Agreement to sell with timeline of 12 months pay period
Srinivas
(Querist) 25 February 2013
This query is : Resolved
Dear All,
I have found a Property in Bangalore. It is under loan from a reputed coop bank and the owner is in urgency of clearing the loan. The amount demanded is slightly higher to the current market price and he is ready to provide a timeline of one year to pay the balance amount.
My question is whether can I enter into a registered agreement to sell with mention of the payment period of 12 months & get the absolute sale deed executed after balance payment. Is it valid in the law?
Devajyoti Barman
(Expert) 26 February 2013
Yes, it is absolutely valid.
This is called ' executory contract'.
Srinivas
(Querist) 26 February 2013
Thanks sir, Is this also considered for the stamp duties & registration charges as like GPA/SPA?
DILIP KUMAR AAGARWAL
(Expert) 27 February 2013
YES.BUT IT IS ADVISAVLE TO FIRST CLEAR THE BANK LOAN.
Guest
(Expert) 27 February 2013
Not wrong, if the seller enters in to agreement to sell in 12 months. However, at the time of sale deed, the property should be free from all encumberances, or the bank should be made ready to swap the loam dues against you to be paid directly to the bank.
However, there is a danger in long term agreement for 12 months. If the terms of agreement are not perfect and the seller gets some other prospective buyer with much higher offer, he can try to violate the terms of agreement for the sake of better deal, which can become the cause of unnecessary legal dispute between the parties.
Srinivas
(Querist) 27 February 2013
Totally agree with you sir. I am already planning to hire the legal expert, Also I Assume that the registration of this agreement at sub regitrar office help to stop seller any wrong action.
But discussion is for my accodemic developement. Is it allowed for irrivocable Agreement for Sale / Executory contract, like SPA/GPA?
Guest
(Expert) 27 February 2013
Agreements, unless void in law are irrevokable and can be got implemented by court order, if any party tries to back out.
Srinivas
(Querist) 27 February 2013
Thanks, The forum thought me lot of legal aspects.
Guest
(Expert) 27 February 2013
You are welcome.
Raj Kumar Makkad
(Expert) 04 March 2013
I do endorse the advice of Shri Dhingra G.
prabhakar singh
(Expert) 04 March 2013
"But discussion is for my accodemic developement."says author.
I do not promote it because of bar imposed by experts here though personally ,no objection.
