How safe is it to buy a pagdi property?? Which are the things one should look for before buying a pagdi property?? How to safeguard buyer while buying the pagdi property??
Asked 2 years ago in Property Law from Mumbai, Maharashtra
1) landlord should give his consent before you purchase the pagdi property
2) in the vent of any sale landlord will take around 33%of consideration of the property.
3) tenancy agreement in maharashtra needs to be registered
4) consult a local lawyer
It is not an appreciable to buy a pagdi property, because the ownership cannot be claimed in the pagdi property and the tenant can live in it so long he desires to live there and can sell the same as how he bought.
A fresh agreement is to be made with the landlord for this purpose.
Remember that a tenant is a tenant till the end and he cannot claim title or ownership in the pagdi property.
Under the pagdi system the new tenant would pay a Pagdi equalling a substantial percentage of the market value (85 to 90%) of the premises. This was divided between the old tenant and landlord mostly in the ratio of 65:35 landlord to tenant. In this manner, the landlord could make some money off his asset and also avoid paying taxes. The old tenant benefits, the new tenant rented a premises with low rent but by paying the Pagdi. The banks do not provide financial assistance for buying such a property. Involve a lawyer in the transaction from the inception to protect your rights.
1. It is to be understood that you can not own the title of the property which is actually rented property acquired by paying Pagdi,
2. You can take possession of the said pagdi property if the said transfer of possession by the original tenant has been permitted in the agreement entered in to by and between the owner and he tenant,
3. Buying a pagdi property is certainly not a safe proposition.