Land on lease and flats built on that - clarification
Querist :
Anonymous
(Querist) 27 October 2010
This query is : Resolved
If a particular piece of land is on 99 year lease with some municipal authority, and a builder builds flats on that property, I have following questions in this context:
1. How would the flat property be described in the sale-agreement - especially second,third sale - would it be leased property, or something else.
2. the Leased land as a whole, is whose property - i think it is the property of the society or association, and not the owner of each single flat owener - kindly clarify in detail
3. when the Flat is tranferred, is the sale deed for the flat only, or for the associated leased land also ?
4. For a title-report on the flat, does the title of the leased land also feature ?
R.Ramachandran
(Expert) 27 October 2010
Dear Anonymous,
Whenever the flat is sold, the document would say the flat with undivided land underneath. So the land portion is also gets covered.
Khaleel Ahmed Mohammed
(Expert) 27 October 2010
If it is a leased land, the title absolutely belongs to the land lord. The purchasers of ths such flats never get the ownership of the land. They are always tenants and liable to vacate on the expiry of the lease period.
Devajyoti Barman
(Expert) 27 October 2010
Here transfer deed would mention-assignment of lease as it is the leasehold interest which would be transferred not the whole right , title and interest on the property. The leasehold interest would include not only the flat but also the undivided proportionate share on the land beneath it.
Querist :
Anonymous
(Querist) 27 October 2010
I need clarification if the title/search report can omit the land ownership part when the report is for the flat
Querist :
Anonymous
(Querist) 27 October 2010
Does not the word leashold some how be interpreted that the property on the leasehold land is also on lease. How should the document clearly differentiate that the land is on lease, and the property built on top of that is not on lease - kindly clarify.
Devajyoti Barman
(Expert) 27 October 2010
Only the leasehold interest on land would be transferred but the flat would be transferred on its ownership.
Querist :
Anonymous
(Querist) 28 October 2010
Does the Search/Title report have to cover in a Flat the aspects of the leasehold land, or it can be silent on that ?
s.subramanian
(Expert) 29 October 2010
I agree with experts. The report has to cover the flat also. Otherwise it would be inchoate.
Querist :
Anonymous
(Querist) 29 October 2010
My question was I repeat - can the title report restrict itself on the FLAT alone, and be silent on the title of the leasehold land on which the FLAT was built.
