• Unregistered 1st agreement

In chain of documents the 1st agreement between builder and owner is not registered (agreement in 1995). Afterward second agreement is registered. Also proper stamp duty was paid fot 1st agreement in 2018 along with penalty and broker is saying adjucation is done, so there wull be no problem. 

Should i go ahead ? SBI denied for loan as 1st document is not registered. Also one lawyer said, since adjudication is done title is clear as per new stamp act. Kindly clarify.
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

Lawyers are available now to answer your questions.

16 Answers

1. If the deficit stamp duty is later paid and the irregularity is cleared then there is no problem.

2. It is not clear whether both the agreements are made between the same parties.

3. If the anwser the answer is yes then there is no issues in going ahead with the deal.

4. However in the title opinion of properties it is very essential to go through the contests of the denouements . Since I can not see any of these I ca not make a proper comment on this.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

There will be execution problem in this agreement and that is the reason that SBI is not ready to provide any loan on that as they stamp duty and registration of that first agreement was done in 2018 this is not worth risk taking

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Sir since the proper stamp duty if after adjudication paid in 2018 there shall be no problem as such the title is clear. See the order of the authority and further see document can be registered only in 4 months of signing it so only duty is paid not registered that is why sbi denied so better if first owner builder available a confirmation deed can be signed otherwise there won't be issue as such.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Since that is the case get all the documents verified like share certificate and property tax bill and both the agreements, land revenue record, joint developer agreement by a lawyer in person if they are proper you can go ahead with unregistered first agreement there won't be any issue. There are many old flat houses wherein the old agreements are not registered..Though it effect the value of the property and can help you to bargain further try with other banks if bank give loan that is better as when bank seal is there on some property that is better for resale.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. If you approach banks, they will obviously insist for registered documents

2. If you are funding yourself from your own funds then you wont find problem

3. Issue a public notice informing about the 1st agreement being duly stamped but not registered

4. Then in your agreement for sale, attach a certified true copy of first unregistered agreement. So with your agreement, the first agreement will also come in registration records and public will deemed to have knowledge about it

5. I do not find any provision in the registration act wherein it is stated as to what can be done if one of the parties to the agreement is not available for registration

6. In such cases mostly the remedy lies to approach the civil court and seek a declaration of ownership and direction to registrar to register the document unilaterally without insisting for the party who is not traceable

7. But bear in mind if in future you wish to sell this property and your buyer applies for a bank loan, then again his loan may be refused if the first chain agreement is unregistered

8. If your intention is end perpetual use, then you can take a chance of not seeking a declaration from court. That is you can do away with requiring your seller to seek a declaration and direction from the court as stated above

Yusuf Rampurawala
Advocate, Mumbai
6878 Answers
79 Consultations

5.0 on 5.0

Well, then it is advisable that you get consent of legal heirs of both Saxena and varun.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. The agreement to sell is not required to be registered. However, the sale deed requires mandatory registration.

2. No opinion can be formulated in a matter of this nature without a threadbare perusal of the documents. Consult a lawyer from this portal, if you wish so, with a copy of the documents.

3. Mere adjudication does not mean that title is free and marketable.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

Sale deed has to be registered to confer clear and marketable title to property

2) un registered agreement is in admissible in evidence

3) registration can be done within maximum 8 months

4) it cannot be done after 23 years

5) deed of confirmation can be executed by builder

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

If builder and Mr Saxena are not available deed of confirmation cannot be executed

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

Hi, it will be more satisfactory if you have the details of ownership of first buyer .. However, it is still safe to proceed

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

You can go ahead since the adjudication is done.

Abhilasha Wanmali
Advocate, Nagpur
1022 Answers
1 Consultation

4.8 on 5.0

This is my response to you:

1. You will need to make attempts to search for them;

2. Send out an advertisement in the newspaper;

3. Try to locate them at their last known address;

4. Collect evidence of your efforts (that is the acknowledgements);

5. Then appoint a lawyer, obtain a title clearance certificate;

6. Then go to the bank, state that you took all efforts and could not find the original owner;

7. Also since the second agreement is registered the title is clear.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Firslty, as per the law of property it is mandatory to register the agreement.

Secondly, but, if the same has not been registered then you may have option to get it registered now with penalty charges which you have done so.

Thirdly, try to convince the bank by sayin as per law it is valid there is not incummberance over the property.

Fourthly, approach some other banks also as every bank has their own way of approving the loan.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

The mistake has been rectified , i.e., the stamp duty has now been paid and the document has been adjudicated, hence the title is clear now.

There should not be any problem in this regard.

SBI will be finding some reason to reject the application.

You may ask them to get it clarified through their panel advocates.

Alternately you can look for some other organisation for obtaining loan.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

1st agreement was between builder and mr. Saxena and second between mr saxena and mr varun. Now builder and mr saxena both are not available as agreement was done long ago in 1995

Even though they both are not available how did you get the document adjudicated?

Well if the registrar has accepted the adjudication and has got the same registered then it should not pose any problem now.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

Hi,

You may go ahead as the stamp duty is paid for first agreement.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer