• Who keeps the original sales agreement upon cancellation of deed?

Background - Booked a under-construction flat Jan-14, paid stamp duty and registered sales agreement May-14, construction grossly delayed, cancelled due to delay, builder is refunding money, once I get the full refund we will go to the registration office to cancel the deed.

Question - Who keeps the original sales agreement after cancellation of deed?

Concern - I believe I need the original sales agreement and cancellation deed to get a refund of the stamp duty I paid in May-14. However, builder is asking to keep the original sales agreement with them before deed cancellation.
Asked 4 years ago in Property Law
Religion: Other

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16 Answers

1) What Builder will be benefited from your sales deed, the property which is already sold to you which was belong to him.

2) Keeping agreement copy with him for his safety, because property is still on your name.

3) If you have any fear regarding he will not refund your stamp duty money etc, you can make affidavit that sales deed is hand over to builder and on cancellation of deed he is going to hand over refund of stamp duty amount.

4) There is no hard and fast rule or law who will keep the sale agreement for cancellation purpose, actually you are returning property to builder again, How builder kept trust on you with out paying full amount sold property on your name.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Builder will keep the original sale deed after execution of deed of cancellation

Ajay Sethi
Advocate, Mumbai
87892 Answers
6207 Consultations

5.0 on 5.0

1.After cancellation your right ,title and interest in the proeprty relinquishes and the developer recover his right over ot once again.

Sounder natural corollary he has rightful demand to ask for the original agreement. However there isnot much issue involved in it as the other party can always obtain a certified copy of the agreement and keep t with him.

If you need the same to seek refund then request the builder not ot insist on original agreement.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Upon cancellation of deed in normal condition the sale deed remains with the builder as the builder after making payment in respect of cancellation cannot let you have sale deed because thay can be adverse for him.

The original instrument(sale deed) is required to take refund so you can execute a Affidavit in favour of builder stating the purpose of keeping sale deed after its cancellation.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. Ideally speaking the original deed is to be destroyed after the cancellation deed is executed and the stamp duty is refunded, but you can return the agreement to sell to the builder after the cancellation deed is made.

2. However, under no circumstances the original agreement to sell is to be returned to the builder before the agreement to sell is cancelled through a cancellation deed. The buyer should carry the original agreement with him to the office of sub-registrar and once the cancellation deed is made then only it should be returned to him.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

Original sale agreement is in whose custody. If you have original sale agreement after cancellation of the agreement you can give only agreement to builder and through cancellation deed you can seek for refund of stamp duty. Builder may need the agreement so that in future he can sell his property to prospective buyer. Since its registered and cancelled you need not worry once it's cancelled.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

If you are seeking a refund of the stamp duty paid by you, you need to present the original deed on stamp.

In this scenario, you need to retain the original agreement/deed so as to enable you to apply for refund of stamp duty paid and discharge necessary formality in the said direction.

Discuss this with the builder and inform him that you need the original document so that you may apply for processing of refund of stamp duty.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Client,

After registered cancellation deed, original agreement to sale becomes useless, So, whoever keep it, no matter.

But for refund of stamp duty, original will be required.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Hello,

Just keep the original cancellation deed with you once the same is done and also keep the original sale agreement with you so that the same is not misused or alternatively the same can be destroyed in presence of both the parties.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. Apply, duly for certified copies of the original agreement and the cancellation agreement alongwith the Index-II, with the registrar of sub-assurances.

2. Using the above, conduct the application for refund of stamp duty, paid on the original agreement.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

builders have good contacts in stamp duty and registration office

2) request the builder for assistance in obtaining refund of stamp duty paid by you

3) agree to pay their charges .

4)if builder refuses then request him to permit you to keep originals till refund is received by you . undertake to return the original documents on receipt of refund

Ajay Sethi
Advocate, Mumbai
87892 Answers
6207 Consultations

5.0 on 5.0

In that case what you can do is submit the original to the registrar office and ask the builder to get a certified copy to sell it to future prospective buyer. Every state will have its own rules so as per your reply this is the way you both can work out.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Question - Who keeps the original sales agreement after cancellation of deed?

The original sale agreement shall stand cancelled automatically and in that place you can have the original registered cancellation deed.

I believe I need the original sales agreement and cancellation deed to get a refund of the stamp duty I paid in May-14. However, builder is asking to keep the original sales agreement with them before deed cancellation.

After the original sale agreement is cancelled, you can seek for refund of the stamp duty based on the cancellation deed, you can submit the photo copy of the original sale agreement, if need be.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

My comments below and one follow-up question: upon executing the deed of cancellation, is there any sort of annotation (scratching out / stamping as cancelled etc) that is done on the physical original sales agreement to indicate that it is cancelled as of such and such date, making it unusable for any purpose other than stamp duty refun

Once a cancellation deed is executed and registrar then the original sale agreement deed stands cancelled, you will get an entry in the EC about this, hence this cannot be used for any purpose, hence there is no need of any such physical cancellation..

confirmed with the IGR office that they do need the originals and not certified / true copies of both the sales agreement and cancellation deed.

If that is the case, you can retain the original sale agreement deed for production before the IGR seeking refund of the stamp duty paid on it.

I am including it in the deed of cancellation itself that post cancellation on the spot I will keep the agreement for the sole purpose of stamp duty refund.

You may make an endorsement to that effect, however it may not be necessary.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

#feedback

Thanks for the appreciation, let me know if further help is required

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

its you who need to have the cancellation deed the builder can take a certified copy of deed for the IGR deparment

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

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