Property sale agreement by trust
SUKHVIR HOUSING AGENCY
(Querist) 29 April 2014
This query is : Resolved
Respected All,
I am grateful, you have given your valuable feedback, please help for below mentioned situation as my friend wants to buy property from following person
Mr.Den Rama a NRI seller formed a Trust (DEN RAMA TRUST) in 8/2007 & made his brother as trustee he died in 12/2007.
Now Trust wants to sell the flat(Mumbai), and Trustee is also staying out of india so in 2013 he Came mumbai & Gave POA to mr.Shah(his friend)it was Registered at Joint Sub Registrar's Office Mumbai.
My question is how the agreement's Transferor portion (first paragraph) is to be drafted.
..........................................
I prepared like this :
MR. H. P. RAMA aged….. years (S/o Mr. …………………), an adult, Non Resident Indian having address at ....Mumbai.....,(through his Constituted Attorney Mr..Shah......), as a Trustee of DEN RAMA TRUST of ......Surat, Gujarat, hereinafter referred to as ‘THE VENDOR’ or ‘TRANSFEROR’ (which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include her heir, executor, administrator and assign) of the ONE PART
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1) Is there any TDS implication (amount to be deducted by the Buyer apart from new Law of 1% TDS deduction ?
2) Any other precautionary steps to be taken by the Buyer before entering into Sale Agreement.
your valuable feedback is highly appreciated
with regards
R.V.RAO
(Expert) 30 April 2014
approach a property advocate to study the issue and advise you and draft suitable and legally binding agreement of sale.
tds @1% by buyer is applicable on sale of property(value exceeding Rs50 lacs) by trust of nri.
capital gains tax is attracted on sale of property .
in case sale proceeds to be remitted out of india,approach your authorised dealer bank for suitable approvals of rbi.
Rajendra K Goyal
(Expert) 30 April 2014
Get the agreement duly drafted by an expert lawyer.
TDS, Capital gains tax, wold apply. Agree with the advise of expert RV RAO sir.
T. Kalaiselvan, Advocate
(Expert) 30 April 2014
As properly advised, it is always better to get such sensitive deeds drafted through a lawyer who is conversant with the subject and other formalities instead of experimenting yourself.
