Legal Question in Real Estate Law in India

My father is planning to purchase a land at B'lore.

Here are the details on the transactions on the land.

1. Back in 1995, this land was an agricultural land and owned by a person named Mr.Chinnu.

2. In 1995, Mr.Chinnu gave GPA to a person named Mr.Subarao (aged 74) who was a tenant on the land and possibly could be a relative too. The GPA has given Mr.Subarao enough rights to Sell, Maintain, Develop the property on Mr.Chinnu's behalf. The reason mentioned for GPA trasnfer of the property was because that, Mr.Chinnu was aged and couldn't maintain (or) develop the property and he wanted Mr.Subarao to takeover via a GPA transfer and this GPA transfer has been registered to a local authority (Sub Registrar's office).

3. In the same year (1995), within three months after GPA transfer, Mr.Subarao and his son Mr.Nagaraju gave a GPA to another person named Mr.Venkataraju with enough rights to Sell, Maintain, Develop the property on Mr.Subarao and his son Mr.Nagaraju's behalf. Registration of GPA completed.

4. Mr.Venkataraju possessed the property for next 7 years from 1995 till Oct 2012 and paid the property taxes thereafter.

5. Mr.Venkataraju sold this property to a person named Mr.Raviragava in Oct 2012. They made a sale agreement deed and Khata has been transferred to Mr.Raviragava and he continued to pay taxes to BBMP.

6. Mr.Raviragava sold this property to a person name Mr.Murilidhara in Jan 2013. They made a sale agreement deed and Khata has been transferred to Mr.Murilidhara and he continued to pay taxes to BBMP.

7. Mr.Murilidhara sold this property to a person name Mr.Ramalinga in Apr 2013. They made a sale agreement deed and Khata has been transferred to Mr.Ramalinga and he continued to pay taxes to BBMP. Mr.Ramalinga fenced this property and posses A Khata on this property and paid taxes promptly.

8. My father is planning to buy the property from Mr.Ramalinga in a month or so. It will be a cash transaction.

Specific Questions:

1. My father has consulted couple of attorneys to make sure the property is good without any problems.

a private attorney and a bank attorney who could verify all the documents and gives opinion. Both attorney

said, EC is clear and verified documents thoroughly.

First private attorney said everything is clear and no issues and my father could go ahead and buy this property.

The bank attorney raised questions:

a. As in the statement 3 above, He asked what is the guarantee that Mr.Subarao had only one son Mr.Nagaraju who both signed the GPA to Mr.Venkataraju. What if any other children of Mr.Subarao come back and claim a share of this property in the future?

b. He suggested to get an affidavit from Mr.Nagaraju saying he is the only son for his parents and he has no objection towards any transaction on this property.

c. Also, He suggested to put an advertisement on the news paper stating that my father will purchase this property, if anyone has any concerns they should respond within seven days of the advertisement.

d. He also said that, with this conditions, he may not be able to approve a loan request to construct on this land.

It's almost impossible to find Mr.Nagaraju now, because no where they have mentioned their address. Are the above valid points? or is this a overkill?

2. We took these points to the private attorney again. He said:

a. A khata is enough to get a Bank loan approval for construction.

b. Even if someone comes back with the intention of claims on this property, it will be void because, there is

a limitation act like 14 years. Meaning no claims on the property could be made after 14 years of the

GPA execution in this case.

c. No need any affidavit from Mr.Nagaraju. It will only complicate the case.

d. Just for our satisfaction, an advertisement may be enough in this case.

Can we go with this private attorney?

3. Based on the above scenarios, three people have made Sale agreements, I believe these three people must have done the same checks before getting this property. The latest seller Mr.Ramalinga said, he tried for a loan from a Nationalized Bank on this property. He was able to get it. We got confused now. What are the risks associated with this transaction?

General Questions:

1. What is the best way to find if there is an pending litigation on a land property? a

2. In olden Days back in 90s, Did the authorities accept GPA transfers as a legal ownership transfer? How about the law now?

Any help appreciated.

Asked on 9/03/13, 4:01 pm

3 Answers from Attorneys

KarVai Legal Solutions Rajiv Gupta 9811284735 Ch.No: 359, Western Wing, Tis Hazari, Delhi www.karvai.in
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Services of a lawyer may be retained for conducting legal search on the property that your propose to buy.

Adv Rajiv

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Answered on 9/03/13, 9:32 pm
Fca Prashant Chavan Expert Edge LLP
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04.05.2013

Dear Sir / Madam,

More important than the GPA's being registered, is whether each and every respective transfer of title of the land from one person to another have been duly stamped and registered with the Tehsildar / District Registrar and whether Ramalinga stands as the title holder of the property in Government records. If the answer is yes, your father can go ahead and purchase it. If not, your father risks litigation proceedings if he purchases the land.

Regards,

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Answered on 9/03/13, 9:37 pm
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dear client...

Contact me at uttamtibrewal@yahoo.com

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Answered on 9/05/13, 12:24 am

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