register the Title Deed in India for all of them. The said POA is required to be notarised before the an Authorised Officer of the Indian Consulate ( if the members stay out of the Country) to get its validity in India,

5. Yes, finally all such syndicate members will be the joint owners of the said property.
Krishna Kishore Ganguly
Advocate, Kolkata
18471 Answers
448 Consultations

5.0 on 5.0

If you are referring to the joint holding of the property by many members as property syndicate, then ther is no limit or restriction for that. 

Do all Syndicate members need to be present for stamp duty registration, or can they give their power of attorney for registration and not be required to be attend?
If some syndicate members are not able to be present for registration formalities in person, they may execute a POA in favor of their attorney to represent them during that time.

And finally do all syndicate members get to be on title of the property.
Yes, naturall all the syndicate members, being owners of their respective shares in the property, shall be entitled to title to the property accordingly.

Alternately, the most common structure for a simple unregistered property fund for the purpose of undertaking a development or making a passive investment is through a unit trust. Under a unit trust arrangement a company is created, which acts as trustee of a unit trust.

The investors in the fund pay money to receive units in the trust (alternatively, investors can get units in the trust and shares in the trustee company under a 'stapled arrangement'), and the company which is acting as trustee of the trust will hold the title to the property "on trust" for the investors in the fund.

If it's just a few friends and family getting together to buy a passive investment, then  an alternative to the unit trust is in establishing a property fund, which complies with the requirements of a 'small property syndicate'.
Under a 'small property syndicate' all of the investors are named on the title to the property as 'tenants in common' and there's a 'syndicate agreement', which sets out the rules of the game for each of the investors. There's also a management agreement entered into between the investors and a manager, and the manager (generally one of the investors) is appointed to provide the property management services for the property, such as collecting rent, arranging repairs and maintenance work.
T Kalaiselvan
Advocate, Vellore
35651 Answers
387 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer