SuperNuvos (Own) 04 April 2016

Buying property during divorce

Hello Experts,

My friend wants to own a second house in Mumbai.

Few data points to consider:

1. He is undergoing divorce. He already jointly owns a house with his wife which is under dispute due to the ongoing case. However he continues to pay the EMI.

2. He wants to buy a house but doesn't want to take a risk of the same being claimed by his wife as streedhan. What are the options?

3. Can he buy solely in his mother's name and keep a POA with him to sell the house as and when required?

4. What are tax implications for my friend and his mother in above case?

5. For case in point#3, What are the risks if something happens to his mother (hope not) and she doesn't leaves behind a will? He has a younger brother who is married.

6. If he jointly owns the flat with mother? What are the tax implications for both my friend and his mother?

Please advise.

Reply Follow

4 Replies

(Guest)

1) Taking Flat on mother name is dangerous . After her death it will go to both son if will is not made and if will is made and if some one contest again problem.

2) If will is made in favour of one son that is person who is going to purchase flat , it should be registered with all family members witness , including your brother , his wife etc. , Medical fitness certificate etc.

3) Most imp. thing she can change will in fraction of second so previous will even perfect can create legal caos if new will is found or made and latter found and brought after her death

4) There is ongoing issue on Power of Attorney. , I read some where some supreme Court Judgement in 2011 have prohibited use of Power of Attorney for selling property , because rampart stamp duty avoidance etc.

5) Divorce proceedings are always messy , you never know where it can land . So I prefer not to talk on Marriage act .

(Guest)

Read article in India today about General Power of Attorney and 2011 Supreme court judgement

Basic understanding is ok for you

https://indiatoday.intoday.in/story/property-sale-through-gpa-not-valid/1/154711.html

Adv. Yogen Kakade (+ 91 9225510883) 04 April 2016

Rightly advised by madhu

SuperNuvos (Own) 05 April 2016

Hello Madhu,

Thanks for sharing India today article. In the article, there is a point that is mentioned:

1. In order to ensure that GPA continues to serve its purpose, the court said its judgment will not affect the validity of sale agreements and powers of attorney executed in genuine transactions. "For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance."

How do you interpret the above point? Is sale of property still possible through GPA?