Hello,

Just make an amendment to the agreement and sign the same.

No the stamp duty is not required to be paid again.

Interest means that if the same is canceled by the seller then the interest on the principle amount is to be paid.

Regards

1) wait for expiry of agreement then extend it by mutual consent on same terms and conditions for period of 2 years

2) it need not be registered

3) as and when balance payment is made execute sale deed in favour of the purchaser

4) in the event of cancellation of agreement you have to refund the Rs one lakh received by you with agreed rate of interest

1. Yes, if the original agreement was registered then the agreement for extension of time also requires to be registered.

2. If the final amount to be paid remains same then CHT will also remain unchanged.

3.The agreement for extension of time does not attract stamp duty.

4.If the cancellation is done at the behest of the buyer then remove the clause of full refund with interest.

We entered into an agreement to sell commercial property. At the time of agreement purchaser paid earnest money of 1lakh, agreement mentioned that the transfer will be completed within five years from the date of agreement on payment of balance consideration. Now both of us want to extend by another 2 years. The agreement is not expired yet.

ANS: ANY AGREEMENT IS VALID ONLY FOR 3 YEARS. YOUR AGREEMENT ALREADY EXPIRED. GET NEW AGREEMENT.

Do we need to re enter and re register new agreement?

ANS: YES, REGISTER NEW AGREEMENT.

Since after extension the transfer date is postponed as well, so do I need to worry about any capital gain taxation?

ANS: DOCUMENTS TO BE LOOKED INTO MATTER NEEDS DEEP STUDY.

The purchased paid 80k as stamp duty at the time of agreement, on extension does he need to pay again the stamp duty?

ANS: YES, YOU HAVE PAY STAMP DUTY AGAIN.

Also one of the clause in agreement says that on cancellation seller has to refund the earnest money with interest of @....%, what does this interest mean?

ANS: IT MEANS THAT IF THE SELLER CANCELS THE AGREEMENT THEN HE HAS TO REPAY THE ADVANCE WITH INTEREST.

Section 17 of the Indian Stamps Act make it mandatory to for sale agreement to be

registered. Further various other laws like contract act and apex court judgement also have

reiterated the same.

Article 54 of the Limitation Act, 1963 (36 of 1963) reads as follows: “For Specific performance of a contract: Three years The date fixed for the performance, or, if no such date is fixed, when the plaintiff has notice that performance is refused.”

1. The practice is to write on the back of the agreement itself the parties mention that the date of execution of sale deed has been extended by 2 years which is then signed by both parties. No separate agreement is to be made.

2. For the computation of capital gain the date of execution of sale deed is relevant, not the date of agreement to sell.

3. No stamp duty is to be paid on extension of agreement to sell.

4. The cancellation clause implies that the earnest money has to be refunded with the interest quantified in the agreement.

1. You can execute a supplementary agreement and get it registered.

2. The Registration will not require any additional stamp duty but the registration charge will be minimal.

3. Why should worry about capital gain taxation? If there is a long term capital gain on your investment made upon the said property and after appropriating the development cost incurred on the said property and factoring the entire amount with the index, you shall have to pay the capital gain tax.

4. Refund of earnest money with interest at a particular rate means that you shall have to refund the earnest money deposited by him along with interest charged at the mentioned rate to the prospective buyer in case of cancellation of the said agreement.

Dear Client,

By amendment in sale agreement, period shall be extended. There`s no need to pay extra fees. OR apply for rectification of sale agreement , nominal fees payable.

Interest @ % means prevailing rate at the time payment due.

You need not enter into a fresh agreement.

You can renew the same agreement by making an endorsement at the backside of the first or the second page of the original agreement with witnesses attesting the endorsement.

The capital gains tax will be calculated only after the execution of registered sale deed.

On renewal, no stamp duty may be paid when the same is just endorsed at the backside of the present agreement.

If this agreement conditions was agreed then the seller is bound by the said condition.

Sir

It means there is a registered agreement for sale. so, you have to register the deed of declaration for extending the time. Generally, the term % means the banking fixed deposit interest.

Thanks