kamal (Creative) 17 September 2011

Partnership property fate?

Hi,

My question is regarding a property which is bought as a firm.

What is the status of the property, bought as a firm of a partnership, if one of the Partner dies?

I am interested in a property of a firm but one of partner is no more.

Looking at the Sale Agreement of the property, it seems only one partner of the Firm signed the papers while registering the documents and that partner is still alive and wants to sell the property.

How do I ensure that there would be no issues later on after one buys the property.

Thanks.

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3 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 17 September 2011

Partnership consists minimum two members. If one dies and only second is alive then partnership firm gets dissolved. It is better for you ro first go through the relevant terms and conditions of deed of partnership otherwise you shall have to face is serious consequences at laer stage as one partner of the firm unless specifically authorised in writing, cannot sell the properties of the firm alone and his signautre cannot bind the firm.

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Bharatkumar (ADVOCATE ) 17 September 2011

If any partner dies at that time his/her legal heir join in partnership firm. Please u read whole partnership and see this pera in deed.

kamal (Creative) 18 September 2011

Thanks for your replies. I forgot to mention that the partnership has been between the husband and wife. On Death of the Wife, Husband now wants to sell property which was once bought in the name of the firm.

On the Death of the partner, the firm ideally should become Proprietor-ship. Does it helps, to mention in the new sale agreement regarding the state of the firm which gives right to the current proprietor who is sole living partner now proprietor, right to make agreement.

Thanks