3 March 2021
The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the following Q&A which was published by the Mint Newspaper on 03rd March, 2021 and the online edition of the same can be found here.
We are three brothers who inherited a freehold property in 2003 through a duly registered will. We got the property mutated in our joint names with the municipal authority for payment of annual property tax, jointly. We decided to rebuild it into three dwelling units. The Municipal Corporation of Delhi (MCD) sanctioned these plans, and we have obtained the completion certificate. We entered into written family agreements for the partition of our shares by draw of lots. However, some disputes arose before its enforcement, which were settled through the mediation and reconciliation centre (MRC) of the Delhi High Court. This memorandum of understanding (MoU) is the agreed settled ownership. We got our shares registered individually with the MCD and have been paying property tax.
To get our rights of individual titles, do we have to get it registered with the sub-registrar? If so, is stamp duty payable?
Where would the ownership records be available after our deaths if the property is not regisatered with the sub-registrar, but the registration has been done with the municipality?
—Subhash Kumar
The mutation of immovable property records with the municipal authorities is only for property tax assessment purposes, and it does not confer any title to the immovable property. In order to have a valid and marketable title over immovable property, one should have a registered title deed in his/her name. Hence, it would be important that you consult a counsel to get a partition deed or a family arrangement deed drawn up on the basis of the MoU and get the same registered with the sub-registrar. This will also minimize the risk of your legal heirs challenging your future will.
Stamp duty on a partition deed/family arrangement deed is payable at 2% on the circle rate value of the largest share out of the partitioned property. 1% on the circle rate value of the largest share out of the partitioned property shall be the registration fee payable.
My mother is our flat’s sole owner in a Mumbai housing society. In February 2020, she transferred 50% in the form of a registered gift deed. We have submitted all documents along with the gift deed to the society committee. Due to covid, the society stopped holding meetings. Recently, we asked for the progress of our documents, but the society has not responded. How do I get the society to issue an NoC?
—Urmil
As a member of a co-operative housing society, your mother is entitled to inspect the minutes of the general meeting, minutes of committee meetings and those portions of the books and records in which her transactions with the society have been recorded. We suggest that your mother formally request, in writing, for copies of such documents. She should note whether her submission was taken on record, and what further action was set out in that regard by the society. This will help you factually assess what actions have been taken on the matter by the society.
Should the minutes reflect that the society has been conducting regular meetings in the recent past, and is refusing to take any action to issue the NoC, new share certificate and changes in maintenance bill copy for the flat, your mother is entitled to seek a response from the society regarding the same.
For further information, please contact:
Rishabh Shroff, Partner, Cyril Amarchand Mangaldas
rishabh.shroff@cyrilshroff.com
