Exchange of flats in housing society
Paresh Vaidya
(Querist) 22 September 2014
This query is : Resolved
A and B have flats admeasuring same area in the same co-operative housing society in Mumbai City (townside). A’s flat is on 5th floor and B’s flat is on 3rd Floor. Now A and B are willing to exchange their flats. Since B will be shifting to upper floor, B has agreed to pay A some incremental amount.
My queries in this regard are as follows:
1. Whether there is a need to make two different sale deeds, i.e. (i) one for sale of flat on 3rd floor by B to A and (ii) another for sale of flat on 5th floor by A to B?
2. What will be the registration and stamp duty procedure? How much stamp duty will be payable on each agreement?
3. Let us say the selling price for 3rd floor flat is Rs 100 and for 5th floor flat is Rs 105. In such case, can the transaction be done only for net Rs 5, whereby B pays to A only net Rs 5?
4. Will there be any VAT / service tax on these transactions?
5. Whether any permission from
society is needed before entering into this transaction? Whether society will claim transfer fees from both A&B, even if it is merely an exchange of flats?
6. Simultaneous with exchange, A wants to add names of his six children, viz. three sons and three daughters (A doesn’t have living wife) to the new flat on 3rd floor. What will be the procedure to do so? Can so many names be added as co-owners?
Thanks in advance....
ajay sethi
(Expert) 22 September 2014
Deed of exchange has to be prepared duy stamped and regd
BAALASUBRAMANNYAMM
(Expert) 22 September 2014
1. Only simple way is to execute a Deed of Exchange.
2.Rest of the things will be followed as per the norms of the Society.
3.The party names as mentioned in the mother documents, can only be mentioned in the Deed of Exchange.
Anirudh
(Expert) 22 September 2014
Whenever Exchange has to take place, one single Deed is enough. However, the stamp duty is payable on the value of the property which is higher. The NET value will not work. You cannot add other names by way of exchange.
Paresh Vaidya
(Querist) 07 October 2014
Thanks for the responses as above. I have one related query- in the exchange deed, whether the Society should also be a party, in addition to the two parties exchanging their flats? (In other words, whether society should be a signatory to the exchange deed)?
Paresh Vaidya
(Querist) 17 October 2014
Thanks for the responses as above. I have one related query- in the exchange deed, whether the Society should also be a party, in addition to the two parties exchanging their flats? (In other words, whether society should be a signatory to the exchange deed)?
