CA.Yeshwant Mehta (President) (147 Points)
03 May 2017Whether Deed of Cancellation prepared to cancel the original Sale Deed executed in 1989 and registered with sub-registrar in 1995. Both the parties are relatives.
(i) can be treated as valid & legal ?
(ii) stamp duty & registration fee payable ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177695 Points)
Replied 03 May 2017
" (i) can be treated as valid & legal ? "
Depends upon reason of cancellation.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177695 Points)
Replied 03 May 2017
"to cancel the original Sale Deed......"
Is it Sale Deed or Sale Agreement?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177695 Points)
Replied 03 May 2017
If it be the nature of agreement, where in clause of any complience on any of the parties remains, it would be easy to cancel the same. But if all the conditions are already fulfilled by both the parties, cancellation would be difficult to convey.
CA.Yeshwant Mehta
(President)
(147 Points)
Replied 03 May 2017
Non-payment of consideration amount would not be sufficient ground for cancellation plus physical possession was not given ?
Is registartion manadatory ? or mere paper ads by both parties would be enough ?
what is the stamp duty & registration cost, if regisration is mandatory ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177695 Points)
Replied 03 May 2017
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"Non-payment of consideration amount would not be sufficient ground for cancellation plus physical possession was not given?" Such clauses are incorporated in Sale Agreement; not in Transfer/Sale DEED. Check for such clauses in the instrument!! Without registration, a permanent defect in TITLE of the property would be created, which would be difficult to solve in future!!! First of all, the cancellation doesn't seem to be applicable. But if possible, not much as compared to the present cost of the property. May be only registration charges. |
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CA.Yeshwant Mehta
(President)
(147 Points)
Replied 10 May 2017
"what is the stamp duty & registration cost, if regisration is mandatory?"
First of all, the cancellation doesn't seem to be applicable. But if possible, not much as compared to the present cost of the property. May be only registration charges.
On checking with the sub-registrar office stamp duty will be @ 5% on maket value minus 40% rebate for old building plus 30,000/ registration fee on cancellation deed. This amounts to the same as registering of a re-conveyance agreement. Rediculous, How can we convience the regisrar that the applicable rate of stamp duty on deed of cancellation is nominal amount and not a 5%, please advise. Any citation available ? Thanks.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177695 Points)
Replied 10 May 2017
"This amounts to the same as registering of a re-conveyance agreement. "
That itself confirms that the cancellation is not possible.........................
It is to be conveyed as fresh transfer.................... and liability of capital gains....................
CAN"T AVOID ALL THESE, unless you have proper ground of cancellation from the first transfer instrument of 1989!!
CA.Yeshwant Mehta
(President)
(147 Points)
Replied 18 December 2018
Dhirajlal
If, Both the original executant mutually consent to execute the Deed of Cancellation ? What is the legality of this transaction & regstration rqeuirement ? In fact they have already executed the Deed of Cancellation with mutual consent but wants to know further procedure. Please advise.Thanks
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177695 Points)
Replied 18 December 2018
Well, such trend is not uncommon, having strong reason of non-payment, and having time barred clause incorporated in original agreement.
Both being relatives, executing indemnity bond by purchaser alongwith notorized cancellation deed would safeguard the interest of seller.
Get title certificate from an advocate, based on search and paper notice.
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