Buying lease hold property

This query is : Resolved 

24 January 2012

Dear -
I am planning to buy a property which is currently not freehold. This is a FLAT alloted by Dellhi Development Authority to "X" person from whom I am planning to buy. The allotte has, after allotment, included his spouse name by applying to DDA. He has all the original documents available and he wants to sell it without freehold as the wife and husband are separated and lives separately. They have only 1 son living with wife. Both of them are in mutual agreement to sell the property through a middle family member, whom I can trust blindly. My query is :

I have thought of doing follwoing :

- In 1 go, I will pay all the sale proceedings to him with following court registered documents by paying proper stamp duty :
- Sale Agreement with possession
- Will
- no dues certificate till date
- affidavit that they haven ot take any kind of loan, mortgagem secured or unsecured loan on suc property etc. etc
(if you can suggest more documents to be take, let me know please.)
- then after taking posession and starting living, immediately apply for freehold to DDA and get the conveance deed in my name.

- Is the above ok like from legal standpoint etc.?
- is there any other thing i should take care which documentation.
- can i make all documents in my name as primary and my wife name as secondary.

Please let me know.
Tks & regards
Deepak Malhotra


ajay sethi (Expert)
24 January 2012

why Gpa and will
ask him to produceoriginal agreement . ener propr agreement for sale . get agreement stamped an registered

ajay sethi (Expert)
24 January 2012

why GPA and will
ask him to produce original agreement . enter into proper agreement for sale . get agreement duly stamped an registered

24 January 2012

Mr Ajay - Tks a lot for reply. What do you mean by "original documents". Of course all the original documents of flats will be given and ofcourse i will enter with him into agreement which will be properly registed in court and i will pay stamp duty according to circle rate in that area (may be around Rs. 200,000/- or so). But is "SALE AGREEMENT" or "AGREEMENT TO SEEL" is differnt ? or you are referring to some other document like "SALE DEED" "CONVEYANCE DEE". IF yes, then these documents are still not there as he got the flat alloted directly from DDA and but I think he has orignial lease deed which was given by DDA with allotment .

Also, can you please suggest a draft copy of what agreement you are referring. I will be greatful to you. (can i have your number so that I can talk more precisely).

ajay sethi (Expert)
24 January 2012

sale agreement only . ask for original lease deed entered into wth DDA . what are terms and condions . is prior consent necessary of DDA ? contact a local lawyer in delhi . i am from mumbai .

24 January 2012

thank you so much sir.....tks a lot.

DEFENSE ADVOCATE.-firmaction@g (Expert)
25 January 2012

Whole DELHI area has such sort of transactions.

Your title is not clear only possession will be the benefit.

DDR people do some tricks to change the names of original allotte, that is the only solution.

25 January 2012

Dear JSDN - Tks for replying.
I cannot understand what is "DDR" probably you want to say "DDA".
Sir - What do you mean by "trick". Does that mean that if I buy this flat with "Agreemnt to Sell and Purchase" and then apply for freehold to DDA for getting "conveyance deed", is that wrong ? or is that "not permitted". There was a supreme court judgement on 12-oct-2011 that SA/GAP/WILL are not the proper document for confirming title but title can be clear only by "conveyance deed" or "sale deed". But actually, I understand that this is for unauthorized and "Kachi" colony where they just make Power of Attorney with Rs. 50/- stamp paper and transfer the plot/land. But in our case, we will give proper stamp duty to government.

Do you want to say that "DDA" do some trick or unauthorized thing and if we go in this way, even if DDA issue conveyance deed, that may not be good title. Sorry I was a bit confused with your message so gotta lot of queries,which I will reapply appreciate if you can answer. Tks alot.....

as far as the possession is concerned, I am getting the posession in my hand much before giving payment to the person who is getting the deal executed is quite genuine and I can definitely belive on him.

R.K Nanda (Expert)
23 July 2013

ur welcome.

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