I am going through the sale of the property of our father who died in 2018. We have done the property’s mutation in the name of my mother, elder sister and myself. My sister has moved to the UK. We have a buyer in India who has given an advance for the property and needs power of attorney for the progress and to finalize the deal. Would appreciate your guidance on same.
As per the details provided to us, we understand that your mother, elder sister and yourself are the only legal heirs of your deceased father who are the co-owners of the subject property and now selling the immovable property to a buyer. It is assumed that the consideration in the proposed transaction would also be divided among you.
Since your sister is residing in UK, she will be required to give a specific power of attorney, which is required to be apostilled (a type of attestation) in the UK. The power of attorney may be granted by your sister either in favour of your mother or yourself, for the purpose of executing, admitting execution and registration of sale deed and then at any time thereafter to present and register sale deed and other documents relating the sale of the subject property.
Once the apostilled power of attorney is brought into India, it would require to be stamped and signed with the appropriate stamp duty as per the applicable state stamp Act. This power of attorney will then be required to get the sale deed to be executed with the prospective buyer and registered before the concerned office of sub-registrar having appropriate jurisdiction.
I am about to purchase a property in the village area of Santacruz East, Mumbai. It’s a landed property, and the owner died long back. The property tax, however, still comes in the landowner’s name. A house is built on that property where four individual flats are built. I am looking to purchase one of those flats. I have been told that houses in villages don’t require stamp duty and registration, but an agreement is enough for sale. Is this true? If not, then I would like to get the stamp duty registration done. How do I go about it?
All transactions for sale and purchase of immovable properties require to be stamped and registered as per prevailing stamp and registration laws in India. Hence, the information provided to you as per your query is incorrect.
In reply to the query on how to go about the proposed transaction in relation to the landed property (which we understand may be either a residential flat, shop, commercial premises or plot), a sale deed will require to be stamped as per the stamp Act prevailing in the state of Maharashtra and registered with the sub-registrar’s office having appropriate jurisdiction.
Note that as per the prevailing laws, the state government prescribes ready reckoner rates/circle rates, whereby the minimum market value of properties are prescribed which are generally revised every year; and it is advisable that such rates are to be considered while finalizing the transaction, along with the income tax aspect on the transaction. Note that our reply is only limited to the specific query raised by you and it is advisable to seek proper legal advice.
Aradhana Bhansali is partner, Rajani Associates. Queries and views at [email protected]