Bharath kumar (Consultant) 31 October 2014

Legal status of plot - what next ?

Hi Sir/Madam,

My mother (party Y) bought a Revenue site on date 11/7/1985 through a GPA sale deed through a owner (party X) who had a self acquired property from the year 1952. He has clearly mentioned in the titles that their property can be developed, sold or leased according to the wish of party Y and there shall be no any of the legal hairs who will have any rights over the property whatsoever and party Y shall be the absolute owner.

Subsequently after 12 yrs ie date 8/9/1997 there will be a sale deed executed to party Z(son of party Y) and registered . party Z has duly filled all the tax payments (from BBMP limits since 1995), got the khatha in his name, paid the developmental fees, got the Khatha A and the PID no., and all the tax upto date. Its been over 17 years and he is enjoying the property without any claims and worries whatsoever.

Now party Z being the absolute owner is planning to do a Joint Development (construction of 12 to 15 flats) with a builder on some agreeable sharing basis.

1. Is the documents that I have sufficient for me to enter into a legal agreement with the builder.

2.The builder might or might not take loan for the building purpose, but IF in case the JV begins and it has to be sold to customers after completion of construction of flats; will the customers get the home loans easily (a) based on the documents available (b) is there any in-sufficiency for the end customer to avail home loan ?

3. Now I want to know if it all Loans will be granted for construction purpose for the builder, ( should party Z also take the loan in his name and share the load along with builder).

Please also mention any other relevant details if i have missed out in the queries.

Thanks

Bharath Kumar

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5 Replies

Bharath kumar (Consultant) 01 November 2014

Also I need to add to the above matter. when the plot was registered in 1997, the registration was done directly by party Y to party Z in the sub registrar office and there was no involvement of party X in this transaction.

In fact the real front ending party who sold the property (on behalf of party x in 1985) was also a witness to the sale deed executed during 1997.

Please comment

M V Gupta (Advocate) 03 November 2014

Based on what u have stated documents dt. 11/07/85 and 08/09/97 are perfectly valid and binding on all concerned. As regards the proposal to enter into a Jt venture agreement for development of the land and construct flats and sale of the same, u may as partner in the Jt Venture u have to share the cost of construction and other expenses; also share losses on sale if any. If profits are earned u will be entitled to share the same in agreed proportion. Get the Jt Venture document drafted by an experienced Lawyer with proper stamp duty paid on it. As regards awailing housing loans by the prospective purchasers, there should not any legal problem. You will have to provide necessary title clearence certificate and other documents as required by the credit agency.

T. Kalaiselvan, Advocate (Advocate) 05 November 2014

In the light of the information furnished, it appears that z has perfect title and marketable title to the property, hence the property can be given as collateral for the purpose of loan. In joint venture with the builder, all the conditions therein will take care of the situations that may arise or to be discussed. You may consult a good local lawyer who will be able to set right the things properly as per law.

Bharath kumar (Consultant) 05 November 2014

Thanks Mr.Gupta, Mr.Kalaisevan.........hope my supplementary query in which i mentioned that Party Y went into a Registration Sale deed to Party Z after 12yrs 2 months (1985-purchased ; 1997 - sold) of possession and did not involve party X in the sale deed transaction. Hope this is Sufficient and will suffice the need for Party Z to completely enjoy the property which he is possessing from 1997 to till date.

M V Gupta (Advocate) 06 November 2014

No need to involve X in the sale deed executed by Party Y in 1997 as party Y had a validly purchased the property under a regd sale deed. Pl confirm underlined portion.