Legal pre-emption under duty on Documents Act, 1981

Abstract

Section 53 of Act XXXI of 1981 has re-introduced the right of legal pre-emption, which was abolished in 1961. In virtue of this section introduced in committee as an amendment to the original Bill, the Government acquired the right: "to assume the sale of any immovable property specified ... " in those instances where it is ultimately decided that: "the deed of sale does not reflect the true conditions of the sale". This important section in the 'Duty On Documents Act, 1981' was meant to deter prospective buyers from disclosing, in the deed of sale, part of the price actually paid to the vendor, since it was alleged that this had become an all too common practice in order to avoid stamp duty.