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Amit Sharma (Founder)     07 August 2012

Is agreement to sell can be registered at registrar ofice ?

 

Is Agreement to Sell Can be Registered at Registrar ofice ?

Dear Friends,

I would like to know whether Property Sale - Purchase Initial Agreement to Sell on (100 rs Stamp paper )can be Registered Under Registrar Office for Buyers & Sellers Safety POV.

How much this Agreement to sell is valid in court at the time of dispute?

Please Suggest.

Regds
GM

 


Learning

 12 Replies

Adv Archana Deshmukh (Practicing Advocate)     07 August 2012

You cannot register an agreement of sale on Rs 100/- stamp paper in the sub-registrar's office. You will have to pay complete stamp duty if you choose to register it with the Sub-registrar.

Amit Sharma (Founder)     07 August 2012

How complete stamp duty can be paid initially at the time of initiating deal with seller wherein the flat is under construction?

 

I am looking forward to buy underconstruction flat of the builder, is the deal on 100 rs stamp paper valid in court ? 

 

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     07 August 2012

An Agreement to Sell being a document that does not vest any propreitary rights by itself but merely giving right to obtain another document, is not required to be registered. An agreement to sell on a 100 rupees stamp paper is perfectly admissible in a court of law, and can be used to file a suit for specific performance/damage in case of breach.

Amit Sharma (Founder)     07 August 2012

Thanks Bharat for your advice. Can i get document where this written that ATS on 100 rs stamp paper is admissible in court of law and can be used to file a suit for specific performance/damage in case of breach.

Manoj singh (Engineer)     07 August 2012

Mr. Bharat Chugh,

 

I want to clarify on your above statement that the Agreement of Sale doesn't need to be registered and can be produced as an evidence in court. I came across this judgement from High court which contradicts that and would like to have your views on that.

Here is the linkk for the judgement.

https://www.lawyersclubindia.com/judiciary/Unregistered-Agreement-to-sell-can-not-be-specifically-enfor-42.asp#.UCDCzk1Dykw

Amit Sharma (Founder)     07 August 2012

Dear Manoj,

 

Can you pls update me in brief what this judgement means ? Is this means that unregistered agreement to sell cannot be enforced in court of law ? 

 

Please Suggest on this

Manoj singh (Engineer)     07 August 2012

Gaurav,

I am not a lawyer and thats why I want my Bharat opinion on that.

But thats what it seems after reading the judgement. It needs to be registered.

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     07 August 2012

@Dear Mr.Singh - The judgment that you talk about, has relevance only in State of UP, where via an amendment made in 1976 - S.17 & 49 of the Act were amended, and agreement to sell or contract for sale of immoveable property was made compulsorily registrable. The national position remains as I said, the querist has not mentioned that hte property pertains to the State of U.P. 

 

@Dear Mr.Gaurav - Kindly read S.17(2)(v) and S.49 (proviso) of the Registration Act, 1908. 

 

Don't forget to send me your feedback on this !

Amit Sharma (Founder)     07 August 2012

Dear Adv. Bharat,

So Can you please let me procedure of Registering a Agreement to Sell of Under Construction Property of a Builder wherein possession would be in a Year or Two.

As i m buying flat so concerned on safety pov. 

 

Regds

Gaurav

surjit singh (Assistant)     07 August 2012

I completely agree with Mr Bharat, but you have not said anything about the payment  of complete stamp duty  as Ms Archana said. When the construction is not complete how will the complete stamp duty be calculated.

Amit Sharma (Founder)     07 August 2012

My question is very simple :

As i am buying underconstruction flat in resale from individual & as per general market practices we have to do agreement to sell (ATS) wherein i will pay 10% of the total flat value & balance payment within 45 days at the time of transfer of flat in my name in builders office.

I wanted to know : i am paying 10% of the total sales consideration of the flat at the time of signing ATS on Rs. 100/- Stamp Paper of Delhi . 

Will this ATS Gets Registered in Court & If this ATS (of 100 rs.) cant be registered in court then what is the validity & enforcabililty of this agreement in court in case of any dispute arise between seller & buyer.

N.K.Assumi (Advocate)     08 August 2012

Agreement to sale is governed by the Indian contract act and transfer of property act. Agreement for sale can be executed in plain paper and not necessarily on stamp paper as even oral agreement is valid agreement. The issue here is whether it need to be registered or should be registered. As per Registration act, registration of agreement for sale is optional only, as such you may or may not registered the agreement for sale.In case you want to register which is only optional you need not pay the full amount of the stamp value as it is not yet ripen into a deed of conveyance with full paymengt as such Rs.100/-stamp is enough for registration. But in your ATS must clearly specify title of the seller to the property, location, details of the ownership, time for completion of sale Deed, detail discripttion of the property you intend to purchased as required by Section 21 and 22 of the Registration act.


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