Earnest Money Agreement----Rgd. or Unregd.?
Querist :
Anonymous
(Querist) 19 January 2011
This query is : Resolved
I am a property dealer,earlier we used to make "Earnest Money Agreements" (Agreement to sell) on plain papers with signatures on revenue stamp.
These days we are making these agreements on Rs.50/-stamp papers.
My question---Should we get these agreements registered or unregistered are ok--if some dispute arises?
Deals are in Crores.
Parveen Kr. Aggarwal
(Expert) 19 January 2011
It is always safer if the agreement to sell is got registered.
Devajyoti Barman
(Expert) 19 January 2011
Yes as the unregistered documents are easier to be eenforced through the civil court.
Querist :
Anonymous
(Querist) 19 January 2011
Devjyoti ji,
U say "Yes as the unregistered documents are easier to be eenforced through the civil court"
Do U mean to say that unregistered docs are have better legal stand than the registered ones?
Nevertheless---I mean to ask whether the unregistered "Agreement to sell" is valid in the court of law or not,if some dispute arises?
Devajyoti Barman
(Expert) 19 January 2011
No I mistyped it . I meant to say the 'registered agreement'.
The unregistered agreement is always valid in the court of law. The reistration of it helps if the purchaser wishes to file a suit for specific performance of contract in the event of refusal of th seller to complete the sale.
Querist :
Anonymous
(Querist) 19 January 2011
Devjyoti can we stand in the Court of law,with unregistered "Earnest Money Agreement or not?
Parveen Kr. Aggarwal
(Expert) 19 January 2011
If the possession of the property is delivered to the purchaser at the time of agreement to sell, it is necessary to get such an agreement registered.
Querist :
Anonymous
(Querist) 20 January 2011
Parveen Ji,possession is generally not handed over at the time of Earnest Money, so what--Rgd. or Unregd...?????????
Parveen Kr. Aggarwal
(Expert) 20 January 2011
In case possession is not handed over at the time of agreement to sell, it is legally not necessary to get the agreement registered. But still it can be got registered. A registered agreement is easy to prove in the court in case of dispute.
niranjan
(Expert) 20 January 2011
U/s 49 of the Registration Act, suit for specific performance can be filed on unregd.sale agreement,but I have also come across judgments which say that suit on unregd.sale agreement is not maintainable. When the agreement is coupled with possession,it has tobe compulsorily regd. and without that suit will not lie for sure.
