Sale of a residential plot to a third party
Querist :
Anonymous
(Querist) 12 November 2025
This query is : Resolved
I am Mr A and want a piece of advice from you which is related to property matters and taxes in India. I sold my piece of residential land to Mr B on 31 August 2025. I get a full payment of Rs 51 lakh from B. A sale agreement is signed between the parties. They have agreed to do the registration of property to be executed before 31 Match 26. But before proceeding with registration Deed, B sells it to Mr R without informing Mr A, and comes to Mr A and says he wants a bank loan and asks him to sign a new sale agreement to be submitted with Bank for the purpose of getting bank loan . Mr A cooperates with B and in good trust Mr A signs this sale agreement (a second time now) to assist Mr B for Bank loan. But Mr A fails to notice that the sale agreement was now actually between Mr A and Mr R, a new /third party. After a few days , one fine evening Mr A gets a surprise that Rs 20 Lac is deposited in his bank account. Mr A calls B and asks. Mr B informs that Mr A will get Rs 51 lakh again from Mr R and perhaps he will give the remaining Bank Loan amount to the seller's account of Mr A. When Mr A objects to this , Mr B says Mr R has already paid TDS on behalf of Mr A. Now Mr A gets confused and wants to confirm the property transaction concerns and tax matters, and to consult a chartered accountant to clarify the issue, so he stops Mr B. Mr A arranges a meeting with Mr B and scolds Mr B for not being transparent in the first place, and Mr B's act of not informing or seeking consent from Mr A to deposit money in A's account, thus keeping Mr A in dark. When they talk in A’s Chamber, which has CCTV recording. Now Mr B wants that Mr A will depost money in Mr A’s account which A will return this money to Mr B and Mr A to do registry of property to Mr R. Please explain how Mr A is affected legally and in liability of tax matters, particularly when there has been a tax deduction TDS in A’s , if he agrees and how Mr B and Mr get affected. What is the solution if A does not agree to this preposition? DateEvent
31 Aug 2025Mr A sells residential land to Mr B for ₹51 lakh, payment received in full. Sale agreement signed. Registration deferred till before 31 Mar 2026.
LaterMr B sells the same property to Mr R without informing Mr A.
AfterwardMr B asks Mr A to sign “another agreement” allegedly for a bank loan. Mr A signs in good faith, unaware that it is an agreement between Mr A and Mr R.
A few days later₹20 lakh credited to Mr A’s bank account (from Mr R). Mr B says Mr R will pay the remaining 31 lakh leading to a total ₹51 lakh, and that TDS (1%) is already deducted in Mr A’s PAN.
NowMr A is shocked, calls a meeting, CCTV recorded. Mr B wants Mr A to return the ₹51 lakh to him and register the property to Mr R.
T. Kalaiselvan, Advocate
(Expert) 12 November 2025
You can consult an experienced lawyer in the local for personal advice by briefing the details with the data and documentary evidences and proceed as suggested.
kavksatyanarayana
(Expert) 12 November 2025
Without getting the sale deed from A, B cannot make any transfer, even an agreement to a third party. So show the relevant documents to a local lawyer and proceed as he advises.
Kishor Mehta
(Expert) 13 November 2025
The entire process is confusing and may turn out to be unlawful. Consult a practicing lawyer in your own interest.
P. Venu
(Expert) 19 November 2025
The agreements needs to be perused and issues discussed before offering any meaningful suggestion.
