Sale deed registration and criminal law
Dr. Shekhar
(Querist) 17 March 2014
This query is : Resolved
I have executed buyer's agreement with a builder Krishna in Delhi. The flat has total price of 14 lacs and I have paid 5 lacs. Now the flat is ready for possession and I need to pay balance. But the sale deed which builder Krishna has sent me for registration has seller shown as some other person, Mr Ashish Kumar and not this builder with whom I have buyers agreement. The reason told by builder is that the land is in Ashish Kumar name so only he can register sale deed.
However this fact was not disclosed in the buyers agreement and all the payment I am making by cheque in builders name and no payment is made by me to Asish Kumar shown in sale deed.
What are the legal consequences of such sale deed if registered and how to best resolve this matter? I a have as yet not paid the balance amount and has not registered the sale deed.
Devajyoti Barman
(Expert) 17 March 2014
Np problem, the Vendor is to be shown as landowner . However, the builder will have to be made a party describing him as Confirming PARTY.
This is how the deed of sale is executed and registered in respect joint developed property.
Rajendra K Goyal
(Expert) 17 March 2014
Repeated query:
http://www.lawyersclubindia.com/experts/Sale-deed-registration-459881.asp#.UybGf4VRx3A
Dr. Shekhar
(Querist) 17 March 2014
Ms Burman,
You mentioned that builder should now confirm landowner since I have the buyer’s agreement with only builder. But how this confirmation? Is it by obtaining separate letter from builder that the sale deed will be registered with land owner?
prabhakar singh
(Expert) 17 March 2014
HE IS NOT Ms. but MR.
HE IS NOT BURMAN BUT BARMAN only.
HOLIYA GAYE HO KAA RAKESH BABOO???
Dr. Shekhar
(Querist) 17 March 2014
OOO so sorry Happy holi sir
Dr. Shekhar
(Querist) 17 March 2014
Below is a legal notice to my builder who is now requiring me to register the sale deed with landowner of which he did not disclose in buyers agreement and all sale consideration is only paid to builder only.
Kindly read the attached legal notice and let me know how far it is fine.
To
Mr ABC
New Delhi -110028
I hereby issue you the following registered notice :
1. That you executed the buyer’s agreement on 28th January 2013 as ‘DEVELOPERS” and as an authorized signatory of KBC PVT LIMITED a company duly incorporated under the provisions of Companies Act 1956, having it’s Registered Office at New Delhi -110028 for Flat No. ‘A’ on Plot No. ‘67’ forming part of the NAKSHATRA HOME. measuring super built –up area of 530 sq ft or 49.25 sq mtr situated on Ground Floor at Khasra no 797/4/1 situates lying and being at village Village der and Distt Hardwar, Uttarakhand.
2. That in the above said Buyer’s agreement you have stated that by virtue of arrangements/ agreements for sale executed between landowners and the Developers, you as developer have acquired right title and interest in the said lands.
3. That you have received from me Rs 5,08,800/ - as buyer under the above buyer’s agreement out of total sale consideration as per sale deed of Rs 13,35,600.00 (Rs Thirteen Lac Thirty Five Thousand Six Hundred only ) the payments being as follows:
A) Rs.27,200/- ( Rupees twenty seven thousand two hundred only through cheque no. 008920 dated 26/11/2012 drawn on Citi Bank, Connaught Place, New Delhi.
B) Rs.1,00,000/- ( Rupees one lakh only through cheque no. 008922 dated 02/12/2012 through cheque no. 008922 drawn on Citi Bank, Connaught Place, New Delhi.
C) Rs.1,27,200/- ( Rupees one lakh twenty seven thousand and two hundred only through cheque no. 008925 dated 22/01/2013 drawn on Citi Bank, Connaught Place, New Delhi.
D) Rs.34,400/- ( Rupees thirty four thousand and four hundred only through cheque no. 003869 dated 13/03/2013 drawn on Federal Bank, Nirman Vihar, Delhi.
E) Rs,2,20,000/- ( Rupees two lakh twenty thousand only through cheque no. 061496 dated 13/03/2013 drawn on Yes Bank, Preet Vihar, Delhi.
4. That you have emailed me the demand letter for the payment of balance sale consideration of Rs. 8,43,100/- ( Rupees eight lakh forty three thousand and one hundred only) to your bank account instead to Shri Ashish Kumar s/o …r/o (Uttarakhand) who is the actual seller as per the sale deed to be executed and hence appears to be a lawful recipient of the above mentioned sale consideration.
5. That the sale deed for registration in connivance with your representative Mr . DSingh has sent me by email which I am required to execute with land owner Shri AKumar s/o Shri Sunil Kumar r/o Nagar (Uttarakhand) .
6. That in fact although I have no arrangement/agreement as per the Buyer’s agreement or otherwise with Shri Ah Kumar r/o District Udham Singh Nagar (Uttarakhand) yet unlawfully and incorrectly it has been mentioned in the sale deed that he has received the above mentioned payment and total sale consideration from me whereas the fact is that these payments have been actually received by you through a proper banking channel. Presence of valuable consideration is a basic element of valid contract under The Indian Contract Act 1872 the seller should be paid consideration without which the contract is void..
7. And that you have failed to disclose this fact to me on executing the buyer’s agreement on 28th January 2013 and is now coercing me to execute unlawful sale deed through several phone calls.
8. That you are liable to refund me the aforesaid amount of Rs.508,800 along with interest thereon up-to-date.
9. That why a criminal complaint be not lodged against you and why you are not held liable for having initiated legal proceedings against you under the following laws:
Section 17 of Indian Contract Act, 1872 – Fraud for concealment of fact
Section 18 of the Indian Contract Act, 1872 – Misrepresentation of material facts
Section 420 of I.P.C - Cheating and dishonesty
Section 406 of I.P.C – Criminal breach of trust in dishonestly disposing of property
Section 120B of I.P.C – Offence for criminal conspiracy and criminal negligence of duty
10. That I however reserve right to file a criminal complaint also by issuing appropriate legal notice in this regard.
11. That you are liable to pay the aforesaid amount of Rs. 5,08,800 along with interest thereon up-to-date.
prabhakar singh
(Expert) 17 March 2014
Mr.Barman has already guided you.
Let both execute and sign the sale deed,the owner as well as builder.
That is more prudent when so much amount is already paid.Going for litigation at this stage is economically not a healthy decision
Interest rate not shown in notice.
ajay sethi
(Expert) 17 March 2014
repeated query no reply
Anirudh
(Expert) 17 March 2014
Dear Mr. Rakesh,
You are trying to be too hyper-technical.
If you are interested in purchasing the property go ahead and get the sale deed executed. So long as the Sale Deed is being executed by properly recording the sale consideration, you should not have any problem. Afterall, the developer had very clearly indicated in the buyer's agreement that "by virtue of arrangements/ agreements for sale executed between landowners and the Developers, they have acquired some right title and interest in the hands".
Please note the wordings very clearly that "agreement for sale executed between landowners and the developers", it is not "Sale Deed".
Therefore having ensured through an Agreement for Sale that the land would be available to them, the Developers can very well request the landowner to execute the sale deed for the undivided share in the land underneath, to the prospective buyer (YOU in this case). After all you are only buying a Flat. Therefore, you would only get undivided share in the land beneath. This transaction is a normal transaction and if I were in your position, I would jolly well get executed the Sale Deed as proposed by the Developer.
But be sure, by asking him to refund the money, it is you who would be going back from the agreement to buy the flat and not the Developer. The consequences would be yours and not that of the Developer.
Dr. Shekhar
(Querist) 17 March 2014
Dear Mr Anirudh, But in the sale deed to be executed it is shown that that landowner who is seller in the sale deed has received 13.85 lac where as actually all the payment has been through cheque received by developer and nothing is received by said seller. So do justify the consideration as basic condition on contract?? is it not technical?
Devajyoti Barman
(Expert) 17 March 2014
Thank you Singhji for asking the author to correct my gender and spelling of my surname.
Anirudh
(Expert) 17 March 2014
If the seller has not received, will he execute the Sale Deed? The very fact that the entire sale consideration given by you is being acknowledged by the seller has having been received by him, what is your problem? At best, you can ensure that in the Sale Deed the full consideration has been received by means of cheque (giving the details of the cheques issued by you).
Dr. Shekhar
(Querist) 17 March 2014
Dear Mr. Barman, your name has been corrected and noted in the records as pointed by respected Singhji. Sorry! for the inconveniences Mr. Barman.
Anirudh
(Expert) 17 March 2014
If the seller has not received, will he execute the Sale Deed. The very fact that the entire sale consideration given by you is being acknowledged by the seller has having been received by him, what is your problem?
Dr. Shekhar
(Querist) 17 March 2014
Dear Mr Anirrudh, Sorry ! either you are not getting the point or missing it. Problem is not mine but legal.
Please kindly again read my whole notice carefully and you see there technical problems. One of them is :
You are right that if the seller being land owner says in sale deed that he has received the payment then what is my problem BUT the cheques which are mentioned in sale deed were actually drawn in name of builder and paid to builder's bank account and not to the seller bank account . And nothing has been paid by me in fact to the seller/land owner as per the sale deed. Then how do we justify that this statement is honest, fair and correct in sale deed and will i be getting the good title without any proof of payment to seller ???? Can't after the registration challenge that these cheques were not paid to his bank account in case any problem later arises in between the builder and landowner???
Anirudh
(Expert) 17 March 2014
I admit, I am unable to make you understood.
Proceed as you like.
BEST OF LUCKS.
Dr. Shekhar
(Querist) 17 March 2014
If you admit that you been able to understand yourself, everything is fine.
Thanks.! Best of luck to you also.
prabhakar singh
(Expert) 17 March 2014
Now this problem seems get complicated to such a stage that without looking into the agreement between the developer and owners,nothing further i would like to speak.
