Transfer of property before registration
Nirav Mehta
(Querist) 20 November 2013
This query is : Resolved
Dear Sir, I purchased a property from a builder and a Agreement of Sale (not registered) was executed. The same was done two and half years ago. I have paid 95% of the sale consideration to the builder. I now wish to sell the property for the same price which I had purchased (Due to some urgent requirement of funds). How to go ahead with the transaction and show the same in my books of accounts? The Sale Deed between the Builder and me is not yet executed the property is not yet registered on my name. Can I get the registration done on the name of the purchaser of my property? Please suggest the tax implications for me ?
Daksh
(Expert) 20 November 2013
Dear Nirav Mehta,
Practically there is no problem in so far your selling the property to the third party except of the fact that the next person who will buy the property from you have to explain the ownership chain and might have to pay the penalty (qua the Registration to Sub Registrar) on your behalf. Otherwise alternatively the builder can refund the consideration by mutually cancelling the Agreement to sale and the property can then devolve to the new buyer ( who intends to buy from you). Hope this clarifies
Thanks and best regards
Daksh
R.K Nanda
(Expert) 20 November 2013
consult tax lawyer.
Rajendra K Goyal
(Expert) 21 November 2013
The developer may enter fresh sale agreement after cancelling with you on your request.
Nirav Mehta
(Querist) 21 November 2013
I thank Mr. Daksh, Mr. R.K Nanda and Mr. Rajendra K.
In my case I do not wish to involve the builder and request him to refund my amount (reasons are well know in all circles). The sale of my property should be done without the involvement of the builder. The builder should only get the same registered to the PARTY I sell my property.
I would like to know can a MOU or Agreement of Sale between me and the interested Party be signed to come to an understanding. If yes what are the key points that have to be incorporated in the MOU or Agreement of Sale.
Thank you all in advance.
Rajendra K Goyal
(Expert) 21 November 2013
Not possible under the given facts till the builder agrees.
Nirav Mehta
(Querist) 21 November 2013
Sir, The builder as agreed for the registration of my property to another Party.
But I do not wish to involve the builder. I would like to take my Amount for the Other Party directly.
The builder has no objection to the same.
arunprakaash.m.
(Expert) 23 November 2013
Simple. Make Deed of assignement of your contract to the new purchaser
