• Selling a shop in a building

Hello
i own a building on my single name.
have a shop , two atms , a hospital ( all on L&L) and my residence.
i wish to sell only the the shop .

as i was told that i will not be able to form an AOA/ CHS for want of requisite number of apartments following are my queries


a) what are the specific points to be included in the sale deed , if forming an an AOA/ CHS is not possible 

b) after the sale deed can the shop owner get loan against the shop if he wishes, on the basis of index 2 ? 

c) since i will not be able to form an AOA/CHS , can the shop owner has an option to apply for a deemed conveyance deed ?

d) can the shop owner on the basis of index 2 , apply directly to include his name in 7/12 and property card ?

regards

umesh
Asked 1 year ago in Property Law
Religion: Hindu

First answer received in 30 minutes.

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7 Answers

1. Since it is a building consisting a house and few commercial tenements there is no necessity to form an AOA or CHS.

You can demarcate the shop properly so that you can sell it independently after separating the same from the main building by mutating it 

2. The eligibility for the loan to the  shopkeeper will be decided by the lender.

3. If the shop is transferred to the buyer by executing a registered sale deed, then what is the necessity for any deemed conveyance deed. 

4. If the shop is sold to him by  a registered sale deed, then the buyer can very well enter his name in the  revenue records including the index II

T Kalaiselvan
Advocate, Vellore
90102 Answers
2503 Consultations

On basis of registered sale deed shop owner can get bank loan

 

2) there is no society formed so option of deemed conveyance in favour of society does not arise 



3) sale deed should mention that since number of owners of flats , shops in building are below minimum 7 required to form society No society is being formed 

Ajay Sethi
Advocate, Mumbai
99900 Answers
8153 Consultations

1. drafting of a sale deed is skilled job which an advocate can only do . there are tens of such issues which are to be incorporated only after checking the deeds. So meet an advocate.

2. Yes

3. Yes.

Devajyoti Barman
Advocate, Kolkata
23658 Answers
538 Consultations

a. not possible to enlist the specific points. This platform is for general legal queries only. The usual sale deed has to be prepared. In the recital give the title history explaining your ownership of the shop

b. the bank will require the borrower to deposit the original sale deed as security against loan

c. no. he should be concerned only with the shop. you will retain ownership of the land and other premises in the building standing on such land. 

d. these documents are for land. the buyer would be purchasing only the shop, not any share in the land

Yusuf Rampurawala
Advocate, Mumbai
7906 Answers
79 Consultations

a. As per rule at least 7 members must be for forming society or association. 

- If there is nor required members then you cannot form AOR or CHS

- You can mention about the said shops as separate unit in the sale deed 

b. On the basis of sale deed , you can get the bank loan even on the portion of the shop on the basis of index 2

c. Yes

d. Yes.

Mohammed Shahzad
Advocate, Delhi
15836 Answers
242 Consultations

Due diligence of the property papers and other requisite documents need to be done Before giving any advice on this matter. Without Going through the documents in detail legal advice can be rendered.

contact local lawyer and show him all the documents and take his advice for the same

Siddharth Jain
Advocate, New Delhi
6619 Answers
102 Consultations

 Dear Client,

here's the guidance regarding the sale of your shop

a) Put the following in the sale agreement: An overview of your store entitlements to shared spaces The quantity of consideration In order to prevent future incidents of this kind, there will be particular requirements or limitations placed on the use of the property.

b) The proprietor of your store may obtain a loan secured by the store after it is sold. In order to close the transaction, the lender would need to have the selling deed and the Index II registered as evidence of ownership.

c) Under the Maharashtra Ownership of Flats Act, 1963, the shop owner may request a deed of presumed conveyance even although an AOA/CHS may not be feasible in certain circumstances. Legitimizing ownership rights would result from doing this.

d) The proprietor of the store may also go to the register for his name to be included in the 7/12 extract and property card with the sale deed as proof of ownership. This will establish their legal ownership in the revenue records.

It is advisable to consult a legal expert for specific guidance.

Thank you.Hope this answers your query.

Anik Miu
Advocate, Bangalore
11028 Answers
125 Consultations

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