nilanjana (n/a) 19 May 2011

Right to relinquish

We are in process of buying a piece of land which is currently held by 6 owners - 3 of them do not want to sign the agreement or receive any money from the transaction. they have hence signed a MoU between themselves relinquishing their right. Can this mean that only 3 of them (those that will receive the money) will actually need to sign the agreement and can receive the money? is this valid/ legal? if not what is the solution?

thanks

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3 Replies

advocate rajan pandurang joshi (Proprietor) 19 May 2011

You have mentioned that out of 6 co-owners, 3 have made a MOU and relinquished their rights in favour of the rest of the three. If such an arrangement entered into past would partake a Family Arrangement. A family arrangement recording the past arrangement is not required to be registered. However, if such arrangement is recent one, then it would amount to release of their shares in favour of others. The same would attract compulsory registration. From the purchaser's point of view it would be safe if the three are requested to confirm the transaction and delivery of possession. In the absence of particulars of MOU, it is not safe to make comments about its validity and binding nature on the legal representatives of those who purported to have relinquished their shares. When undivided share is purchased, the only right a purchaser gets is to have partition of the share purchased and delivery of possession by those who have sold their undivided share is not valid. Hope your query gets sorted out. Advocate R.P. Joshi

(Guest)

@Nilanjana

Once relinquishment deed is signed, the person relinquishing his rights in the property have lost all his authority/rights over the property and those right are vested in the person in favour of whom the replenishment is made and he became absolute owner of said property.

Unless extra ordinary circumstances of fraud or influence are proved relinquishmant registered deeds will no t be cancelled.however any party can file any suit and drag it for years.

Be carefull ,They have hence signed a MoU between themselves relinquishing their right.Its safe if three owner who relinquish their right also confirm the transaction and delivery of possession to you.There is no problem in your matter and you can buy the piece of land but if you have any strong and valid doubts about these person then better dont enter in an agreement.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 19 May 2011

Originally posted by :nilanjana
"	is this valid/ legal? if not what is the solution?	"

1. An "MOU" has no legal standing. IF relinquishment procedures have to be done THEN it has to be done via a registered stamp duty paid "relinquishment deed" for it to be lawfully valid.

2. It is highly unwise to purchase any immovable asset / property on the basis/part basis of an MOU, since it will be easily declared null & void in case of court disputes.

3. An "MOU" can be modified /annulled anytime by the makers, whereas an registered + stamp duty "relinquishment deed" cannot be modified /annulled and lawfully is a "permanent" and "irreversible" legal document.

4. The current alternative is to let EACH of the other three execute an registered "irrevocable power of attorney" (POA) specifically for the particular property, in favour of any one of the land sellers and then carry on the transaction of sale/purchase of the land. Based on this POA, the POA holder may lawfully excute the land sale deed on behalf of the absent owner-sellers.

Keep Smiling .... Hemant Agawal