Clarification regarding registration of "agreement to sell" on a leasehold property
Harjeet Narang
(Querist) 24 July 2012
This query is : Resolved
As per FAQ uploaded on Delhi Govt. Revenue site, on the latest supreme Court orders dated 10 Oct-2011. These FAQ and their answers can be found on Department of Revenue Delhi Govt. official site. As per the question No. 5 and its answer, it says there is no ban on registration on documents like Agreement to Sell, etc on bonafied transactions. I am pasting that para over here for better understanding.
5. Questions: - After the issuing of the circular whether GPA, Will, Agreement
to sell, or SPA can be registered by people in SR Office?
Ans. Yes, there is no ban on registration of these instruments in bonafide transactions. However, the GPA, Agreement to sell, Will or SPA collectively or separately shall not be
recognized as a valid mode of transfer of title. These documents do not give ownership rights in an immovable
property.Genuine cases of registration of such documents are not stopped.
Now, Please make me understand, that if someone wants to sell his house and the other one wants to buy, and as a matter of fact, the land is not freehold, and since this is a clear bonafied transaction, the agreement to sell document can be registered before the Sub registrar concerned ?, However, I understand that as per the answer given in question 5, that Sale agreement does not give the ownership rights in an immovable property. We are OK with it, but my concern is that by this answer we can move and get a Sale agreement documents registered before the concerned Sub registrar. Please respond.
adv. rajeev ( rajoo )
(Expert) 25 July 2012
If it is leasehold property, then you can sell lease hold rights only.
Adv.R.P.Chugh
(Expert) 29 July 2012
1. The Agreement to Sell can be registered.
2. Since the property is leasehold you are not the owner hence cannot purport to sell the property.
3. The best way (also discussed by SC in Suraj Lamps Case) is to execute a Registered Assignment of lease. Which can later be converted into freehold by the new lesssee
Harjeet Narang
(Querist) 29 July 2012
Few Queries on the resolution provide :-
1. Can there be a consideration amount involved in 'Assignment of Lease transaction" ?
2. Can a person in whose name the assignment of Lease is done, further can again do a assignment of Lease transaction in any one's name with a consideration amount involved ?
