Resale of flat through power of attorney to broker
Chandrika Subramaniyan
(Querist) 06 July 2011
This query is : Resolved
I would be grateful for an expert opinion and advice on following situation.
Background
I own a flat in Chennai and wanted to sell in last Aug 10. Tenant and his family of five, 2 Adults, 1 Adult daughter and two children , residing in there was keen to buy and said he would by middle of Jan 11.Has been postponing and buying time to register till date. A written notice through a lawyer on 23 Apr 11 stating a reason that I require flat for my own use…was given to tenant to vacate the flat by 31 May 11. Till date he has not vacated. He still says he would buy the flat….but has not. Tenant has been living in my flat throught rental agreement and renewals done till Jul 09. No renewal has been done after that. Tenant has also rented the flat opposite to mine, from its owner. That owner has also asked him to vacate orally about 3 months ago….but tenant has not vacated that flat till date. They have not filed any case or have taken any action legally as yet. Tenant has been regular with paying rents…to both myself and the other owner. A case is being filed on my behalf today in Chennai. By the way....no written agreement has been signed between my Tenant and I for the sale of flat All requests and communications have been done orally through myself and my lawyer.
Current situation
A real-estate broker has offered to buy the flat from me in all white for power of attorney and says he will later take care of vacating the tenant through another power of attorney to another agent or party who may be capable of re possessing the flat from tenant etc.
My question
1.Is the sale to broker through power of attorney wise to consider ….from Tax,legal angles and in saving time factor and mental hassles of court proceedings as this I understand could take a year or more? I have been very prompt tax payer and completely transparent as far as my fincncial situations with IT. And I intend filing LTCG on above should I decide to go through this route.
2.What are the Pluses and minus of going through above broker route ?
THank You
Sincerely
Chandrika
Guest
(Expert) 06 July 2011
An Agent cannot appoint another agent. Since, you have already filed a case for eviction, it is better to follow the suit.
If you are unable to attend to the court proceedings, it is advisable to appoint an Agent (a trust-worthy person) for the court proceedings purpose only (ie., without giving powers to sell the property).
(1) If you have a reliable person, GPA is a route to sell the property. But, the deal may not be transparent, for example, the Agent may fix the price to his advantage;
(2) Other than the above minus point, since you have already mentioned about the case being filed, broker route will be more complicated one.
Chandrika Subramaniyan
(Querist) 06 July 2011
Thnak You Mr. Sivasubramanian. If I fix the rate of sale and recieve the monies for the POA all in white and I proceed in full transparancy to IT filing ....and agent agrees and pays.....what more complications should I consider going forward ?
One negative point I can think of would be that at the time of property being registered in another buyers name through POA of Real estate agent, and if it is registered for higher value than what I recieve...then I become liable for addtional tax payment....other than this...I would be grateful if you can think of others.
I too am of the opinion that it is better to go through the litigation process ....but the uncertainity of the time taken through this proceedure makes me want to consider otherwise.
THank You
Chandrika
