Sale of property on 10 year old agreement of transfer
Narendra Ashar
(Querist) 11 February 2015
This query is : Resolved
My son-in-law and daughter bought residential premises in Pune in 2004 by taking Bank Loan from a reputed bankers. Now the entire loan has been paid-up and we have received the bunch of Original Documents from bank as per the list of the documents submitted to bank while taking a loan from the bank.
These documents include (1) Builder+Promoter to Party of First Part as Purchaser in 1989. (2) Agreement of Transfer between Party of the First Part as Transferor and Second Part i.e. My Son-in-Law & my daughter as Transferees in 2004. This agreement is the then value of stamp duty paid and duly stamped & registered in SRO’s office, (3) Society’s ownership transfer letter, NOC, Share Certificate in my son-in-law & daughters names, etc.
Now, after 10 years, we want to sale this premises. However when our buyers approached their bankers for loan, their banker’s refused to give loan on the ground that Agreement of Transfer of 2004 between First Part & Second Part is not a valid document for loan and Bankers are asking for Sale Deed.
Unknowingly in 2004, sale deed was not made between Transferor and my son-in-law. But I am surprised when my son-in-law was granted loan from his bankers in 2004 on Agreement of Transfer, why not current(2015) buyers’ bankers refused to grant loan.
If bankers insist for Sale Deed, how can I get sale deed for transaction done in 2004 on Agreement of Transfer, which is stamp-duty paid and registered in SRO’s office
kavksatyanarayana
(Expert) 11 February 2015
@AUTHOR THE SALE DEED BETWEEN THE BUILDER/OWNER AND YOUR SON-IN-LAW WAS NOT DONE AND ONLY SALE AGREEMENT WAS REGISTERED IN REGISTRAR OFFICE. THE BANK AUTHORITIES SANCTIONED THE LOAN TO CONSTRUCT THE BUILDING. BUT NOW THE CONSTRUCTION WAS DONE AND THEY ARE GOING TO SELL IT. SO THE BANK AUTHORITIES ARE ASKING FOR THE SALE DEED. NOW THE PARTIES IN THE AGREEMENT DEED MAY EXECUTE SALE DEED. BUT THE STAMP DUTY PAID ON AGREEMENT BE DEDUCTED OR NOT DEPEND ON THE INSTRUCTIONS ISSUED IN YOUR STATE.
Narendra Ashar
(Querist) 12 February 2015
Mr.kavksatyanarayana,
please note the time period as this building was constructed and completed in 1988 and Party of First Part i.e A was FIRST owner of the premises from 1989 to 2004. In 2004 the party of the first part i.e A was a seller (transferor) and my son-in-law & Daughter were SECOND owners i.e. Transferees and took a bank loan to purchase this premises. It was a resale of the premise and loan was not for construction of building
Guest
(Expert) 12 February 2015
Dear Narendra Ashar,
Unknowingly or knowingly in 2004, sale deed was not made between Transferor and my son-in-law, mere agreement has no value without a registered sale deed with a title of ownership of your son-in-law.
Your surprise is quite valid as how your son-in-law was granted loan by his bankers in 2004 on Agreement of Transfer, as any one cannot be expected to know all the formalities and complicated legal requirements about a transaction for a property. But that query can't be answered without the information, whether the residential premises was purchased from a builder and whether the agreement was a tripartite agreement amongst your son-in-law, builder and the bank, and whether the amount was paid directly through a cheque in the name of the builder by the bank through your son-in-law or in his own name?
Anyway, when your son-in-law has paid full amount of the residential premises, he is entitled to get the sale deed signed from the seller and get registered with the registrar by paying the amount of applicable stamp duty of the state.
About your question, "why not current(2015) buyers’ bankers refused to grant loan," the agreement can be between your son-in-law and the builder, but without compliance of the agreement to convert that in to a regular sale deed to get a clear title in the name of your son-in-law. So, unless that residential premises is not got registered with the clear title of ownership of your son-in-law, he won't be able to sell that and no bank would be able to give loan to any other party merely on the agreement to sell by the builder to your son-in-law.
ajay sethi
(Expert) 12 February 2015
bank is absolutely correct . registered sale deed is necessary to confer legal title of property in name of son inlaw and daughter
Rajendra K Goyal
(Expert) 12 February 2015
Bank is right in refusing the loan as your Son / daughter in Law has no title papers of the flat in their favor. These have to be registered first in their favor.
Narendra Ashar
(Querist) 12 February 2015
Hello Mr. PS Dingra,
I am also surprised how bank granted loan in 2004 to my son-in-law.However please note that this agreement was not a tripartite agreement between my son-in-law, builder and the bank. First sale-deed was done in 1989 between builder and Party of First Part as a buyer i.e Mr. A. Mr. A was a first buyer as owner of the society from 1989 to 2004. The society’s share certificate was in Mr. A’s name as First Owner of the premises. And remained as owner till 2004.
Then in 2004 Mr. A sold this premises to my son-in-low by an agreement of transfer. This agreement is registered in SRO’s office, duly registered and stamp duty paid at the rate prevailing at the time of registration in 2004. The bankers paid full amount (of agreement-price) directly to Mr. A the First Owner, and not to the builders. The Builder was not involved in this transaction as Builder had already sold the premises in 1989 to Mr.A - The First Owner.The Society has transferred the premises in the names of son-in-law and my daughter as joint owners, and their names are written and mentioned on reverse of Society’s Share Certificate as Owners of the subject premises. Therefore please again note that the agreement was not between Builder & my Son-in-Law, but between First Owner Mr. A. And my son-in-law only.
Besides this premises is in Pune Cantonment Board area, and in the records of PCB the ownership is in the joint names of my son-in-law and my daughter. The property tax bill is raised by PCB in their names. This property tax is paid regularly to PCB from 2004 onward till this date i.e. Unto year 2014-2015. Also, in the records of SRO’s Office the premises is registered in the names of my son-in-law and my daughter as per the Agreement of 2004. This indicates that it is the registered clear title of ownership in the names of my son-in-law & my daughter. Then why he can not sell this property.
However in extreme case of “SALE DEED”, how can we obtain, prepare and register a new Sale Deed after 10 years
on the basis o Agreement done and registered in 2004. For making fresh SD we require to contact the First Owner i.e. Mr. A. And if Mr. A is not traceable or he denies to co-operate, then what to do? And if in any case, if we have to make this deed and register it we may again have to pay stamp duty, which has already been paid in 2004.
So what is the alternative?
Narendra Ashar
(Querist) 13 February 2015
Hallo All eperts
please note that this query is not yet resolved.
Please give me some reliable and effectie solution
prabhakar singh
(Expert) 13 February 2015
An agreement to sale is understood to be an agreement simpliciter where by an existing owner agrees to sale the property to his prospective buyer,it may be entered into even coupled with possession handed over to
prospective buyer,yet legally it does NOT passes on TITLE of property,therefore it is not marketable.
You have only possessory title which you van protect against your seller amd strangers.
Only this much is your legal right.
Guest
(Expert) 13 February 2015
Mr. Narendra Ashar,
Your son-in-law/ daughter must have got the sale deed also and would also have handed over to the bank some time later after agreement. Otherwise, the banking system is not so loose that they could be expected to forget not to acquire title deed before making payment. If the concerned person would have forgotten, their manager, one or th other inspecting authority or the internal audit must have pointed out about wanting sale deed consequent of which they must have asked your son-in-law to deposit the deed.
So, if not returned, the sale deed must have been in the custody of the banker, rather in safe custody in their locker, which they would have forgotten to return along with other documents. So, inquire from them for returnof the same.
T. Kalaiselvan, Advocate
(Expert) 15 February 2015
I fully agree with the views and opinions of expert Mr. Dhingra on the subject query and subsequent posts by the author on the query. The author should understand one thing that law is equal for all, you cannot question the same when it has been deviated at convenience at early stage by some hook or other method. Also, the registered sale deed, without which the title to the property will not be confirmed to the possessor, is a vital document despite all other supportive documents, like tax paid receipts etc. Thus, as suggested you may request the bankers to make discreet search to trace the title deed document if available with them or search for the original vendor and get your sale deed executed afresh following the requisite formalities.
