Selling property at less than litigation value
Querist :
Anonymous
(Querist) 20 May 2011
This query is : Resolved
Hi Experts,
I entered into a property litigation with a prospective buyer in which the consideration value was Rs 80 lacs. Now the litigation is complete and I'd like to sell the property to a childhood friend (who's also a distant relative) for a sum of Rs 45 lacs due to family reasons. Does the fact that under litigation, the value was Rs 80 lacs, make it compulsory for me to sell the property for atleast 80 lacs?
PALNITKAR V.V.
(Expert) 20 May 2011
not at all. you may sell it for any price you wish. but you may be required to offer explanation for that should any litigation arise regarding that land again
M/s. Y-not legal services
(Expert) 20 May 2011
Yes. Am agree with senior mr.palnitkar. Here you are the one and only responsible person for fix your sale price.
R.Ramachandran
(Expert) 20 May 2011
But for the purpose of registration and stamp duty, the rate fixed by the government for that area is higher than your consideration value, then the government rate will prevail. In other words, either the consideration agreed between the parties, or the rate fixed by the government whichever is higher will be adopted for the purpose of stamp duty and registration fee.
Querist :
Anonymous
(Querist) 20 May 2011
Thanks Everyone
Mr Ramachandran- Yes the value is much higher than the "circle rate" fixed by the government in Delhi. I was wondering if the value listed in court during the litigation obligated me to sell at atleast that value. The Rs 45 lacs value is higher than the circle rate (which is about Rs 26 lacs) but lesser than the Rs 80 lacs value that it was listed at during the case.
Surrender K Singal
(Expert) 20 May 2011
The circumstances responsible for higher valuation for litigation may be kept in record for any future explanation if at all required to be submitted for any enquiry which may generally be against some complaint by any one knowing such difference; Better not discuss with even your so-called friends
Advocate. Arunagiri
(Expert) 20 May 2011
the consideration amount is immaterial, the stamp duty is most important for registration. You have to pay the stamp duty for the guideline value or consideration price which ever is higher.
Guest
(Expert) 21 May 2011
Although when you have already won the case and it would be immaterial now for the urpose of the already closed case. Moreover the circle rate is also much less than the present consideration value. But if you like and is feasible in your own interest, for the safeside you can adopt alternative method like registration of 50% through sale deed and 50% by gift separately, but with some time gap.
malipeddi jaggarao
(Expert) 22 May 2011
I agree with Mr.Arunagiri. Your case is straight. Goahead with registration for Rs.45 lacs.
Querist :
Anonymous
(Querist) 22 May 2011
Thank you all!
