Completion of Sale

Dear Nevin

In practice, a sale is completed, only when the delivery of possession completes. But legally it shoul be accompained with execution of sale deed., otherwise the sale has no effect without a document. Similarly mere executing a sale deed without delivery of possion is also meaningless.

Section 65 of the Civil Procedure Code defines, "where immovable property is sold in execution of a decree and such sale has become absolute, the property shall be deemed to have vested in the purchaser from the time when the property is sold and not from the time when the sale becomes absolute. "

However completion of sale and purchase of a unit of property takes place when the developer conveys legal title of the unit to the purchaser.

As per an article on Sec 17 of the Indian Registration Act, 1908, as appearing on legalserviceindia.com, "the combined effect of section 54 of the Transfer of Property Act 1882 and section 17 of the Registration Act 1908 is that, a contract of sale in respect of immoveable property of the value of more than one hundred rupees without registration cannot extinguish the equity of redemption. In India, it is only on execution of the conveyance and registration of transfer of the mortgager's interest by registered instrument that the mortgagor's right of redemption will be extinguished. The conferment of power to sell without intervention of the court in a mortgage deed by itself will not deprive the mortgagor of his right to redemption. The extinction of the right to redemption has to be subsequent to the deed conferring such power. The right of redemption is not extinguished at the expiry of the period. The equity of redemption is not extinguished by mere contract of sale. The mortgagor's right to redeem will survive until there has been completion of sale by the mortgagee by a registered deed. It must also be noted that section 17 of the Indian Registration Act 1908 or the second para of the Transfer of Property Act 1882, will have no application to the agreement to recover property, being non-creation of any interest in the immoveable property." (Source: https://www.legalserviceindia.com/article/l408-Sec-17-of-Indian-Registration-Act,-1908.html ).

Hope your query would have been saisfied.