Legal Question in Real Estate Law in India

Re: Claims Pending For Seller

In my opinion, you should demand the outstanding from previous owner and also inform him/her that for the time being you would be paying the same with right to recover the same from him/her to avoid any further steps of recovery from municipal corporation like attachment etc.

If the previous owner fails to pay the outstandings, you can file a suit for recovery of that amount. You may also go through the Deed of Purchase - in such deeds there is a standard clause which says that all the dues till date have been paid by the Vendor/Seller etc. etc.

Re: Claims Pending For Seller

The Municipal Tax is a charge on property. Apart from everything else, as current owner the property owned by you is under the burden of such tax liability. Your remedy is to file a suit to recover the same once you pay - As Municiple authorities will ultimatly ask you to pay or threaten to auction property if tax is not paid.

Re: Claims Pending For Seller

Via E-mail: [email protected]

Re: House Tax

Dear Sir,

We are in receipt of your letter dated June18, 2003.

We understand that the tax of the house you have bought is not paid for the last five years by the seller of the property and he did not tell you anything about this.

Under the Transfer of Property Act, 1882 the creditor (Municipal Corporation) can bring a suit against the transferor /seller of the property to realize his dues and can set aside the whole transfer. The transferee�s / buyer�s right is protected under the act and it says that nothing in this provision shall impair the rights of a transferee / buyer in good faith and for consideration.

Under the law burden of proof is on the person who alleges fraud and mere suspicion is not sufficient to set aside the deed. Chandradip Singh v. Addl Member, Board of Revenue AIR 1978 Pat 148.

If the transferee / buyer proves, that he paid the fair value of the property the court will lean towards holding that he acted bona fide. Amarchand v. Gokul (1903) 5 Bom LR 142

However, before we could give you final and conclusive opinion we would like to see following:

1. agreement to sale, if any

2. copy of municipal records

3. by-laws of society

4. clearance given by society

5. any commitment / undertaking by the seller to settle past dues till the date of sale

6. all other related documents / information.

In case you need any further information / clarification on the same, please feel free to contact us.

Thanking you,

Yours truly,

Dubey & Partners

310,New Delhi House

27, Barakhamba Road

New Delhi - 110001

India

[email protected]

[email protected]

*****************************************DISCLAIMER******************************************************

Kindly note that the above said is general in nature and should not be taken as the legal opinion as we do not have the knowledge of the facts and circumstances of the case.

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Re: Claims Pending For Seller

For this recitals of the sale deed has to be considered. If the sale deed is executed of all encumberences and all claims, then liability to pay such taxes will be on the Seller.

But if there are no such recitals in the sale deed then you can pay the House Tax as appropriate, and later can file suit for damages and compensations against the seller.

Re: Claims Pending For Seller

Unfortunately, you appear to have been cheated by the seller. You should visit the Municipal office and ask to be shown the relevant file. If you do, you will probably find that the taxes are outstanding and that the municipal authorities have even earlier issued notices to the previous owner demanding the arrears.

As owner, you will have to pay the arrears of tax.Since arrears of taxes constitute a charge on the property, the municipal authorities have the power to attach and sell it by auction to recover their dues.If that happens, you will lose the property.

The agreement which you signed for purchase of the property almost certainly contains a clause saying that:(i)all taxes have been paid up to the date of sale;(ii)that nothing is outstanding;and(iii)that if anything is found to be outstanding for any period before the sale, the seller will have to pay the same.

Please check the document. If there is such a clause, then you can file a suit against the seller to recover the amount of tax unpaid up to the date of sale.

You may be also able to file a criminal complaint of cheating against the seller. Please consult a lawyer who practices criminal law.

Re: Claims Pending For Seller

In my opinion itis the selers liability to pay all the pending municipal taxes.You can deduct the amount from the sale consideration if it is due.For further advice please contact me on my tel. no.020-5434569.I can help you to recover the dues form the seller.