Akash 11 August 2024

Rights of an unregistered partnership firm over immovable property

I am a partner of an unregistered partnership firm. We own a few properties in the name of the partnership firm. I want to know if there can be any challenges regarding sale of such property or our rights in case of any dispute regarding such a property. We have a properly registered agreement having paid all stamp duty.

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Quick Summary

As a partner in an unregistered firm owning property, you may face challenges when selling or in case of disputes. While your rights are governed by your registered partnership agreement, the firm's ability to claim title depends on a clear sale deed. If the property is in the firm's name, individual partners' claims are subject to the partnership deed or articles of association, and court action is possible in case of disputes.

2 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 11 August 2024

The partners of the Firm have rights over the firm's property as mutually agreed in the deed. If any dispute is raised, any partner can file a case in the court.

T. Kalaiselvan, Advocate (Advocate) 11 August 2024

If the property was purchased on the name of the partnership firm then the partners cannot claim any share in the property until and unless they decide about it as per the provisions of the AOA or the partnership deed.

You have mentioned that it is a registered sale agreement in that case there is no sale deed also in the name of the firm, then even the firm cannot claim title to the property without clear and marketing title