Hug (A) 15 March 2010

Please Help! - Joint Property SOLD by Single Owner

Dear Law Gurus,

I (Mr. X) have recently purchased a Flat, in Joint First Name with my Mother (Mrs. Y) from a known person Mr. A who informed me that the Property, that I am about to

purchase, is in the name of his wife only that is Mrs. B.

He provided me the Xerox of all the documents, but I must confess honestly, that I did not bothered myself to read the contents properly. I contacted a Registration

Assistance Bond Writer, who asked me to write the Seller and Buyers names and address on a piece of paper, which I did and gave it to him. Alongwith this I also gave

him the initial Property Agreement entered into between the Builder and supposedly between Mrs. B ONLY.

I paid the Full Stamp Duty and Registration Fees. The Registration was completed based on a SALE DEED AGREEMENT where my Mother and I (Mrs. Y and Mr. X) are shown as

BUYERS and Mrs. B (ONLY) as SELLER.

After Registration I approached one of the Nationalised Bank for Home Loan and as you all might know, they took couple of weeks and didnt reverted till date. The due date of making the payment to seller was approaching and hence I personally arranged the money by borrowing (may be you can say begging) from Friends and Relatives. I PAID the FULL and FINAL Payment and got the ORIGINAL set of Documents from Mr. A. On getting the document I felt that I must read the important contents of the document (too Late I know) and I was SHOCKED to see that the said property was JOINTLY owned by Mrs. B and Mr. A.

In light of above, requesting you all to please help me with your suggestions on:

1. What type of additional document I should get from BOTH Mr. A and Mrs. B to get FULL and CLEAR TITLE to the said property?

2. Is there a way of attaching an ANNEXURE to the Agreement by NOT paying the Exorbitant Stamp Duty and Registration Fees? I am ok to bear nominal fees if any.

3. Is there a way of modifying the Original SALE AGREEMENT by NOT paying the Exorbitant Stamp Duty and Registration Fees? I am ok to bear nominal fees if any.

4. The Nationalised Bank (probably still sleeping) will get the Title checked and I am sure, their Legal Advisors will come up with some advise on what to do next. But I am getting restless now. What if their legal advisors are also sleeping and without seeing the contents they agree for the Loan. The question is NOT just for satisfying Loan-giving-Bank's requirements. Its more of avoiding any challenges in selling the property by me (with my Mother) in the future.

Last point, not related to above case: If one of the Joint Property holders dies, whether the other (or remaining) holders can claim FULL and CLEAR right to SELL the property?

Thanks

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6 Replies

V. VASUDEVAN (LEGAL COUNSEL) 15 March 2010

The essential fact as I understand from your note is that A& B are the joint-holders whereas only B has executed the sale deed in your favour. Does the sale deed states that B is executing the sale on A and B's behalf. If the parent documents are in the name of A&B, even the Registrar would NOT have accepted the sale deed executed by B alone, unless it was executed on behalf of both the holders, supported by duly executed POA by A in favour of B. Please clarify this points after re-checing

Vasudevan

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Hug (A) 15 March 2010

Thanks For your Reply Vasudevan.

1. Yes A and B (Wife of A) are Joint Holders. The Builders Agreement shows the Buyers as Mrs. B and Mr. A.

2. Yes as per the SALE AGREEMENT made by me (my Agent rather) its only Mrs. B as the SELLER.

3. Sale Deed is NOT stating anything with regard to Executing on behalf of A. As I said, we all missed to note the point that Mr.A was the owner. Surprisingly, Mr.A

also did not realised that in this property he is the joint owner alongwith his wife. He probably has various properties in his wife's name and he missed to take note

of this vital point. (Nevertheless, its foolish on my part too, because even I missed this vital part as a Buyer).

4. Your point of Registrar is really amusing me. The Registrar had infact ACCEPTED the Documents, SEALED it and REGISTERED it. I have received the Sealed Docs from

the Registrar. I went in further details and found that it is just NOT the Builder's Agreement that stands in the name of Mrs. B and Mr. A but also the Registration

Document where Mr. A is very well shown as a BUYER buying the Flat from Builder.

5. There is no Question / Mention of any Power of Attorney. As I said, we (everybody involved in transaction, A, B, X and Y and also the Registration Agent/Bond

Writer) have "missed" to note this important point and hence POA was never thought about.

The concern is what next must be done.

Please Advise.

Many Thanks Indeed.

V. VASUDEVAN (LEGAL COUNSEL) 15 March 2010

From your response, I gather that what happened is only an error and both parties were under bona fide belief that the property was held in a single name Mrs.B. The registrar also over looked this mistake. Under this circumstances, the situation is simple. Approach the Registrar Agent (both parties together), and ask for the procedure for rectification of the deed. There should not be any stamp duty and at the best some incidental expenses for getting the deed rectified.

vasudevan

Hug (A) 15 March 2010

Thanks for your revert.

As I understand, the Deed once executed can be corrected by approaching the authorities. I will speak to my Registration Agent about correcting the Sale Deed.

Lets assume hypothetically, if he says that Correcting an existing Deed is full of hassles etc. Then in that case, would you please recommend some alternate course of action.

Kindly advise.

Many Thanks.

PATRUNI SRINIVASA RAO (MAINTENANCE COORDINATOR) 15 March 2010

Dear Hug

Dont be panic for any problem there is solution, for your case as per Mr.Vasudevan approch registrer office

with the same document no. he will correct and add second seller name but your seller should cooperate and remember registrer also included in this mistake he will solve this problem immediately

Advise: your purchasing the property you should be very care full then others (document writer & registrer office)

Regards and all the best

P.Srinivasa Rao

Hug (A) 17 March 2010

Dear Mr. Rao,

Many Thanks for your revert / advise.

I will surely take care and be careful.

One Last Question, do you know how much would be the total expense of correcting this. The property is located in Kalyan and the Registration was done at KDMC (Kalyan Dombivali Municipal Corporation).

I contacted my Agent yesterday and he said that the cost would be minimum Rs.3000. It may go upto Rs.5000.

Please Advise Sir.