santhosh (it) 27 April 2013

Is unregistered mou a legal contract?

Hi,

I am planning to buy a plot in Hoskote , Bangalore. Project is BMRDA approved.

Land owner is agriculturist. He had acquired the land on his own.

He has entered Sale agreement and GPA to sell with 2nd party (stamp duryt is paid to Govt) and conversion and BMRDA approvals are obtained.

GPA holder (2nd party) has entered into Memorundam of Understanding (MoU) with Developer (3rd party). MoU is UN-REGISTERED.

I am planning to buy a 30x40 plot from Developer. I will be paying my full amount to Developer.

My lawer's concern

My lawyer verified all the documents and raised below concerns.

1 ) GPA holder (2nd party) and Developer (3rd party) do not have registered Joint development agreement or Registered MoU

2) He recommended that land owner (1st party) be party for my plot's sale agreement and sale deed exeuction along with GPA holder and Developer.

My questions for legal experts in this forum

1) In this above scenario, is registered JDA or Registered MoU a mandatory legal document that i should insist with developer before I enter my sale agreement?

2 ) As per legal law, who all should be parties for my sale agreement and sale deed?

3 ) Who should be vendors and who should be confirming parties?

Please help

Thanks,

Registered Joint Development agreeement (JDA) between Anish projects, GPA holder (Suresh kumar) is missing. % share between stakeholders needs to be documented in JDA, so that my site source is clear. As purchaser, I will make full payment to Anish projects, but my site will be registered to me by Suresh kumar which is discrepency. Legal document linking between Anish and Suresh kumar is missing. MoU is not registered document and hence not a legal contract.

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1 Replies

Hemang (Advocate) 24 May 2013

The agreement, or a contract entered into by and between the parties has to be executed and registered before the Sub Registrar of concerned jurisdiction. When the Owner and the Developer have agreed to develop the land, it is almost necessary that all terms and conditions are reduced in writting, signed by the parties, executed and registered, or else such an agreement, or MOU is not admissible in evidence. It may be pointed out that the Owner has to be a confirming party and the Developer a Seller in your agreement to sale and ultimate Sell Deed.

Registration of agreement to sale, or sell deed is compulsory whenever the consideration or the value exceeds Rs. 100=00 under the Indian Registration Act.