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Reg. freehold and mutation in l&do

(Querist) 17 March 2013 This query is : Resolved 
Sir,

The property is alloted by L&DO as Rehabilitation of Displaced Persons from East Pakistan. After the demise of the lessee in the year 1999 the property has not yet been mutated in the name of legal share holders. subsequently the shareholders had a legal fight and now want to settle the dispute by selling the property outright to a third party. However, they have not yet entered the procedure of either freehold or mutation but want to dispose the property to a third party.

i. Is is legally vaild to enter into an agreement with a third party before going through the process of Freehold or mutation and where the thrid party has promised to do all the legal process of freehold and mutation?

2. what legal problems can be faced by the legal shareholders in such a situation if the agreement and money transaction has been done and the freehold and mutation process is started with L&DO?

3. The legal share holders since do not want to relinquish their share to the other shareholder, and want to register the property in the name of the thrid party, then what sort of deed shall be entered upon by the legal share holders to safegaurd this interest?


4. The relinquishment Deed is made in the name of other legal share holder only, and can it be made to a third party also?
Raj Kumar Makkad (Expert) 18 March 2013
1. This is purely an illegal act on the part of the legal heirs of the lessee.

2. If the land becomes free hold then there shall not be any problem but if the same gets rejected then the appeal and a long litigation is the only way.

3. An agreement to sale followed by registered sale-deed.

4. No.
prabhakar singh (Expert) 18 March 2013
An agreement to sale with conditional clauses can validly be entered into even for a property yet not free hold.Only suitably worded clauses would be required.But NO DIRECT SALE DEED WOULD BE POSSIBLE before it gets free hold.Rest things are matter of mutuality.


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