Jigar Mange (CA) 19 March 2015

Sale agreement for single property with more than one party

I am planning to buy a property in Mumbai on bank finance from Mr. XYZ. Mr. XYZ has purchased the same from Mr. ABC in 2005. ABC has purchased the property from builder in 1999.

During title search, Bank has observed that particular property has been sold by ABC in 2004 to two different person and at different time i.e. property has been sold in mar 2005 to Mr. PQR and in Jun 2005 to Mr. XYZ. XYZ is occupying this property since 2005 and society records including share certificate is in the name of XYZ. Note that both agreements i.e. agreement between ABC & XYZ and agreement between ABC & PQR are registered with registrar office.

Please advise on following matters:

1) what are the steps to taken to check that whether agreement between ABC and PQR in Mar 2005 will override XYZ rights of ownership.

2) What steps do we take to resolve this title issues in terms of registration of two documents of same property

3)Whether issue can be resolved by entering into cancellation deed / no objection / consent letter between ABC and PQR.

Thanks & Regards,

Mahendra

9619393770

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2 Replies

Jayashree Hariharan (Advocate) 19 March 2015

As per law, whoever is the last purchaser holds the title. But the problem is maybe XYZ is not aware of the agreement with PQR.

There are two sale deeds, then better avoid this property. or alternatively just see if the sale of June 2005 to XYZ has the consenting witness signature of PQR. If it is there then you can go ahead, as PQR is aware of the subsequent sale.

If you see any document in both names, I would suggest you to let go of this property.

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Subash M R (Advocate) 20 March 2015

1) what are the steps to taken to check that whether agreement between ABC and PQR in Mar 2005 will override XYZ rights of ownership.

Ans:- During the time of execution of sale deed by ABC in favour of PQR on March 2005, XYZ remained as first agreement holder than that of agreement between ABC & PQR.

2) What steps do we take to resolve this title issues in terms of registration of two documents of same property

Ans:-Answer to this query is your last question.

3)Whether issue can be resolved by entering into cancellation deed / no objection / consent letter between ABC and PQR.

Ans:-Perfectly true.

Thanking you,