Registration of sale deed
ABDUL RAZIQUE
(Querist) 04 March 2014
This query is : Resolved
Mr A is land lord,appoint Mr B to develop his vacant land and build a multistory building, Mr A execute power of attorney in the name of B to negotiate with intending purchaser, enter into agreement with purchaser, sign & collect the amount on behalf of Mr A and deposit the same amount in the account of A.
By an agreement of Mr A & B have ratio of share to sell the flat.as per agreement Mr A got share in 4th floor but as per POA Mr B enter into agreement of all flat of said building, collect the amount and deposit the same in account of Mr A.
My question is :
Mr B presentation as a developer or confirming party is necessary or law requirement at the time of execution of sale deed?
if Mr B is absent at the time of execution and Mr A execute sale deed infavour of purchaser, can any legal intricate be arise?
Thanks in advance to our experts.
T. Kalaiselvan, Advocate
(Expert) 04 March 2014
Mr. B as a developer of confirming party is not required but as a POA, he can himself sell the property and execute the sale deed registration.
Mr. A being the owner, he can very well execute the sale deed in favor of the purchaser.
Guest
(Expert) 04 March 2014
Agreed with above Expert
Anirudh
(Expert) 04 March 2014
Dear Mr. Abdul,
One has to see the terms and conditions of the basic Agreement between A the landlord and B the Developer, before coming to any definite conclusion in regard to your query.
For instance, it is not clear whether the cost of construction would be borne by the land lord, or by the developer. If the cost of construction is borne by the developer, then depending upon the terms of the Agreement he may be the owner of the constructed superstructure, while the landlord would be owner of the land. Therefore, only from the terms of the contract it would be possible to know whether the landlord would be conveying only the undivided share in the land underneath, or the constructed flat as such. If the developer is the owner of the constructed superstructure then he has to convey the constructed portion (not as a confirming party, but as owner of the superstructure).
(Therefore terms of the Power of Attorney alone would not do.)
Further more, the issue will involve lot of tax implications - like income tax (capital gain), vat, service tax etc.
malipeddi jaggarao
(Expert) 04 March 2014
Normally the developer who is the power of attorney will execute the sale deed on behalf of A to the purchasers. Though A has got absolute right to sell the property, as agreement to share the sale proceeds is interse between the owner and the developer, in the interest of purchaser, it is always better if the developer executes the sale deed as POA of A, as he is the person who will be responsible for getting local permissions, providing amenities etc. The purchaser will be given a copy of Power of Attorney given by A to the developer, link documents of property.
ABDUL RAZIQUE
(Querist) 04 March 2014
Thanks to all my experts but one question is pending till now that what type of legal intricate be arise if the land owner as a share holder execute the sale deed and developer or POA holder not present at the time of execution of sale deed. Kinldy help in this point.
T. Kalaiselvan, Advocate
(Expert) 04 March 2014
To your latest query, as I have already suggested that since A being the owner, the absence of POA or developer at the time of registration of sale deed execution will not create any legal intricacy because of the fact that the owner himself is selling his property. If the developer/POA has any issue with the owner/A involving financial transactions, that has to be sorted out outside, that cannot make any impact legally to this issue.
ABDUL RAZIQUE
(Querist) 06 March 2014
Thanks T. Kalaielvan Sir, Now my confusion is clear.
