Deed of declaration & agreement of sale
Balaji Bingi
(Querist) 26 June 2014
This query is : Resolved
7 Friends Come together and purchased a Plot, and they started constructing the Building, they have constructed apartment having 10 flats. Now they wanted to sale one flat
They have entered the deed of declaration as per Apartment ownership act Maharashtra on Rs.100 Stamp paper declaring the Land Value and Construction value separately , however they have paid Stamp duty on Land but construction value they have not paid the stamp duty.
Deed of Declaration had been entered in the Land records, later on they have rectified by putting the name of the 7 Persons and their wifes as owners
My Questions are as under
Whether deed of declaration is valid without payment of Stamp duty on construction value.
Whether the entries done on the basis of Deed of declaration are valid in land records
Who will be responsible for the entries without payment of Stamp duty.
in case of any evasion of Stamp duty who will be responsible
in case all the friends sold the flats and they absconded.
I wanted to purchase one of the flat in the above apartment, I had executed agreement of sale.by paying the appropriate duty.
now SBI Officer is of view that their is no Separation between the friends by paying the appropriate duty. the dividation had been not done by them.so the agreement entered by me is void
Please advise.
T. Kalaiselvan, Advocate
(Expert) 28 June 2014
You should clarify that if the deed of declaration was registered?, if it was registered, proper stamp duty would have been paid. In the absence of registered deed, the execution of sale deed in your favor will be under cloud. If there was no proper mutation of the property, who will sell whose property?, you may better consult a local advocate, take his opinion and then proceed, if his opinion is also doubtful, you may go for second opinion at the cost of getting defrauded or fishing in the troubled waters at a later stage.
Balaji Bingi
(Querist) 28 June 2014
Dear Sir
Thank you,
The deed of declaration had been registered the stamp duty for the Land had been paid and For Construction value it is not paid and clarified in deed of declaration that each individual had to get it registered at a later date.
T. Kalaiselvan, Advocate
(Expert) 28 June 2014
Thus, if the individual has not registered his share of flat, how will be able to execute the sale deed in your favor and how will you get it registered on your name? As suggested earlier, show all the papers to a local lawyer, take his opinion and hen decide about proceeding with the sale or not.
