Sale proceeds of jointly owned property
Rave Gerawal
(Querist) 02 February 2011
This query is : Resolved
Hi,
Property was purchased solely by funds of Person A and title was registered in names of Person A, his father & his mother.
Now the property is being sold. All 3 owners are alive and will be present at time of selling.
Can all proceeds from sale be taken only in name of Person A? Is that legal? Would the buyer need some for of authority letters from parents of Person A?
Appreciate a response. Thanks.
A V Vishal
(Expert) 02 February 2011
Can all proceeds from sale be taken only in name of Person A? Is that legal? Would the buyer need some for of authority letters from parents of Person A?
Yes, A can take the entire consideration, however suitable clause in the sale deed mentioning the fact is required to be incoporated in the sale deed. Since all the three would sign the sale deed as vendors it is sufficient and no other separate letter is required.
Raj Kumar Makkad
(Expert) 02 February 2011
There is no need to even mention in the sale-deed who actually owns land/property rather the execution of sale-deed which recites the payment of sale consideration is sufficient and it is the mutual understanding of buyers and sellers in whose hands to give sale amount.
Ashok Yadav
(Expert) 02 February 2011
Yes you can do it, but as advised by Mr. Vishal you should incorporate a paragraph in the sale deed that the sale proceed shall be taken in the name of only one person and another two sellers have no objection on the same. It will be better to avoid future problems which may arise on rainy days..
