spsk 11 March 2016

Land registration 9 years after payment made

Hi Experts, please help with my situation:

My father agreed to purchase some 9 plots of land for total 12 lacs from a friend in 2007. They made an agreement in regular paper that the friend would sell the said property and that he received the sum of money in cash.

However, my father never registered the land in his name hoping that he will find some buyer to whom the land can be transferred by his friend (thereby saving registration and stamp duty). The landowner is still a friend and will oblige to our requests, however, due to inherent risks I am pressing my father to register it now in our name.

Please advise what are our options regarding mentioning the payment in sale deed, especially since the guideline value of the property is now 66 lacs. Is mentioning cheque number in sale deed mandatory? Can we somewhere refer to the agreement made in 2007 as payment made?

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3 Replies

spsk 11 March 2016

Can some expert please help. In addition to above questions, do we have an option to register with just some token amount as sale amount?

Jatin Mittal (Corporate Lawyer) 30 March 2016

The agreement entered into in 2007 is of no importance for the registration. As the stamp duty implication is made as on the date of registration. Since the mimimum stamp duty that is payable has to be on the circle rate, there is no way you can save on the stamp duty and get the asset registered in your name. If you can tell me the state where the property is situated then i can tell you the stamp duty rates. Further, i would suggest, spend some money and get the property registered in your name to avoid any future hassles. For any further clarifications, mail me at mittaljets@gmail.com

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spsk 30 March 2016

Hi Mr. Mittal, thanks for replying. This land is in Pudukottai in Tamil Nadu. We are willing to pay the stamp duty + Registration fees at 8% (5.3 lakhs) to Register the land in our name. But my question is on how we show the consideration payment of 66lakhs to the registrar? As per my understanding, a cheque for 66lakhs has to mentioned and it has to clear, correct? Please advise.