Is your prop­erty reg­is­tered?

Will the re­cent Supreme Court rul­ing on own­ing prop­erty sans a signed and stamped sale deed im­pact the mar­ket?

HT Estates - - Front Page - Van­dana Ram­nani

In a judg­ment that will im­pact both free­hold and lease­hold trans­ac­tions, the Supreme Court has ruled that im­move­able prop­erty can be law­fully trans­ferred only through a reg­is­tered deed of con­veyance.

“Trans­fer of im­move­able prop­erty by way of sale can only be by a deed of con­veyance (sale deed). In the ab­sence of a deed of con­veyance (duly stamped and reg­is­tered as re­quired by law), no right, ti­tle or in­ter­est in an im­move­able prop­erty can be trans­ferred,” the apex court has held.

It noted that prop­erty trans­ac­tions through GPA (gen­eral power of at­tor­ney) were “evolved to avoid pro­hi­bi­tions/con­di­tions re­gard­ing cer­tain trans­fers, to avoid pay­ment of cap­i­tal gains on trans­fers, to in­vest un­ac­counted money and to avoid pay­ment of un­earned in­creases due to de­vel­op­ment au­thor­i­ties on trans­fer.”

The judg­ment will not harm past trans­ac­tions. So, how will it im­pact those who have al­ready bought prop­erty through GPA so far? Ac­cord­ing to Su­nil Tyagi, se­nior part­ner, ZEUS Law As­so­ciates: “The judg­ment is prospec­tive and will not af­fect past trans­ac­tions. What has been held not per­mis­si­ble is sale of im­mov­able prop­erty by way of agree­ment to sell (ATS), GPA and Will to avoid pay­ment of stamp duty or to evade per­mis­sions that may be re­quired for cer­tain kinds of sales.”

How­ever, a sale deed ex­e­cuted by an at­tor­ney hold­ing validly and legally ex­e­cuted power of at­tor­ney has not been ruled out. The court has ob­served that merely on the ba­sis of ATS, GPA, will, etc, a per­son does not be­come owner of a prop­erty in the ab­sence of duly stamped and reg­is­tered sale deed.

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