Stamp Duty
Querist :
Anonymous
(Querist) 18 April 2010
This query is : Resolved
My brother & I inherited a flat in a housing society several years ago. Though the share certificate was transfered in our favour, we did not find the need and necessity of registering the same.
I am now planning buying out my brother's 50% share, and for which I seek certain clarifications, as under:
1. Before proceeding with the sale, is there a need to have the flat registered in the name of my brother and myself
2. Upon executing the agreement of sale, the stamp duty should be computed on just 50% of the house value?
3. Is there a chance of escaping the stamp duty, since I am a joint owner, and by virtue of this sale I am only striking of the name of my brother?
4. Any ideas on how this stamp duty hit can be minimised.
Would appreciate your views.
Raj Kumar Makkad
(Expert) 19 April 2010
1. Definitely.
2. yes but why to get it registered rather it is better to have a family settlement in th court without paying any stamp duty.
3 & 4. I have already replied in serial no. 2 to get a family settlement and get it as a civil court decree.
Engage a local lawyer and follow his instructions.
Uma parameswaran
(Expert) 19 April 2010
First registered flat in the name of you 2 brothers and tell your brother to execute a release deed in favour of you.
Querist :
Anonymous
(Querist) 20 April 2010
Raj,
If I were to opt for a family settlement, I would not get a Housing Loan for the same. HDFC, for instance, insists on a sale agreement.
Uma,
Could you elaborate on the release deed? I mean, is it not to be backed by consideration? Is it different from a Sale? And can I avail a Housing Loan on the basis of such a document?
Thanks to both of you.
