NKG (Self) 31 July 2011

Opinion for agreement for sale with possession

Experts,

Greetings.

1. I would like to know about "Agreement for Sale with Possession" ?

I and seller ( who has Landowner Share in joint development) agreed to execute Absolute Sale deed for a just constructed flat. For same block BUILDER was performing registration till few days back and many people are living there.

But now BUILDER (third confirming party) says that recently WITHOUT Occupany Certificate, Sub-Registrar is not considering any deed for execution. For same it will take few days more (unsure) for them

Unsure, but Further there seems to be issues of BDA, BBMP related to who is OC giving authority.

Now Seller (Landowner) is asking to take Possession Letter from him, Keys and execute Agreement for Sale.

I found there is something called Agreement for Sale with possession and it is registered at SubRegistrar office that it is GOOD document. Seller agrees to re-appear at time of Registration without any issue.

Please suggest

a. Is it OK

b. What are best and important clauses in our favor for future complications

c. Does Builder Confirming party needed on both occassions, apart from landlord/seller

d. For FIRST SALE, Stamp+Reg at Bangalore is around 6.78+1 =7.78%; Now for
Agreement for sale with possession, how shall it be ?

e. Then do I need to pay this 7.78% again at time of Absolute Registration or does it gets adjusted ?

thanks

regards

nkg

Reply Follow

1 Replies

Mahadeva Rao G (ADVOCATE) 06 August 2011

Till few days if there was registration going on means - check on whether occupancy certificate is issued and also by whom. Yes if the agreement of sale is registered without showing possession ( but in reality u may have the possession - just for your convenience ) in such a case u just have to pay 1% of the total sale consideration as stamp duty and when the absolute sale deed is executed this 1% u paid earlier for registering the sale agreement will be deducted from the total stamp duty to be paid for that property as per guidance value. Since property buying is very tricky issue especially when there is a joint development involving the land owner on one part and the builder on the other part go through the documents throughly and first ascertain the rights of both parties and deal carefully. i suggest u engage an advocate who can verify and scrutinize the documents pertaining to the property u want to buy and only after his legal opinion and assistance u can proceed buying the property. Avoid buying property which is having ambuigity about ascertaining the definite rights by metes and bounds of both the builder and the land owner.

U can revert back to me on sohan1912@rediffmail.com if u need any clarification.

All the best and warm Regards.

Mahadeva Rao G. ADVOCATE 9845285555 bangalore.