Relation between sale agreement and property registration
Nalini
(Querist) 08 January 2013
This query is : Resolved
Hi,
Recently I have booked an apartment in Chennai. Initially the sale agreement was signed by myself and my mom as we have invested in this by selling one of my mom's property.
For the loan process the bank wants me to register it only in my name.
Now, can you please let me know if I can get the property registered in my name alone without changing the initial agreement which was signed?
Thanks in advance.
Thanks,
Nalini
ajay sethi
(Expert) 08 January 2013
inform the bank that since sale agreement has been made in name of your mother and your self registration cannot be done only in your name
Nalini
(Querist) 08 January 2013
Thanks Ajay.
And if the registration is done on both the names, can you please let me know if there is any process to change it to my name later?
This is because I'm facing a problem from builder to get a new sale agreement.
Thanks in advance.
ajay sethi
(Expert) 08 January 2013
once property is purchased in name of yourself and mother subseqently your mother can execute gft deed in your favour for her share . property would be regd in your name only
Nalini
(Querist) 08 January 2013
Thanks Again.
Can we go for both the registrations on the same day?
And can you please let me know whom should I contact to get this done.
ajay sethi
(Expert) 08 January 2013
contact a local lawyer . first get property regd in your and mother name . after a year or so get it transferred in your name
Nalini
(Querist) 08 January 2013
Okay. Thank you sir.
ajay sethi
(Expert) 08 January 2013
thanks for your appreication
Anirudh
(Expert) 08 January 2013
Dear Ms. Nalini,
You asked an innocuous query and got the answer. But there are several things to be taken care of.
1. The Agreement to sell is an intention to sell/buy.
2. If the agreement to sell is in favour of two persons (in this case yourself and your mom)naturally, the Sale Deed is also supposed to be in favour of both. Otherwise, one of the parties who has a right to buy the property and who has been left out in the Sale Deed, can sue the seller for having registered the property in favour of one person instead of both the persons!.
3.That is why, in the agreement to sell, there will be a clause which would say that the property has to be registered either in the name of the buyer or any of the nominees of the said buyer. Thus, in this case, even though your mother's name is appearing in the Agreement to sell, the property can be registered (as suggested by the Bank) in your name, (provided your mother agrees that to the same and absolves the seller of his obligation to register by including her name also).
4. As regards getting the registration done in both the names (yours and your mom's name) initially and then to get it transferred by your mother to your exclusive name - while this can be done, it will turn out to be a costly affair for you. This is for the reason, that if your mother has to gift her portion to you, then appropriate stamp duty needs to be paid (as though it is a conveyance/sale) on the value of the property at the time of such gift! Therefore, it would be highly advisable in your case (unless you yourself or your mother has any reservation in doing so) to get the property registered in one single name right at the beginning.
Devajyoti Barman
(Expert) 08 January 2013
If you add your mother as your co applicant , the bank can not put any resistance.
Nalini
(Querist) 09 January 2013
Hi Anirudh,
Can you just clarify if my understanding is correct?
"Now that agreement has been signed by both my mother and myself, i can get the property registered in my name provided my mother agrees to do so"
And if my understanding is correct can you please let me know if there is any process to follow to get this done.
Thanks much.
Anirudh
(Expert) 09 January 2013
When you say that "agreement has been signed by both my mother and myself" - am I to take that it was "Agreement to sell" and not ultimate "Sale Deed/Conveyance Deed".
If so, yes, you can ask your mother to give a letter to the vendor to register the entire property in your name. Accordingly the sale deed/conveyance deed would be properly worded and registered.
If already got the Conveyance/Sale Deed Registered in favour of both your mother and you, then only by making a gift deed your mother's share can be transferred in your favour. (As already informed this will involve payment of stamp duty!).
Raj Kumar Makkad
(Expert) 09 January 2013
Sale deed can be got registered in your name subject to NOC of your mother as there is no legal hurdle to do so.
