Amit Sharma (Founder) 21 April 2013

Is sub agreement to sell valid for resale property transacti

Hello Friends,

I am planning to buy Resale Under Construction Property (3 BHK Apartment) in Gurgaon. I am buying the apartment from the agreement holder (buyer) of the original allottee (which means on my other side - i am signing off the sub agreement)

Example : Original Allottee/Seller (OA) Signed/Entered the Agreement to Sell(ATS) with Mr X & on the basis there ATS i am signing/entering the Sub ATS with Mr X for the purchase of same property.

This property is not transfered in the name of Mr. X yet & Mr X is not is Legal Owner of the said property but in his agreement with Original Allottee, its clearly mentioned being an property investor he can sell this property further & takes sales consideration value from prospective buyer (i.e me in this situation).

Please Suggest me is the Sub - Agreement to Sell valid in Court if be needed wherein Mr X is a Agreement Holder of Original Allottee ?

Please Reply Soon,

Regds

Gaurav Marwah

Reply Follow

2 Replies

Advocate Suwarna Jadhao (-) 22 April 2013

Hello Sir/Madam

Only the owner of an property has a right to sell the property, but only by signing the AST he don't become the owner. Also as the property is under construction he must have not paid the full consideration amount also. So it would be better if u eexcute a tripartitte agreement wherein u make the builder also party, so that whenever the sale deed has to be executed the builder can directly execute it in ur name. Is the agreement to sell registered ? If not than also if u show reference of this AST with Mr.X stamp duty will be needed to be paid on it, if this clause comes in ur sale deed, and Mr. X has not paid the S.D. O straight away u enter into AST with builder and ask Mr. X to cancell his AST or even u can execute a MOU between urselves.

Adv. Suwarna Jadhao

Nagpur

PRIM EXI 02 September 2020

I was into this issue and tired to tinker around to check if its possible but couldnt get it done. Now that i have seen the way you did it, thanks guys
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shareit.onl