Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Property transaction help

Abhinav Jain (Manager) (93 Points)

16 October 2015

Hi, I have a query which I will be very much obliged if answered by experts on this site like many other questions have been. I am a broker and in the middle of an outright transaction. The house is owned by father and daughter in their names in no specific ratio. They want the buyer to pay the full and final consideration of 42 lacs to just the fathers hdfc bank account. From the buyers pojnt of view is this OK to do? Will it cause any future claim problems? Any problem related IT?

Reply
Follow
Share

4 Replies

shivaji prasad bhimavarapu (CHARTERED ACCOUNTANT) (2391 Points)
Replied 16 October 2015

When the property is jointly owned without mentioning shares of joint owners, it is deemed to be equal share. The registration deed of property has to be executed by both the owners in which the consideration and mode of payment is also mentioned. Hence though payment is made to the father bank account, daughter can not deny that she has not received consideration

Upgrade to CAclubindia Pro. Subscribe Now!

Abhinav Jain (Manager) (93 Points)
Replied 16 October 2015

Thanks for the reply, yes both daughter and father will sign and execute the agreement for sale, transfer forms, etc The buyer was only worried that 0 payment to daughter should not invalidate his purchase or leave it open for any future claims from daughter side

CA Neha Gupta (Managing Partner LNG & Associates) (1839 Points)
Replied 16 October 2015

As far as buyer is concerned,no problem as he is paying full consideration for sale transaction. Since no specific ratio is mentioned,it is assumed to be equal. It should be clearly stated in the Registration deed how the payment will be made to the parties. When the money is transferred to one party's bank account, the other party can't escape. Both father and daughter are parties to the sale deed.

RAHULSMITTAL (Partner, V Mittal & Co) (252 Points)
Replied 16 October 2015

For your mental security, as payment is usually done before registery date. You can ask the daughters to given the statement that tjey are directing the buyer to pay the sum of their share must be transfered to fathers account. This must be on a stamp paper of rs 500 and duly notarised.