Sir /madam, my mother is selling her flat in a Coop Hsg Society. The purchaser has to yet pay cheque of Rs 10 lakhs. Rs 35 lakhs will be loan amount from Bank of purchaser. The agreement value is Rs 50 lakhs. Rs 5 lakhs cheque has been credited to my mother (vendor) as token amount. The purchaser says his bank will issue cheque for Rs 35 lakhs in the name of my mother (vendor) once registration of flat is made. Also purchaser has given 2 blank post dated cheques but has not specified when my mother should deposit these cheques (worth Rs 10 lakhs) So in effect, my mother (vendor) has received only cheque of Rs 5 lakhs till date. Now purchaser wants my mother to register the flat in his (purchaser's) name before March 31st 2016, to avoid paying more stamp duty after 31st March 2016. He has already paid relevant stamp duty as of 23rd March 2016. My question is should my mother (vendor) go forward with the registration of her flat in the name of the purchaser before cheques worth Rs 10 lakhs are credited to her account? Would such registration compromise the legal interest of my mother (vendor)? A sub question is, would the purchaser have to pay additional stamp duty if registration is done after 31st March 2016 and stamp duty is hiked by Government..(note the purchaser has already paid stamp duty as of 23rd March 2016 at prevailing rate)
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1) your mother should not register flat in purchaser name without receipt of Rs 10 lakhs
2) there is no guarantee that purchase will make payment of balance amount
3) it is duty of purchaser to arrange for funds . even if stamp duty from 1/4/16 is hiked it is his problem
Hi
First assumption: i presume you do not know the credentials of the buyer. hence my view's are based on assumption that you do not know the credentials of the buyer.
1) Do not take such risks. I also understand the buyer predicament's( march 31, year end, stamp duty increase etc).
2) But the fact is that it is risky to do the registration and then await for payment.
3) Normally banks will issue Banker Cheques to the Seller at the time of registration only and banker's will collect the sale deed from the registrar office, once the registration is complete.
4) Also, ensure that the buyer pays the money in full at the time of registration only (no PDC's please).
5) it will be the buyer's responsibility to pay additional stamp duty.
Please tell the buyer that you are ready to do the registration the minute you receive your payment in DD rather than taking risks like registration first and payment later..
Hi, it is my kind advice to you, don't register the property until your mother receive the full amount.
2. After registration if the purchaser fail to pay the amount then your mother will be sufferer so better collect the money first and register the property.
1. How are the cheques blank when the amount and date has been mentioned thereon? Be that as it may, if a date has been mentioned on the cheque then your mother should present it to her banker. There ought to be a clear mention in the agreement as to how the cheque is to be presented. The agreed amount of earnest money should be paid before the execution of sale deed. Get the agreement vetted by a lawyer.
2. The buyer may have to pay additional stamp duty in accordance with the new rate prescribed by the govt.
My question is should my mother (vendor) go forward with the registration of her flat in the name of the purchaser before cheques worth Rs 10 lakhs are credited to her account? Would such registration compromise the legal interest of my mother (vendor)?
It is not advisable to register the property in the name of the purchaser before confirming the amount paid through undated cheque. There is no guarantee for the cheque amount especially once the registration is done. You can ask the purchaser to honor the payment once cheque is presented to her account in the bank and the next moment she shall be present in the registrar's office for registration of the sale deed. Hike in the stamp duty is not the responsibility of the vendor. If at all the buyer wants to avoid paying higher stamp duty, he can very well make the payment of consideration amount before 31st March and get the sale deed registered on his name.
A sub question is, would the purchaser have to pay additional stamp duty if registration is done after 31st March 2016 and stamp duty is hiked by Government..(note the purchaser has already paid stamp duty as of 23rd March 2016 at prevailing rate)
The stamp duty differs from one state to another across the country. The hike in the stamp duty in Maharashtra should be confirmed locally. The stamp duty already paid is for the sale agreement. The stamp duty on the balance of sale consideration amount shall be proportionate.
