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nisheet (consultant )     11 August 2011

Resale flat - urgent opinion needed

I am planning to buy a residential premise as a second sale property. The said flat was purchased by the current owner in dec 2010. He had a power of attorney to the said property and he has purchased it on a joint name with his wife. However, till date the society has not transferred the flat on his name and have not issued him a share certificate in his name. He says that the chairman and secretary had vested interests in the said flat and hence have not completed the transfer formalities although the society has already encashed the transfer fees.

The sale agreements and power of attorney seems to be ok and the registration fee is paid by him at the sub registrars office.

I intend to purchase this flat. However i want all documentation to be in place. But he is in a hurry to finish the deal. We have finalized the deal and i have paid him 50,000 Rs as earnest money and signed a MOU to that effect.

The society's AGM will be held on 15th Aug wherein he says that the transfer will be completed on his name.

He has not obtained a NOC from society for the same.

I want to know if i shud go into the deal before he procures his share certificate and whether it is mandatory for him to get the NOC from the society. Can the society trouble me if we complete the sale without the society's NOC.

Thanks.



Learning

 4 Replies

R.Ramachandran (Advocate)     11 August 2011

IF the flat is not in his name, and if the shares are not in his name, and if the Society does not give NOC to him, then it is not advisable for you to go in for buying that flat.  All the aforesaid things should be available before one can safely enter into a transaction.

saurabh (Partner)     11 August 2011

let us assume that the chariman and the secretary have vested interest. so how do you handle the situation. 

firstly be very sure that they have vested interest. this should not be a figment of your imagination. 

for example, a society residential area of jains can prevent or direct that the new owners do not eat meat in the premises. this kind of restrictions are legal and acceptable. 

So be sure what the restrictions are. and if the society members actually have genuine apprehensions or are just harassing you. 

secondly, please get the present owner (power of attorney holder) to write to the society to hold him as the owner. and then after this ask the society to register you as the owner. 

chances may be that you are in for a good fight. and maybe that you will have to litigate this matter. the worst case scenario may be that you will have to file a suit for declaration against the society. 

do enter into this, only after properly understanding that there are lot of costs and time involved. generally speaking a society cannot refuse to recognise a new owner of the property. but then there are exceptions. make sure that you do not fall under any of the exceptions. 

regards

 

Saurabh

+91 987 111 7538

mail@kumarsaurabh.net

nisheet (consultant )     11 August 2011

Hi.. Thank you Mr. Ramchandran & Mr. Saurabh for your advice. Another question is : In case the flat gets transferrred in his name during this AGM and if he is to recieve the share certificate .. say after 15 days from the society.. Is it advisable to wait till he gets it or can the registration be done before that also??

Deepak Kumar (Advocate)     15 June 2018

Sir,

You should till flat is not transfered in his name. Once the name is transfered Than you should proceed.

 


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