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Rahul shri (Engineer)     27 October 2016

Property tax & electricity connection for my new flat - reg


I own a new residential flat in chennai from a rated community which is still under possession by Nov2016 & i have executed the sale deed on 2014. Meanwhile i want to sell the property & the buyer has raised the below concerns while making the sale agreement regarding property tax & electricy connection

1. Buyer wants the property to be assessed up to date and propety tax to be should be named in my name only - As the property is still under possession how can i assess the property tax now. As per the builder the property tax shall be provided intially in builders name only. Later on i have to change it to my name in corporation office by showing the necessary proof (sale ded & EC Documents). Is there any way buyer can directly apply for his name from builder name. What is to be done for that. please suggest

2. Buyer want the electricity bill in my name only. As per the builder they will provide the EB Connection in builder name only& later on i have to apply & change it to my name in Electricity board. Any chance i appy for change of name immediately before possession. What is the way?? please suggest

Further until the completion of the proptery tax assessment & EB Connection in my name buyer wants to put a clause in the SALE AGREEMENT to hold 2% (approx 1 lakh). Is this correct. How to negotiate with the buyer..Please suggest






 3 Replies

G.L.N. Prasad (Retired employee.)     28 October 2016

Make it 1% and agree for the clauses of purchaser and also incorporate the clauses in sale deed.

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Dr J C Vashista (Advocate)     29 October 2016

Various inconsitencies existed in your query such as: 

Sale deed is stated to have been executed but without possession, which is an essential ingradient of a sale/purchase transaction;

Mutation of the property is required to be sanctioned to deposit property tax in your name, which do not confer transfer of title of the property;

Similarly electricity connection can be applied/meter installed in your name on the basis of Sale Deed, give them a  copy of sale deed with application for installation of electricity meter. Electricity Board has no authority to reject/deny or raise an objection. 

No legal issue is involved to be advised, however, you may consult a local lawyer for proper appreciation of facts with respect to documents and guidance .

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T. Kalaiselvan, Advocate (Advocate)     30 October 2016

You should understand the concern of the buyer who is proposing to invest huge money in this hence his claims are justified.

However the practical difficulties prevail.

Without possession and execution of registered sale deed you cannot get the property transferred on your name as well as the other issues like EB water tax and property taxes.

Since it is not practically possible to transfer all those things on the buyer's name immediately, you may enter into a sale agreement with him and seek time for execution of sale deed after all those records are transferred on your name for executing a proper and registered sale deed in the name of buyer. 

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