Registering land in kerala to foregin natonal
Querist :
Anonymous
(Querist) 02 December 2011
This query is : Resolved
Request:
Please advise me on points 8-17 below. I am looking for *honest* advice based on Indian law. Your advice will be greatly appreciated.
My background:
French National
Director of a tour company registered in Kerala.
Case history:
1. In 2009 I started proceedings to purchase 60 cents of farm land and house in Kollam district.
2. The contracts were signed by both parties, the money was given as cash by my agents to the seller, and the deeds and keys were handed over to my agents by the seller.
3. At the land registry office, the officer refused to register the land and property in my name – because of my foreign nationality.
4. I took up residence at the property and have been living here for over 2 years.
Current Situation:
5. I currently live at the property. I have made significant investments in upgrading the house and land.
6. Now given the lapse in time, I am aware that the original contacts are now terminated.
7. The property is still registered with the seller. The seller has continued to pay the land and house tax (as it is still registered in their name).
Advice required:
8. Legally, does the seller still own the house? (I have paid the seller and I have lived at the property with the knowledge of the seller for the last 2 years. But the property is still registered in the sellers name and the seller pays the land/house tax.)
9. Can I legally register the property in my name or in my company’s name (registered in India) with me as it’s director?
10. Can this property only be registered to an Indian national?
11. Can the sellers ask for more money now to draw up new contracts (in my or another Indian national name)? (Land prices have risen by 4-5 times in the past 2 years, since the start of the proceedings).
12. Can the seller legally ask me to leave the property? Will my original money be refunded? What about the investment I have already carried out to the property?
13. Can the seller sell the property to someone else? I have the original deeds – but can they get duplicates? What action can I take on this matter?
Options considered:
14. Do I do nothing? I can continue to stay at the property and use it as I see fit for as long as I like.
15. Do I pursue new contacts to register the property in my name (or an Indian partner’s name)?
16. Do I leave? Can I get the original money back that I paid to the seller? What about the investment I have carried out on the property? Will I need to compensate the seller as I have paid no rent or land tax in the last 2 years.
17. Do I negotiate a new lease agreement with the seller, so that the property remains in their name but I have use of the house and land. What are my options with this?
With kind regards
Sailesh Kumar Shah
(Expert) 03 December 2011
8.Yes
9.Company Name
10.yes
11.Depends upon terms and conditions settled between.
12.same as 11.
13.you can restrain.
14.not advisable
15.since you foreign national, you can't and in the name of partner is also not suggestible(if benami transactions).
16.Same as 11
17. you can execute lease agreement but not more than 5 years.
prabhakar singh
(Expert) 03 December 2011
You are adequately guided by Mr.Shah.
Querist :
Anonymous
(Querist) 03 December 2011
Mr Shah, Mr Singh, thank you for your responses.
I would be grateful if you could clarify: You suggest (9) that the property may be registered in my Company's name- even if I am a foregin director? Is this correct given (10) the property can only be registered to an Indian National? If so would a better option (15) be to pursue register it in my Company's name?
Also for 11, 12 there were no prior agreements with regards to these conditions regarding what happens if the property fails to be registered . The origial contracts we signed are no longer valid (expired 6 months after writing). In light of this informaton can you re-advise on 11 and 12?
Kind regards
prabhakar singh
(Expert) 06 December 2011
Replying to your latest post:
It is true that property can not be registered in your name but you can exercise
any of the following two options:
1]get it registered in name of your company if incorporated in India under indian companies Act.;or
2]you can also get it registered in name of your Indian partner but in that case it would be legally treated as his personal property and not of your company.The situation in this case would be same as to day not you but A is owner and then not you but B would be owner in place of A.
3]the original contract though void,money paid can be realized back within 03 years from the date of contract if seller refuses to pay.
4] As regards to refund of improvements cost it would be dependent on the terms of the contract already written or by extension oral contract made subsequently under witnessing of agent.
5]your prospective seller is still owner and your possession is defacto but you can not be forcibly evicted from property,a law suit would be necessary by seller or his any other buyer.
Querist :
Anonymous
(Querist) 06 December 2011
Thank you, again, Mr Singh, for your valuable response.
Mr Singh, Mr Shah, Mr Barman,
May I ask how you might advise the seller in this case? What options are available to the seller?
Your thoughts would be much appreciated.
With kind regards.
Querist :
Anonymous
(Querist) 12 December 2011
Thank you again for response.
The seller is now stating that they will only register the property if I pay a further amount to reflect today's market value.
In the last 2 years property prices have increased 5 fold in the area - as reflected my recent nearby sales.
This would mean that I pay again x4 what I paid originally. The seller argues that if I sold the property after registeration, I would aquire this amount or more.
How should I respond?
With kind regards.
