A Kumar 15 March 2018

Huf apartment property sale by karta : things i as buyer need to be aware of

I am buying an apartment in a Housing society in Mumbai.

The Flat is registered in the name of a HUF .The Karta purchased it from Builder under HUF in 2009.

Now the Karta is selling the property to me(individual). Karta wants to send his younger brother with POA to sign the Sale Deed as Karta is very busy Investor. Karta has shared below documents copy :

1. Surviving Certificate copy from District Magistrate: It States that family has 3 surviving members : Karta, his younger Brother, Mother. Father(who created HUF) is died 20 years back. However, I think there are other members in his family -children/wife. 2. PAN of HUF as well as 3 Members. 3. HUF Account cancelled cheque. 4. Standard Property documents from builder - sale deed with Builder etc.

Experts, What precautions and HUF specific documents should I ask from Seller to go ahead with this deal?

a.Do I need Consent Letter & List from all members (legal heirs!) of family? Shoudl it be Notarised/Registered.

b.Do I need IT Returns for HUF accounts to prove anything?

c.Does the reason for selling need to be clearly defined in Sale Deed -as its HUF- like Welfare of Estate & Family members- do I need to add any proofs to sale deed?

d.Karta is a frequent International Traveller - any proofs required for proving his nationality? Like Passport copy etc. His PAN is valid.

e.My preference is that Karta should himself sign the sale deed. I spoke to Subregistrar who mentioned Karta can sign Sale Deed and fingerprint it (in his residence in Haryana) and only POA for Biometrics can be sent with Brother as an option if I am not very keen on Brother with POA signing the deal.

f. If there are Minors- how do I protect this sale against anyone opposing after 18 - 21 age.Should I insist on Guardianship Certificate.

g. Should I advertise in National or Local Paers of my intent to my said Property giving 5 days notice?

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3 Replies

A Kumar 15 March 2018

Experts, What precautions and HUF specific documents should I ask from Seller to go ahead with this deal?

A Kumar 15 March 2018

1) It can not be HUF property, if you think its HUF property then you can not buy it.

>> Are you implying any HUF property cannot be sold legally? Please elaborate.

2) Entered into sale agreement with POA under HUF is void.

>> It will be a registered POA with direct blood relation(Brother). Sale Deed will be registered and stamp duty paid. Why will it be void?

3) For your clarity 'Karta' is called 'Manager' with limited power.

>> Karta, as far as I know, can sell a immovable asset for the welfare of estate , distress, pious reasons. What do you imply bu limitation?Please elaborate.

4) No outsider can step into shoe of HUF property.
>> Same as first Question- why not? As long as its a registered Sale Deed, Stamp Duty paid, sold by Karta of HUF via transparent deal, where is the invalidity coming from?

Having said all this can you throw light on queries a to g.

A Kumar 16 March 2018

No intent to offend anyone.

I have a genuine need to know these details as I am in the process of doing due diligence on a property I have intent to buy that is currently owned by HUF.