Unregistered sale agreement
Dipen
(Querist) 07 October 2023
This query is : Resolved
Dear Experts,
50% of share of a commercial rented property is sold and a sale agreement is made. However the same is not registered and no stamp duty is paid on the same. Due consideration between parties has been paid. In this case will purchasing be considered as joint owner of unregistered sale agreement? Also will he be subject to income tax on rent recd if he is considered as joint owner?
Please advice
Regards
kavksatyanarayana
(Expert) 07 October 2023
The question of joint ownership does not arise on unregistered and unstamped Sale Agreements.
T. Kalaiselvan, Advocate
(Expert) 08 October 2023
The person who entered into a sale agreement alone and has not got the sale deed registered to the share of property he purchased, he cannot claim title to the property purchased even though he may claim that he has paid full sale consideration amount.
Therefore insist on the vendor to execute the registered sale deed immediately or you can approach court with a suit for specific performance of contract.
Unregistered document will not confer title to the property
Advocate Bhartesh goyal
(Expert) 08 October 2023
No, title of property does not passes on basis of sale agreement so purchaser can not be considered owner of property on basis of sale agreement.
Dr. J C Vashista
(Expert) 08 October 2023
Agreement to sell do not confer / transfer title of the subject property.
Both the owners / vendors / sellers of joint ownership property have to sign the agreement to sell.
Agreement to sell may or may not be registered.
Stamp duty (charged under State Act) for unregistered agreement is generally nominal say about Rs. 100/- or so, which differ from a state to another.
Registration of agreement to sell is optional, however, even unregistered agreement is valid in law for all purposes, including institution of a suit for specific performance of the subject agreement.
