Land ownership problem
Amit bhardwaj
(Querist) 03 September 2011
This query is : Resolved
Dear all,
Company director purchased a property in his own name by mistake. The sale deed is also registered in his own name. Kindly tell any way how he can change the name in registered sale deed.Is it possible? If no, tell me the other way. company is developer company. so if the property is in the name of individual, he has to make the development agreement to build a new building, so in this way the double expenses incurs by individual or as well as company.
ajay sethi
(Expert) 03 September 2011
this is no mistake . after great deal of deliberations property purchased in own name .consideration must have changed hands.
you can sell property to company if you want
Sailesh Kumar Shah
(Expert) 03 September 2011
Now, you have 2 options:
1. Make sale deed in favour of company.
2. Enter into Builder Agreement.
prabhakar singh
(Expert) 03 September 2011
HAVING GIVEN MY DUE CONSIDERATION TO YOUR STATEMENT"Company director purchased a property in his own name by mistake"
I AM TRYING TO MAKE ANOTHER POINT,IF IT CAN BE SHOWN WITHOUT DOUBT THAT CONSIDERATION HAS BEEN PASSED FROM COMPANY'S ACCOUNT THEN PERHAPS A RECTIFICATION DEED CAN CURE THE DEFECT PROVIDED SELLER IS READY TO JOIN THE RECTIFICATION.
Devajyoti Barman
(Expert) 03 September 2011
A Deed of Rectification may be executed where the same person would shown as representative of the Company.
Sailesh Kumar Shah
(Expert) 03 September 2011
Dear Amit Bhardwaj,
can you tell me that Stamp purchased in which name ?
Dr Anil Kumar Singh
(Expert) 03 September 2011
If the director of the company has purchased the property and the sale amount/consideration has change hands from Company's Account to the person from whom the property has been purchased , than only the rectification deed can be filed else if the consideration has been paid by director himself the sale/transfer deed in favour of company is the best option in my opinion
Advocate. Arunagiri
(Expert) 03 September 2011
The Director has to give a POA to the company. This will solve the problem.
It is the normal practice in smaller real estate companies, to buy the properties in the name of the employees and get POA for selling it.
Raj Kumar Makkad
(Expert) 03 September 2011
POA is not a permanent solution and after all director shall remain its owner and suppose he leaves the company or leaves this world, then?
So it is better either to get the declaration from civil court in collusive suit or to get registered Ratification Deed if rules of your State provide so.
M/s. Y-not legal services
(Expert) 04 September 2011
Almost all senior members gave their opinions. Am just adding my suggestion also. The director may execute the sale in favour of the company but without getting the mentioned consideration amount. Because already he used the company amount only. But who have to pay the stamp duty. Thats your choice.
prabhakar singh
(Expert) 04 September 2011
good !rightly thought Mr. who will pay the stamp duty??????
prabhakar singh
(Expert) 04 September 2011
POA!bankrupt idea sir ji ???????????
How can one appoint a company as POA when it is a juristic person without human brain and always need agents for its works.???????????????????????????/
prabhakar singh
(Expert) 04 September 2011
POA! bankrupt idea sir ji ???????????
How can one appoint a company as POA when it is a juristic person without human brain and always need agents for its works.???????????????????????????/
Amit bhardwaj
(Querist) 09 September 2011
Thanks to all experts to resolve my query.
Guest
(Expert) 09 September 2011
Dear Amit,
I wonder, if a director of a company would have committed such a serious mistake of registration of sale deed in his personal name when the cost of the property was paid from the company funds. In fact, not being an individual case, it is not a simple case of mistake, as it concerns to a corporate house. I have my own doubt that the property would have been registered in the name of the direcor intentionally with some ill motive. But to safeguard the interest of the company as well as its shareholders and other stakeholders it would be proper if the property is duly transferred in the name of the company at the same price by the director rather than entertaining the process of rectification deed at the cost of the director. This can also save him from any likely future allegation of misappropriation or laundering of money.
