T.A. 12 May 2017

Stamp duty paid but registration not done for second owner

Hi,

I've bought a property in Mumbai of which I'm the fourth owner. The flow of possession was as below -

1983 - 1st owner - stamp duty paid, registration done
1990 - 2nd owner - stamp duty paid, registration not done
1999 - 3rd owner - stamp duty paid, registration done
2010 - 4th owner - stamp duty paid, registration done

While purchasing, I had done all the checks as well as gotten a home loan for it from HDFC but the documents had been shown to be clear. However, recently when I was trying to transfer my looan to SBI, I was made aware that the second owner might not have registered the document.

What I would like to know is -

1. What effect can this have ?
2. Will it pose an issue when I try to sell my property ?
3. What can I do to correct this ? I've no idea where the second owner is and whether he is alive or dead or anything.

Kindly advise.

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4 Replies

(Guest)

If you can find parties who signed un-registered document and they are ready to register then well and good.
If they ask from resonable consideration then pay and settle it.

Any how legal position will be

1) Due to Maharashtra Stamp Act provision since stamp duty is paid proper document can be admissibile as evidence in Hon. Court and hence legally all is right no need to worry

2) But such problem common may not accept and he may not purchase your flat if he has doubt over title

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T.A. 29 May 2017

Originally posted by : Madhu
	If you can find parties who signed un-registered document and they are ready to register then well and good. If they ask from resonable consideration then pay and settle it. Any how legal position will be 1) Due to Maharashtra Stamp Act provision since stamp duty is paid proper document can be admissibile as evidence in Hon. Court and hence legally all is right no need to worry 2) But such problem common may not accept and he may not purchase your flat if he has doubt over title

Hey Madhu,

Can you point out the relevant section in the Maharashtra Stamp Act? I searched online and the only relevant section that I could find contained this text -

"If a particular document is required to be registered under the Registration Act, 1908, and is not registered then as per Section 49 of the Registration Act, 1908, that document becomes inadmissible in the court of law. In other words, it loses its legal validity in the eyes of law i.e. the proper legal title will not pass on to the purchaser/ transferee i.e. the title will be defective if registration of the document is not done."