BINIT SHAH (Manager) 13 August 2017

Sale of property

Dear Friends,

I have certain questions regarding a sale of property
My fathers has a property in Mumbai which is on a Pagdi system. We are using this property since 15 years and were paying a rent of Rs 100 per month. The building has gone for redevlopment but we are still are paying the rent of Rs 100 per month to the builder.
Now I want to sell the flat and I am receiving around 50 Lacs for the property.
My question here is that what is the procedure to sell this flat?
Do I need to give a transfer amount to the builder?
How would the agreement be in such case as my father does not have the property in his name?
Lastly what is the incometax liability in such case?

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4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 13 August 2017

There are three parties involved when redevelopment of the property is considered – owner, tenant and builder/developer. As the landlord holds the records of the property, he possesses complete ownership to sell the property. Once the property is redeveloped by the builders/developers, the landlord takes the profit out of the property at once and permanently. Once the profits are withdrawn, the landlord has no authority over the property. The tenants who are in possession of the said flat/property after the redevelopment becomes the sole owner of the property.

BINIT SHAH (Manager) 13 August 2017

Does this mean I cannot sell the property right now??

Susen Nath 13 August 2017

Ur condiction under vegue so be careful.

Adv Akhtar Ali Sheikh (Property Law Consultant) 13 August 2017

If builder is collecting 100 rupees rent per month that means he has purchased property from the erstwhile landlord and he himself has become landlord of the property.

Now he is the owner of the property and developer as well.

The buyer, you (your father) and the builder if he has purchased the property, all three of you have to enter into an assignment deed/tenancy agreement under which you will relinquish your right in the flat and the buyer will acquire your existing rights in the flat with the concurrence of the landlord. Usual payments may be entered in agreement and it will entail payment of stampduty and registration also.

Naturally landlord will have his share as per mutual understanding.

For income tax ask your CA.