if for purchase of property you are giving property of the agreed value then deed of exchange has to be executed
2) in fact it is exchange of property
3)better execute deed of exchange only
Sale deed consideration is paid by providing property instead of money
Hello Sir, I am buying a property, part of the sale consideration is given as a property of the agreed value (i have obtained the government value and using the same). I want to execute it as a sale deed and not as Exchange deed. My question is, 1) Does consideration in a sale deed should be in terms of money only? can it be given as a property of the agreed value? My Current lawyer is clarifying that the consideration should be in terms of money or goods as per contracts act hence it is not mandatory that the sale consideration should be in terms of money. 2) Is there any problem surface in future if we execute this as a sale deed? Need your opinion at the earliest. Regards Thenraj.R
Asked 7 years ago in Property Law
Religion: Hindu
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6 Answers
Hi, Consideration must be in terms of Money only otherwise it would become exchange of the property.
1. No, not necessarily. However, though payment of price is not necessary for completion of the transfer. but its reference in the sale deed is necessary.
2. Not at all.
Hi, Consideration must be in terms of Money only otherwise it would become exchange of the property.
It is not necessary that the consideration is in money but the consideration shall not amount to barter system also. It must be a valid consideration as per the Indian contract act.
Execute this as a sale deed, no legal impediment.
Regards
You can go ahead with your proposal to buy the property by paying the price amount partly as a property of the agreed value;
The provisions of section 4 Sale of Goods Act, 1930 may be invoked:
The provisions are given below:
4. Sale and agreement to sell.—
(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.
(2) A contract of sale may be absolute or conditional.
(3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.
(4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.
However the above provisions apply for purchase of goods only in which the property referred to herein above may not fall within the meaning of goods.
