When is the date of disposal? When I sign the Sale and Purchase Agreement? Or is it when the title is transferred? How about date of stamping? Part 2
What is disposal? Section 2 of RPGT Act 1976 gives the meaning of:
“dispose” means, subject to subsection (4), sell, convey, transfer, assign, settle or alienate whether by agreement or by force of law;
Therefore, a disposal means an agreement or by force of law – to sell, etc of (a real property). In such manner, when an agreement of SPA is entered into, the process is taken as disposal. The date of disposal shall be the date of entering into this agreement. Whether it subsequently requires further action is immaterial. However, in Contracts Act, 1950 a condition not able to be reached will render an agreement void. See “contingent contract” – s.32 CA50.
The process will take some time, may be a few months to even a year! This is specified in Para 16, Schedule 2, RPGT 1976. This schedule put the date of RPGT on the date of State Authority approval (which is a condition of disposal).
As for stamping, we will discuss another day.