Person “A” has 4 sons namely “S1”, “S2”, “S3”,& “S4” and two daughters “D1” & “D2”. Owner “A” has written a single “WILL” for his property located in two different location namely “P1” & “P2” to his sons. The entire Property “P1” & “P2” was bought by "A" from his self earning and it is not an inherited property. After the death of “A”, based on the “WILL”, Property “P1” comes to “S1” & “S2” and “P2” belongs to “S3” & “S4”. Property “P2” is an undivided property enjoyed by “S3” and “S4” based on the WILL and it is not transferred to the name of “S3” & “S4”. “S3” has one Son and one daughter “GS1” and “GD1” and “S4” has only son “GS2”. This property can’t be divide b/w “S3” and “S4” due to the dimensions 35’x250’ and if it is divided it willnot be useful to either of them. Now “S4” wanted to sell this property to third party and “GS1” (Son of S3 to whom this property will come in future) wanted to retain his portion of property. In this situation “GS1” finds a third party “X” who is friend of him to buy the property and retain the property as undivided one between “GS1” and “X”. Kindly clarify the following queries: 1.How “X” can buy this property from "S4"? 2.How the portion of undivided property “P2”can be transferred to “GS1” who is son of “S3” as the property is still in the name of “A” and not transferred yet to “S3” or “S4” 3.How to minimize the registration fee for “GS1” as it is inherited property (owner is “A”) and it comes as a gift from his father “S3” to him. 4.Do we need to transfer the property to “S3” and “S4” based on the WILL before “S4” sells his portion of undivided land to third party “X” or it can be registered to “X” directly based on the WILL? 5.Is there any legal issues foreseen for “X” in future due to this transaction? The property remains undivided after the end of this transaction and it will be owned by “GS1” and “X” who are friends. This property is located in Tamil Nadu and is there any state specific legal points which needs to be taken care by “X” while buying the property from “S4”. Kindly clarity the above.
I give my reply:- 1. Only Will is written. No any Partition and final title deed. 2. Partition deed with schedule of property to determine rights of each successor is required. That will ensure identification of jointly owned and individual owned. 3. All the joined owners to sign sale deed. Under such Legal issues, the Client is advised to produce title deed with Possession certificate issued by Revenue deptt.
1.How “X” can buy this property from "S4"? A-1. Officially “X” can buy this property from "S4" but, as it is NOT divided it is NOT advisable to buy, rather GS1 OR GD1 can payoff the balance amt consideration to S4 2.How the portion of undivided property “P2”can be transferred to “GS1” who is son of “S3” as the property is still in the name of “A” and not transferred yet to “S3” or “S4” A-2. Entire WILL has to be probated then only further transfer can take place. 3.How to minimize the registration fee for “GS1” as it is inherited property (owner is “A”) and it comes as a gift from his father “S3” to him. A-3. After the WILL is probated then only gift deed can be made from his father “S3” to “GS1” 4.Do we need to transfer the property to “S3” and “S4” based on the WILL before “S4” sells his portion of undivided land to third party “X” or it can be registered to “X” directly based on the WILL? A-4. Yes, the WILL has to be Probated from the court, & then transfer the property to “S3” and “S4” & then further “S4” sells his portion of undivided land to third party “X” by registered agreement. 5.Is there any legal issues foreseen for “X” in future due to this transaction? The property remains undivided after the end of this transaction and it will be owned by “GS1” and “X” who are friends. This property is located in Tamil Nadu and is there any state specific legal points which needs to be taken care by “X” while buying the property from “S4”. A-5. As this property is undivided & property remains undivided after the end of this transaction and it will be owned by “GS1” and “X” who are friends & so all the documents needed to be reviewed & then we may advice further steps after carefully seeing all the documents. As you are also having entire documents you can get it reviewed / vetted from our legal expert team & you can contact us for further evaluation so that all the legal compliances are done.
Dear Client, Based on your detailed query, following are the clarifications: * For “X” to buy the property from “S4,” the property first needs to be legally transferred to the names of “S3” and “S4” based on the WILL. Once the property is in their names, “S4” can sell his undivided share to “X.” It is important to have a clear and unambiguous sale deed. * “P2” must first be transferred to “S3” and “S4” based on the WILL. After that, “S3” can transfer his share to “GS1” through a gift deed. Once the transfer is made, “GS1” will legally own the portion of the property. * To minimize registration fees, “S3” can execute a gift deed in favor of “GS1.” In Tamil Nadu, gift deeds between close relatives (such as father to son) typically incur a lower stamp duty than a regular sale deed. * The property must first be transferred to “S3” and “S4” as per the WILL. After the transfer, “S4” can legally sell his share to “X.” Direct registration to “X” without first transferring to “S3” and “S4” may create legal complications. * If all transfers and sales are properly executed, “X” should not face legal issues. However, it is crucial that the transfer of the property from “A” to “S3” and “S4” is properly recorded and that “S4” provides a clear title when selling his share to “X.” The undivided nature of the property may lead to disputes, so ensure that the property’s undivided status is clearly documented and agreed upon by all parties involved. * Ensure the WILL is properly probated if required. * The stamp duty and registration fees for gift deeds and sale deeds should be carefully calculated based on Tamil Nadu’s rules. Hope this answer helps you. For a detailed discussion, feel free to contact us.
