Dear Sir, Brief: My grandmom had purchased a property in her name located at Madhya pradesh. - She had entered into a Reg. Sale Agreement in the year 2007 for a total consideration of Rs.11 Lac and had paid advance of 1.1 Lac with the Agreement. She had paid stamp duty of 1% and Reg. Charge of 1% with the reg. Agreement. - It was agreed to pay the balance 9.9 Lac in 24 months and then proceed for Sale Deed Reg. We had paid the complete balance amount within one year of sale agreement by cheque and the same were encashed by the buyer. But we didnt collect any receipt or affidavit for balance payment. Cheques photo copies and bank statements are there with us. - Following which there was an demand raised on the above Agreement for complete duty as applicable on sale deed, due to non clarity on delivery of possession in the agreement and a paticular clause in the agreement as recited below, "And the vendors do hereby covenant with the purchaser that after receiving full consideration vendors shall at all times do and execute at the expenses of the purchaser all such further acts, deeds, things and assurance and may be reasonably required by the purchaser for better of further effectuating and assuring the conveyance hereby made or the title of the purchaser to the property hereby sold and conveyed." - Based on the above points the revenue department had given an order that the above Sale agreement be treated as DEEMED CONVEYANCE and stamp duty charged accordingly with penalty. On failure to deposit the same within 30 days the property may be auctioned for recovery of stamp duty. - Hence we decided to deposit the stamp duty with penalty and close the claim as the stamp duty paid could be adjusted while execution of Sale deed in my grandmothers name. We paid the balance 7% duty with penalty and closed the demand. But unfortunately before we could execute sale deed in my grandmother's name she demised in 2009. She had favoured the property in my fathers name through an un-reg. WILL. Queries: Now my queries are 1. How perfect is my fathers Title on the property based on the Reg. Sale Agreement which was Deemed as Conveyance (as some call it Deed of Agreement of Sale) and full stamp duty paid on the Agreement as Sale deed (8%) along with reg. Charges and also the consideration amount paid in full? 2. Will the deemed Conveyance deed (Reg. Sale Agreement of 2007) fulfill Section 54 & 55 of Transfer of Property Act and provide same title owner as that of Sale deed execution? 3. Under the above scenario is it required for my father to execute a Sale Deed from Seller? If yes, Can the stamp duty already paid in the Reg. Sale Agreement transaction (in my grand mothers name) be adjusted with Stamp duty payable during execution of Sale deed in my fathers name? Kindly provide clarity and Help. Thanks and Regards, Sidharath
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1) it is necessary to peruse agreement for sale executed by seller in your grand mother favour to advice
2) it is advisable to call upon seller to execute conveyance deed in your father favour
3) from facts stated by you it does appear that agreement for sale would operate as conveyance
1. The title never transferred to your grandmother as the sale deed was not executed in her favour. One cannot bequeath what he does not own. As a corollary thereto, your father has no title to the property.
2. Section 54&55 do not result in deemed conveyance of title to the buyer. The title passes only when the sale deed is executed by the owner in favour of the buyer.
3. Your father as the legal heir of his mother should file a suit for specific performance to compel him through judicial directions to execute the sale deed in his favour.
4. Stamp duty paid for the registration of the agreement cannot be set off against the stamp duty payable on the execution of sale deed.
Though the full sale consideration amount was paid since the registered sale agreement was not executed, in the eyes of law the deemed conveyance cannot be called as absolute title to the property.
The legal heirs of the deceased should get the property on their names jointly by the vendor executing a registered sale deed at the cost and expenses of the legal heirs. Since the grandmother was not having marketable title to the property, if others object then the will shall not be maintainable or valid
This may not appropriate to this case
Your father along with other legal heirs of the deceased can get the registered sale deed executed on joint names, the stamp duty already paid shall be deducted and the balance if any to be paid shall be paid.
Thank you for your guidance gentlemen. So what i have inferred from the above 3 replies is that A) Even though my grand mothers Registered Sale Agreement is considered as Deemed Conveyance by Revenue board and full stamp duty has been paid as per Sale deed duty (8%) & full consideration has been paid. Assuming my grand mother was still alive now she would'nt be called a title owner as per law until she executed a Sale deed in her name. Pls correct me if my assumption is wrong? B)The stamp duty already paid in my grandmoms sale agreement cannot be adjusted with the future Sale deed stamp duty payable in my fathers name. There is no provision in law to combine both transactions even though it is part of same transaction but both are different people. Correct? C)Say my father executes a fresh Sale deed in his name now and pays full stamp duty as per current circle rate. Can we apply for refund of additional stamp duty (7%) already paid in my grand moms registered sale agreement as that instrument was not deemed conveyance but a registered sale agreement only in law. Is there any provision in law for applying refund and what is the procedure for it in Madhya pradesh state. (Addtional Stamp duty was deposited 2 years back). Thanks in advance.
1) title of grandmother was defective . She does not have clear and marketable brother to property
2) if sale deed is executed in your father favour by seller stamp duty has to be paid on the transaction
3) for provisions of law on MP regarding stamp duty kindly contact a local lawyer . Stamp duty is state subject and varies from state to state
A Without a registered sale deed on her name She will not b considered to have marketable title to the property.
B Your understanding is right.
C Refund is not allowed under the said reasons. You may clarify the local ules about this from the registrar's office.