• Registering agriculture land Tamil Nadu

Hello. I am a seller.
1) Is it valid to accept a cheque as a payment mode for registering a land, with the cheque number clearly mentioned in the sale deed and with a specified date to encash?

2) Does the sale stand automatically cancelled if the cheque has bounces? If not, what do I need to do after a bounced cheque to nullify that transacation? Or is that a risk I need to live with? 

3) What needs to be included in the sale deed beside the cheque number to de-risk my position from an unwarranted situation..

I am sure the best option is to get a full DD amount but I know the buyer well and there is a disbursement dependency on a bank loan that requires him getting this sale done first and he is only able to part-pay at the time of the sale..
Asked 6 days ago in Property Law from Chennai, Tamil Nadu
Religion: Hindu
1. Yes, this arrangement works. However, execute a sale deed with respect to this land, post this cheque is encased.
2. No, it does not. That is why, I'm advising you to register this sale deed after the cheque in question is encashed. This way you mitigate the risk of cheque being dishonoured. 
3. As advised, go for sale deed registration after the ceque is encashed.  
Vibhanshu Srivastava
Advocate, Bangalore
4243 Answers
36 Consultations

4.9 on 5.0

Hi Good evening , if the cheque gets dishonoured the sale agreement gets null and void ..you can specifically mention the clause that if the cheque gets dishonoured the sale agreement will be canceled and the inital amount shall be forfeited by the seller..
Hemant Chaudhary
Advocate, New Delhi
2511 Answers
9 Consultations

4.8 on 5.0

1) insist on demand draft . Don’t accept cheque 

2) if cheque is dishonoured abd you ha ecplaced purchaser in possession of land you have long legal battle ahead 

3) there is generally a clause in sale deed that if cheque is dishonoured sale deed would stand cancelled 

4) if purchaser is availing bank loan then Bank can issued demand draft at time of registration of sale deed 
Ajay Sethi
Advocate, Mumbai
41429 Answers
2372 Consultations

5.0 on 5.0

1)  Yes.
2)You.can.make a.clause of payment.date along.with cheque.condition on.the sale.deed.that in case cheque bounce it gets cancelled.
Otherwise you have to.go.to.civil.court for the same.

3) all the payment terms and condition along with a clause.that in case.the cheque bounce for insufficient funds and payment is not made then the sale.deed stands cancelled
Shubham Jhajharia
Advocate, Ahmedabad
330 Answers

5.0 on 5.0

You have to intimate sub registrar by letter that cheque has been dishonoured on presentation and to cancel the registration of sale deed 
Ajay Sethi
Advocate, Mumbai
41429 Answers
2372 Consultations

5.0 on 5.0

In that case you.need to file.acivil.suit for.cancellation of sale.deed. sub-Registrar cannot automatically cancel.sale deed unless specifically mentioned in sale deed.
Also a Notice of cheque bounce is to be given to buyer if in notice period money is not.rerurmed then you can file for cancellation.
Shubham Jhajharia
Advocate, Ahmedabad
330 Answers

5.0 on 5.0

You will have to intimate the Sub-Registrar in case of a cheque bounce, even if you include a auto-cancellation clause in the sale deed. Even in such a scenario, I'm afraid that Sub-Registrar can go for cancellation/reversal of sale deed and it is highly likely that you might have to fight a long battle in the Court for cancellation of this sale deed. 
Vibhanshu Srivastava
Advocate, Bangalore
4243 Answers
36 Consultations

4.9 on 5.0

1. Sale deed is a deed for conveying the title of the property in question after receiving the consideration in full for the said conveying of title. It is a final document which registers the convey of title against the recorded consideration and is registered  after the same is received and nothing is left to future. So, no sale deed can be registered unless full consideration has already been received by the seller in any form i.e. cash, cheque or DD (which is treated at per with cash).

2. The sale deed which mentions non receipt of consideration in full on the date of registration is invalid and void at law.

3. the cheque is required to be cleared first before you can legally register the sale deed. otherwise you shall have to register sale agreement.

4. If he is able to make part payment, you can execute and  register  an agreement for sale.detailing the schedule of his payment and after receiving the entire payment, you shall be able to register the sale deed for the said property. Bank loan can be disbursed based on agreement for sale also and in most of the cases such loans are provided on the basis of agreement for sale only.

Krishna Kishore Ganguly
Advocate, Kolkata
17195 Answers
421 Consultations

5.0 on 5.0

1.No sale deed can be registered legally if the deal for conveying the title of the property in question is not complete i.e. the consideration is nor received in full. If such sale deed is registered, it will be treated as invalid ab initio as there will be no scope to record the receipt of the entire payment in the office of the Registrar thereafter

2. There is nothing called auto-cancellation of deed already registered before the Registrar, as per Registration Act of our Country.
 
Krishna Kishore Ganguly
Advocate, Kolkata
17195 Answers
421 Consultations

5.0 on 5.0

1. if the consideration is not received in full then the registration of the sale deed is not considered to be legal. 
2. As per the law of the land there is nothing like auto cancellation of the sale deed. 

Regards 
Anilesh Tewari
Advocate, New Delhi
6684 Answers
83 Consultations

4.9 on 5.0

1. Yes it is valid.
2. Cheque bounce does not cancel the deed rather u have to file a case u/s 138 of N I act for recovery or money suit or suit for cancellation of the sale deed.
3. Better take in money by DD or RTGS or NEFT for risk free transaction
Subhendu Ghosh
Advocate, Barrackpore
196 Answers

Not rated

1.  Yes it is valid provided the seller agrees for this arrangement.

2.  You may impose the condition for cancellation of sale deed in the event of the cheque getting bounced in the same sale deed and should apply for cancellation of the registered sale deed for the reason that the sale consideration has not been passed.


3.  You can impose the condition mentioned above and invoke the same if the cheque gets bounced.


You are right that the payment of sale consideration amount may be made by a demand draft  for which there is no problem whatsoever.
T Kalaiselvan
Advocate, Vellore
31526 Answers
338 Consultations

5.0 on 5.0

The bank return memo that the cheque was dishonored for the reasons stated therein should be sufficient for invoking the cancellation clause.

There is no necessity for a criminal complaint with the police nor any legal notice, however the legal notice may be kept as an option in the pipeline so that he would be given an additional opportunity to solve this problem.
T Kalaiselvan
Advocate, Vellore
31526 Answers
338 Consultations

5.0 on 5.0

Dear Sir,

To be honest, your decision is not correct. You may fall into danger this day or on any other day. Never try to show sympathy to anybody including your wife and son. Be straight forward in money transactions. Who said if cheque bounced automatically the sale deed will be cancelled. You are under the garb of eclipse. I do not want to tell you more because you have thousand and one reasons, but all them are incorrect.  Doctor never lie before a patient and lawyer never lie  to his client. 
Kishan Dutt Kalaskar
Advocate, Bangalore
845 Answers
5 Consultations

4.9 on 5.0

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