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hetul Thakkar (Partner)     15 September 2010

Rectification deed of Agreement to sale prior to SALE DEED

Hi,

Me and my partner had purchsed a property in 2006 with bank funds: the bank asked us to make an agreement to sale. We did the same and got it duly registerd on both partners individual name. Bank asked us to rectify the deed as the loan shall be sanctioned on the partnership firm and not individual partners. Again we made deed of rectification "Partnership frim thru the partners and the seller" and got this duly registered on Rs. 100 stamp paper. Later the final sale deed was done and registered.

My Query is : Does that rectification deed attract a stamp duty ?

was I misguided ?

Thanks in advance:



Learning

 7 Replies

Saket Gandhi (advocate)     16 September 2010

Deed of Rectification would attrack stamp duty of Rs.100/-, in your case it was paid. Further, as stated by you i persume that a sale deed has been also registered in the name of partnership. Thus, now why to bother about agreemnt for sale of such property which has been purchased by the same parties under a reg. sale deed. However, for your clarification stamp of Rs. 100/- was duly stamped.

hetul Thakkar (Partner)     16 September 2010

Thank you saket.

Bharatkumar (ADVOCATE )     16 September 2010

My suggetion is first u cancellation the agreement for sale in both partners individual name thereafter u registered a new sale agreement in your partnership name on Rs.100/- Stamp paper, but u registered a sale deed in partnership name as per rectification deed. I think  individual property and partnership firm property both are different owner so u shall be pay stamp duty in feture this is my opinion.

hetul Thakkar (Partner)     16 September 2010

Dear Bharat,

I appreciate your reply. The initial payments done towards the property was done from the partnership current account, it was agreed to sell on Individual and then it was rectified on Partnership firm & later on the final deed was on partnership firm.


I want to argue is that the Partnership firm belongs to both of us and same as the account where the money is gone from. It was a genuine typo error by the documents maker that he ignored our firm name. Hence was rectified.


the words are: " in the said agreement for sale of apartment by inadvertence name of purchasers on page 2 is decribed as................................. instead of the correct name of purchasers as :- My firm and partners "

The registrar would had objected and would had implied the stamp duty if it was ambigous ( my thinking)


Thanks in advance

 

 

Bharatkumar (ADVOCATE )     18 September 2010

U r right but when u go to register this rectification deed at registrar office, first u discuss about this matter, but i think he has not accept  your argue. Why u r not cancel this document?

hetul Thakkar (Partner)     18 September 2010

Dear Bharat,


Yes the registrar accepted the and registered it and we also registered the sale deed after that. Every thing is fine now, This query is raised by the new buyers lawyer that the Stamp duty is a pending laibility and might come on the head of new purchaser in future.

hence I approached the forum for help.

 

Thanks .

 

hetul

Bharatkumar (ADVOCATE )     20 September 2010

Yes, the new buyers lawyer is right and this reson the title of this property is deffective, I think u write in sale deed that " The all laibility fo stamp duty is our (Vendor) and i m agree to pay in future only for this matter. Or u and your partner registered a declaration in Sub-Registrar office for this Rectification deed with details.  U write in declaration that the payment of property is paid by our partnership firm account etc.............. and first u discuss with new buyer lawyer and as per advise of buyer lawyer u registered a declaration.

 


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