When does a sale deed become null and void after registration ?Can it be invalidate by any clause relating to non payment of dues I am in the process of selling my flat and want to safe guard against non payment of dues from the bank. My purchaser has taken a loan from AXIS bank and i am not sure how soon the money will be given to me. Will a time bound clause for executing the payment be sufficient safeguard
Yes, there can be a time clause in the sale deed.
It can be void and null, if someone comes and try to prove that it has been obtained by fraud which is in itself very impossible or not payment of dues also at time.
The best part is that if the purchaser unable to pay the dues then no need to give him the advance money back (put that clause for sure on in the deed).
The sale deed must be executed by you only after the receipt of the total sale consideration, whether it has to come through the bank or through the buyer.
For now, you may enter into an agreement to sell and seek an advance payment from the seller.
The timeline for the balance of sale consideration could be agreed under this agreement to sell.
Axis bank is reputed private sector bank
2) demand draft in your name or bankers cheque would be given at time of registration of sale deed
3) sale deed would contain a clause that x amount has been paid to you
4) only on receipt of DD or bankers cheque you should sign the sale deed and register it
Since no sale is valid without passing of consideration , if the consideration money was passed then sale becomes ineffective.
However this is not so if a portion of it remains due and not the whole amount.
So when you recover the price then only sign in the sale deed and present it for registration.
In case I do not receive payment from bank after registration of sale deed what would be further course of events ,will the agreement still be valid and property pass on to the buyer or title of property still remains with me. I plan to have a clause in the agreement which will state that "this agreement is valid only after the agreed consideration is paid in 15 days time" will this suffice and be a sufficient safeguard for non receipt of dues
Hello sir , if the buyer fails to make the payment in due time as mentioned in the agreement , the agreement stands canceled .. You can file cancellation of sale deed in court , under such circumstances ..
there should be clause that in case balance payment is not received sale deed shall stand cancelled
Yes, please must include that part in the sale deed.
In case I do not receive payment from bank after registration of sale deed what would be further course of events.
Ans. You will have the option of filing a case for recovery of payment, against the buyer. The Agreement will be valid and the title once passed on title buyer, will not revert back to you.
Yes, the clause you propose to have, can be included in the agreement.
Hi,
Please make sure to get paid fully before /at the time of registration of the property as after the registration the title of the property will be vested with the purchaser.
The buyer will have to deposit the sale deed with the bank as soon as it will be available to him or bank representative may collect by submitting the payment receipt in the registrar office.You have nothing to do except asking for a copy of the deed for your record.
After the registration you will have only way out to file a money suit to recover the amount if any problem arise.
1. Sale deed should be registered only after receipt of the full consideration where there will be no question of dues in making payment.
2. You can execute an agreement assuring to sell your property on receipt of full payment with in a certain period of time but while registering the sale deed, you are required to receive the full consideration from the buyer.
3. A properly executed and registered sale deed can not be cancelled unless a cancellation deed is registered by both the parties duly cancelling the said sale deed.
1. You are mixing up sale agreement with sale deed.
2. You can mention in the sale agreement that the agreement will be treated as cancelled if the balance consideration is not paid with in a particular period of time.
3. However, while registering the sale deed, you shall have to mention that you have received thye full payment for which you are transferring the title of your property in favour of the buyer.
Please sign the sale deed only once you receive the DD and make sure that in the sale deed it is mentioned that this much amount has been paid to you.
Yes there must be a clause to the effect that if the balance payment is not made then the sale deed shall be deemed to be invalid. Make a clause for refund/ forfeiture of the previous amount after cancellation of the sale deed.
Regards
I would suggest not to go for sale deed until you reieve payment, generally you reieve money on the day of sale deed, so do this process simultaneously.
However you can put this clause you can put that contract is valied ... 15 days and if not paid the contract/sale deed is deemed to be cancelled/ invalid automatically
Clause for sale consideration: A clause stating the sale consideration or amount that is agreed between the buyer and the seller has to be included in the sale deed. The amount agreed between the parties has to be paid by the seller to the buyer during the execution of the sale deed.
The sale deed being without consideration conferred no title to the buyer since the same is void, illegal and in-operative and not binding on the vendor.
There is another remedy open to an aggrieved vendor that is to sue for recovery of the consideration. As per provisions of Section 55, sub-section 4 (b) of the Transfer of Property Act. 1882, on account of non-payment of the consideration the amount of consideration, he can file a suit for a charge in the property sought to be conveyed.
In case I do not receive payment from bank after registration of sale deed what would be further course of events ,will the agreement still be valid and property pass on to the buyer or title of property still remains with me.
I plan to have a clause in the agreement which will state that "this agreement is valid only after the agreed consideration is paid in 15 days time" will this suffice and be a sufficient safeguard for non receipt of dues.
It is the execution and the registration of the sale deed that effects the passing on of the title, the payment of consideration is not a sine qua non for the passing of such title.
It is open to the vendee to sue for possession and in that event, it is not open to the vendor to sue for cancellation of the deed and declaration thereof as void and protect his possession by means of a suit when only remedy open to the vendor is to recover the consideration.
It is open to the vendee to sue for possession and in that event, it is not open to the vendor to sue for cancellation of the deed and declaration thereof as void and protect his possession by means of a suit when only remedy open to the vendor is to recover the consideration.
There cannot be any sale without exchange of consideration.
An excerpt form the judgment by Allahabad high court in Rajendra Prasad Vs. Smt Babita Gupta; it was decided thus:
A condition that price shall be paid in a year provided that possession was given within that time does not invalidate the sale deed. If the price is not paid, the seller cannot on that account set aside the conveyance. He can only sue for the price ; and he will have a charge on the property for the unpaid purchase-money. This is a non-possessory charge as explained in the note under Section 55(4)(b) and it will not justify the seller refusing to give possession.
So you may consult your advocate and decide further course of action on this.