sale agreement

shreepad (Querist) 07 November 2014 This query is : Resolved
I'm going to buy the property in Bangalore of Rs.40lakhs. I want to register agreement of sale. How much I can Stamp duty to pay now. After that I want to show in sale deed only subregister value/ guideline value. Plz clarify

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R.K Nanda (Expert) 07 November 2014
consult local lawyer.

Devajyoti Barman (Expert) 08 November 2014
Stamp duty is different for different states. Visit the registration office to find this out.

Anirudh (Expert) 08 November 2014
Dear Shreepad,

I can understand the real reason behind your question.

What you say is that you have agreed to actually pay Rs. 40 lakhs for the property, but you will be showing less amount in the ultimate Sale Deed which will be as per the sub-registrar /guideline value.

In the above circumstance, you want to know what value is to be shown in the Agreement to Sell.

1. The above transaction means that some amount in the form of cash will be paid by you to the seller. This cash amount is the difference between Rs. 40 lakhs and the amount say 25 lakhs (as per Sub-Registrar/guidelines value).

If you show the entire 40 lakhs in the Agreement to sell, you will not be able to register the Sale Deed at a lesser value i.e. Sub-Registrar/guideline value.

Having shown the entire value of Rs. 40 lakhs in the Agreement to sell, you will be compelled to pay Rs. 40 lakhs to the seller, only then he will execute the Sale Deed. (At that time, the seller will not admit that he had received Rs. 15 lakhs from you in cash. If he has to accept that then the question of showing less value in Sale Deed does not arise.)

THEREFORE, IN THE ABOVE TRANSACTION, YOU HAVE TO SHOW ONLY THE SUB-REGISTRAR/GUIDELINE value in the Agreement to Sell and subsequently in the final SALE DEED. In this way, if the seller has signed on the Agreement to Sell the property at the sub-registrar/ guideline value, then he cannot go back to execute the sale deed so long as you are ready and willing to pay the Agreed price i.e. sub-registrar value.

(The cash amount paid by you separately, will get protected, as ultimately the property will get registered in your favour, even if you have to approach the Court, in case the seller tries to back out).

You have to pay Stamp Duty on the value of consideration shown in the Agreement to Sell. Whether it is 100% or 90% of the value initially and balance at the time of execution of Sale Deed etc., is to be ascertained from a lawyer well versed in property transactions in your area.