Can builder correct sale deed for subsequent owners

Querist : Anonymous (Querist) 07 September 2024 This query is : Resolved
Dear sirs,

There was a builder who created apartment complex and sold 500 apartments to buyers.
After 30 years these apartments are resold multiple times and now there are 50% first allottes and other 50% are subsequent / second owners.

Now apartment owners have figured out that builder had considered only 40% of the total land while calculating the UDS for the individual apartment at the time of registration but payment was taken considering entire land UDS.
At present builder is ready to correct the UDS abd want to update remaining 60% of thre land in owners by correction deed.

I have following questions ( mainly first one) :
Please respond to question no 1 atleast if you can't reply to all of them

1. Can builder update current owners ( 2nd or subsequent owners) sale deed to add /update UDS Is it acceptable and lawful herd to skip the previous owner ? It will be challenging to bring all previous owners/legal heirs for correction for all the apartments. Is there a legal way/alternate to handle this situation?

2. Do owner need to pay stamp duty on current land rater for increase UDS? as the payment for entire apartment including share in 100% land wad taken by builder from the buyers bu5 he missed to include the correct UDS.

3. Some people want to go ahead and correct their sale deed as they are first owner. Will they get more compensation comapre to people (second/subsequent buyers) who are not able to correct their sale deed?

Thanks for your time and help in advance
Regards,

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Quick Summary

A builder sold apartments 30 years ago, but incorrectly calculated the Undivided Share (UDS) of land, using only 40% instead of the full 100%. Now, the builder is willing to correct this via a rectification deed. The key issue is whether subsequent owners can directly get their sale deeds updated with the builder, or if they must involve all previous owners, which is proving difficult. There's also a question about paying stamp duty on the increased UDS, and whether subsequent owners will receive less compensation if they cannot get their deeds corrected.

T. Kalaiselvan, Advocate (Expert) 07 September 2024
1. If the builder is ready and willing to execute a registered rectification deed rectifying the earlier error, then there is nothing wrong in it, he can do it to the people who are available and to those who are willing to cooperate with the builder in this regard. If the subsequent buyers want to establish their rights in the UDS, they may have to locate their vendors and get the rectifications done so that they are also benefited by this rectification deed in order to have their rights over the UDS.
2. The buyers have to bear the stamp duty charges as well as towards this reification deed.
3. The rectification deed will make the owners entitled for their eligible UDS

Querist : Anonymous (Querist) 07 September 2024
Thanks for your reply .
So, is it must for subsequent owners to get previous owner involved ? if subsequent owners go ahead and do rectification deed directly with builder (who is the current custodian of unregistered UDS) without involving previous owner will this correction deed legally acceptable in future ?
If not then money involved in correction deed that is in range of 3-4 lacs ( without involving previous owners ) will be wasted and also future resale may raise questions in property document verification due to this direct correction deed by any lawyer. Is this understanding correct ?

kavksatyanarayana (Expert) 07 September 2024
First, the builder shall execute a rectification deed for all the 1st owners. Then the 1st owners shall perform the rectification deed to the 2nd owners. Or the 2nd owner shall file a declaration suit in court.

Querist : Anonymous (Querist) 08 September 2024
Dear Kalaiselvan sir and kavksatyanarayan sir,
Can you please check the alternate suggested on following link that you confirmed as well where current owner can directly execute rectification deed with builder without the need of intermediate owners.

https://www.lawyersclubindia.com/forum/rectification-deed-117846.asp

In my case, can we also do same is it 100% valid and legally accepted ?

Thanks again. Waiting for your reply.
Regards

kavksatyanarayana (Expert) 08 September 2024
Without previous owners, a rectification deed can not be done.

T. Kalaiselvan, Advocate (Expert) 08 September 2024
The original vendor/builder can rectify the error in the document that he executed and the subsequent vendors need to execute similar rectification deeds to rectify the error so that the current owner is having the complete benefit of the property purchased by him/her in all the sense.

Querist : Anonymous (Querist) 08 September 2024
Sir,
I was looking for your clarification about advocate sunil gupta's last reply at following ink

https://www.lawyersclubindia.com/experts/can-builder-correct-sale-deed-for-subsequent-owners-762451.asp

Where he has provided the alternate and you agreed for the same.
Kalaiselvan sir / dear Sir
Can you please reconfirm if that reply is not applicable in this case ?

Once again thanks a lot for looking into this and replying.

Querist : Anonymous (Querist) 08 September 2024
Re-opening to bring your attention please see above message and website link of an old question about similar issue.

kavksatyanarayana (Expert) 08 September 2024

File a declaratory suit in court if the original owners are not traced.

Querist : Anonymous (Querist) 09 September 2024
Sir again I am asking for alternative as suggested here https://www.lawyersclubindia.com/experts/can-builder-correct-sale-deed-for-subsequent-owners-762451.asp
Is the suggestion in above link is not acceptable ?
Not sure if you were able to open and read the discussion in above link ..

kavksatyanarayana (Expert) 09 September 2024
Yes. I am not able to open and read the link.

Querist : Anonymous (Querist) 09 September 2024
https://www.lawyersclubindia.com/forum/rectification-deed-117846.asp

Sir please long press and select open option on above link or else open this in laptop. In mobile copy of above link is not workig.

I am copying the contents from the thread and lawyers reply below :

Question :
Ramki (personal) 11 March 2015 Hi Members thank you for the quick reply is it sufficient to get the rectification deed executed by the landlord and the last owner from whom we bought the site,or is it required for the previous owners as well for the rectification deed I mean Suppose A is land lord,A sold to B with incorrect Descriptttion in the schedule and B sold to C with the same mistake and C sold to D with the same mistake . From D my self and my friend bought the plots with the same mistake continued. now we realized the mistake, however we dont have a trace of B and C, but we know the landlord A,who made plots from his land and sold.,and we also know the last person who sold the plots to us which is D, so is it sufficient to just go with rectification deed with the A,D and ourselves or is it required to have B and C as well for rectification deed. Thank you for your support

Reply from Suneet Gupta :(www.vashiadvocates.com)
You can enter into the Rectification Deed directly with A. In this you can represent B, C and D as their successor-in-interest in the property, and execute the Rectification Deed on behalf of B, C, and D also. This will be the easiest option for you as you will not have to trace the old owners. Just make sure that you clearly mention the details of the intermediate sale deeds, i.e. A to B, B to C, C to D, and D to you in the Rectification Deed. Also right that you are the successor-in-interest of B, C, and D and are executing this Rectification Deed directly with A as such. You can send me a Private Message for additional help.

Reply from 1 Like T. Kalaiselvan, Advocate (Advocate) :

I fully agree with the opinion of learned advocate Mr. Suneet Gupta on the subject query. You may follow the suggested steps, take the help of a local lawyer if need be.

kavksatyanarayana (Expert) 09 September 2024
A shall execute a rectification deed in favour of B for the mistake, like B to C, C to D, and from D to you. If any of B, and C are not traced out, their legal heirs shall execute the rectification deed. Otherwise, D cannot rectify the mistake without getting the rectification from C or his legal heirs. So if the D is available, D must file a declaratory suit in court. After getting the declaratory orders, D can rectify the mistake in favour of you.

Querist : Anonymous (Querist) 09 September 2024
Okay so suggestion by Suneet Gupta
For direct rectification between A and CURRENT OWNER that was confirmed by Kalaiseveln sir as well is not legal ? As per above message as discussed in the link ?

kavksatyanarayana (Expert) 10 September 2024
Different opinions can be replied to here. As a retired SR/Supdt. in the Registration Department, my opinion is replied to.

Querist : Anonymous (Querist) 10 September 2024
Dear @Kalaiselvan Sir,
I am waiting for your reply as you have provided different contradicting opinions for exact same topic.

Want to know which one stands valid now the old one as per link / message thread I provided or the new one ?

I was expecting someone to say that previous opinion in the other link/ msg I copied above is valid or not valid anymore. .

T. Kalaiselvan, Advocate (Expert) 10 September 2024
Your question involves the practicality as well as the situation as per the prevailing circumstances.
As far as the rectification deed is concerned, if you had purchased the property directly from the builder then the registered rectification deed executed by builder in your favor rectifying the error will be sufficient. but if you had purchased the property from another buyer then the process of rectification deed will have to be applied to him and in turn he will execute a registered rectification deed in your favor which will complete the vivacious circle

Querist : Anonymous (Querist) 10 September 2024
Thanks a lot to both of you for replying multiple times . Sorry about that I wanted to be 100% sure before proceeding as it must be legal and also money should not be wasted as I need to pay stamp on current land rates

Now my last question to both of you regarding stamp.

Do I need to pay stamp on new land area being corrected as per new rate two times as we are rectifying the sale deed two times here ?
The stamp duty on current giveth land rate for increase UDS is around 3.5 lacs..
Do I need to pay this 3.5 lacs once for builder and first owner correction then again 3.5 lacs for first owner to my sale deed correction ? So total 7 lacs ? Kavksatyanarayan you may know about this ?

Querist : Anonymous (Querist) 10 September 2024
Re-opening last time for above question
Sorry again and many thanks.

kavksatyanarayana (Expert) 10 September 2024
If the extent of the site or plinth area is increased, the stamp duty and registration fee have to be levied only the difference in the Market Value (government value) prevailing at that time. That means if the area was mentioned as 35 square yards in uds and now it is 40 square yards, the value on the difference of 5 square yards should be adopted and stamp duty and registration fees are leviable on the difference value only.

Querist : Anonymous (Querist) 11 September 2024
Thank you for your reply that I understood but my question is :
Do we need to pay stamp duty on this difference of 5 square yard two times as in this case we need to execute two correction deed for same property ?

Assume stamp duty as per current market rate for 5 square yard is 50,000 INR.
Then do we need to pay this 50,000 once for rectification between builder and 1st owner and then again for rectification deed between 1st and 2nd owner ?

T. Kalaiselvan, Advocate (Expert) 11 September 2024
The applicable stamp duty may have to be paid for including additional property to the existing sale deed.

Querist : Anonymous (Querist) 11 September 2024
Sir,
Does that.mean amount need to be paid twice in above example ? Can you please clarify if amount need to be paid once or two times?

If once then against which correction deed First sale deed or second ?

kavksatyanarayana (Expert) 12 September 2024
Yes. Two times or three times, when a deed is rectified several times for unknown reasons, you have to pay the deficit stamp duty for every rectification.

Querist : Anonymous (Querist) 13 September 2024
If two times then i will need to pay 3.5x2 = 7lacs.
Also, in my case , Sr. Sub Registrar and builder are saying they can and are ready to register the rectification deed directly for present owners without involving the previous owner. If Sr. Sub Registrar is ready to rectify directly shall I go ahead ?

kavksatyanarayana (Expert) 13 September 2024
So you do what they said.

Querist : Anonymous (Querist) 13 September 2024
Sir is above reply is in frustration or genuine advice ? If you were in my place what will you do ?
Sorry for too many messages hope you understand. This is my last question .
Thanks to both of you for reading and replying

T. Kalaiselvan, Advocate (Expert) 13 September 2024
You may take a decision suitable to the prevailing circumstances, guidance and opinions can be rendered only to certain extent and not beyond that, you have to use your own prudence to take considered decision on all such further issues.
You can engage the services of an advocate and obtain a proper legal opinion and opinion to all such further developments.

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