Whether agreement to sale can be prepared for new tenure land before converting it into old tenure
Shyam Agarwal
(Querist) 02 October 2015
This query is : Resolved
Sir, We have purchased New Tenure land (Navi Sharat Jamin) from Kool in Gujarat & he has not paid premium to state govt. & Conditions are that 30% payments will be given immediate & rest 70% will be given after New tenure land gets converted in to Old tenure. whether we can prepare Agreement to sale (Sathe Khat) after making 30% payment immediate with the above conditions that 70% payment will be made after conversion of land in old tenure. or there is any restriction that sathe khat can not be made till the conversion of new tenure land in to Old tenure land
Please guide.
niranjan
(Expert) 03 October 2015
Sale agreemnt of new tenure land is against the condition of grant and you cannot ask for specific performance without it having been converted to old tenure. So it is risk and your contract can be frustrated if it is not converted into old tenure. Agreement may be done,but risk is involved. You will hve to get it registered,it is compulsory in gujarat on payment of stamp duty of part consideration.
Rajendra K Goyal
(Expert) 04 October 2015
The deal has risk factors, discuss with local lawyer after showing all related documents.
Hemant Agarwal
(Expert) 06 October 2015
1. "Agreement to Sale" can be executed between the Seller & Buyer, for such properties, without any "legal" hitch. There is no risks to it, provided the said agreement is duly registered. The Buyer should also duly register a "Power of Attorney" in favor of the Buyer, from the Seller.
2. HOWEVER, "AFTER" the "New tenure land gets converted in to Old tenure", NOW execute and duly register a "SALE DEED", using the "Power of Attorney". The "revenue dept" is consider only the Sale Deed, Conversion order of New Tenure to Old Tenure and the Registered POA.
Keep Smiling .... Hemant Agarwal
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