Property title
Sashi Kumar
(Querist) 07 May 2013
This query is : Resolved
Hi Experts,
Can you please advice on the following:
We are three(3) friends who are buying a land to build a three story house and then sell it once it is constructed.
1.) How should we take title of the property.
under our three personal names or
under a partnership or
Private limited company or advice best option.
We want to be sure in case there is any dispute between us in future the project does not stop and we have option to buyout each other if there is a dispute.
Do we have to write a agreement and get it registered along with the title.
Please advice
Thanks
Devajyoti Barman
(Expert) 07 May 2013
It is better to buy the property under your individual names so transfer of share is more convenient by an individual than a partner of a partnership firm.
Anirudh
(Expert) 07 May 2013
Dear Mr. Sashi Kumar,
It will be foolish not to enter into a written agreement, which spells out all the terms very clearly.
Further more, it has income tax implications as well. Depending upon what kind of agreement that you enter into, it may turn out to be an Association of Persons (AOP), or Partnership etc. Therefore, you would definitely need professional advice.
ajay sethi
(Expert) 07 May 2013
contact a local lawyer . please check whether land is agricultural or non agricultural land . take 30 years search of property . form a partnership firm consisting of 3 partners . have firm registered . get agreement for purchase drafted by a local lawyer
