Authenticity of gift deed when both parties are abroad
devarajbarera
(Querist) 05 March 2015
This query is : Resolved
Hello Sir,
Query 1: We are planning to buy plot at Karnataka. It is in the name of Mr.Rajesh and his daughter Shweta who reside at USA (names are changed). Since they can't come to India for registration, Shweta has given a gift deed to her father Rajesh and inturn Rajesh given a gift deed his blood brother Girish, who also resides at USA. Girish would come to India for registration. Two gift deeds are executed in sub-registrar's office at Karnataka without their physical presence. They had given a power of attorney to a property dealer from Gujarat to execute the gift deeds. This power of attorney is registered at Gujarat. Is it safe to buy the property from Girish? Are there any risks in this deal? What should we aware of?
Query 2: Since the plot is in a corner and big, two of us want to buy it and split. Can we split it into two separate plots while registration itself? What is the process?
Pls let us know if you need any additional information.
Thanks in advance for your responses.
Anirudh
(Expert) 05 March 2015
If I am in your position, I will not be buying such a property, in the circumstances and manner which you have stated.
devarajbarera
(Querist) 05 March 2015
Thanks Anirudh. Are there any more views?
Devajyoti Barman
(Expert) 06 March 2015
The POA upto Girsh was right and you could have bought from him. However since Girish has given it to builders, it would be safe to buy it only if Girosh joins the deed of purchase.
2. Yes, you can split the and and apply for separate survey numbers.
Dr J C Vashista
(Expert) 06 March 2015
I agree with experts advise, leave this and choose some other property.
Rajendra K Goyal
(Expert) 06 March 2015
Gift deed should have been registered before the registrar in whose jurisdiction property is situated.
POA can be executed before the official of the Indian Embassy and should be registered in India after adjudication.
In the present case all the documents need to be seen. Consult local lawyer.
You can split the Plot provided local law does not prohibit doing so.
ajay sethi
(Expert) 06 March 2015
dont purchase the property
devarajbarera
(Querist) 06 March 2015
Thanks for all the responses.
Just providing some additional clarifications:
@Devajyoti: Gift deed is given to Girish and Girish himself would come to India for registering it to buyer. POA is given to agent only to execute the Gift Deed as donee and doner both are located in USA. Agent with POA doesn't have rights to sell, its only to execute the Gift Deed. In that case is it ok?
@Anirudh, Vashista and Ajay: I also feel it is better to drop this deal. However property is very good, inside a gated community, safe, close to all important places, we are getting at good price, so I want to exhaust all possibilities before deciding. Thanks for your advises, I will consider them while decision making.
@Rajendra: Gift deed has been registered before the registrar where property is situated (at Bangalore), but the POA is registered at Gujarat.
I will check on the "POA can be executed before the official of the Indian Embassy and should be registered in India after adjudication".
I will also consult a local property lawyer before the decision making.
T. Kalaiselvan, Advocate
(Expert) 09 March 2015
What do you mean by gift deed given to Girish?, If gift deed was given to Girish, where was it executed?, unregistered gift deed is invalid and for registration o gift deed, both the donor and the donee need to be present in the registrar's office. Gift deed cannot be executed by POA agent. If the gift deed was registered at the place where the property is situated how come the donor and donee staying abroad and got it registered at Bangalore and once registered what is the need for its execution again?
The cloud of mystery is surrounded in it hence it is advisable to consult a local lawyer with all papers , take his opinion and then decide.
devarajbarera
(Querist) 09 March 2015
Thanks Kalaiselvan. I am told gift deed can be registered at India even when doner and donee are not present.
Rajesh has given a gift deed of the Bangalore site to his brother Girish. Since both reside at USA, they sworn-in before an attorney at USA to make it legitimate.
POA agent has rights to register (execute) the Gift Deed (no rights to sell the property) at Bangalore. POA itself is registered in Gujarat. POA agent registered (executed) the Gift Deed at Bangalore without presence of doner and donee.
Now Girish became absolute owner of the property, khata, EC everything would be in his name. He will come to India to sell and register the property to the buyer.
Yes, I will consult a local lawyer.
kavksatyanarayana
(Expert) 09 March 2015
@ Author, follow the advise of experts Mr. Rajendra K Goyal and Mr. T.Kalaiselvan.
devarajbarera
(Querist) 12 March 2015
I am thinking to drop this deal.
Primary reason: I asked the Agent to handover all the original documents related to the plot after registration to me (like first sale deed from property developer to Rajesh, Gift deed1, POA, Gift deed2 etc). But Agent is not ready to give all the original documents of the plot. He says he will give only those papers which are legally required and can give notarized copy of others.
Why all the original documents are not being given to the plot buyer even after the registration? Once the site is sold, what is the use of those documents to the previous owner?
T. Kalaiselvan, Advocate
(Expert) 12 March 2015
Buying an immovable property be it a house or plot or flat is a big investment. If the invested money is of hard earning and losing it by wrong investment will be a great loss and hardship, it is always better not to proceed with such investment wherein there exists a doubtful situation, better to consult a local lawyer who is knowledgeable in the filed, get his opinion and if satisfied proceed or think of something else than this.
