• Sale agreement need to register for evidence ?

Do we need to notarise or register a sale agreement for the purchase of a flat under construction in Kolkata? The flat doesn’t exist yet so I think it doesn’t confer any interest at all. The builder has provided every money receipt with a revenue stamp . If there is dispute later, will there be issue in litigation against the builder if sale agreement not registered ?
Asked 4 years ago in Property Law
Religion: Hindu

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22 Answers

Sir the agreement to sell is just a promise of which specific performance from court and other relief can be sought it doesn't confer right. To have a strong agreement is important so make a registered agreement to sale.

Sir sale agreement is required in case of dispute as otherwise the oral terms agreed between you cannot be proved so of all condition there should a registered agreement and on nay default by builder it would necessary for you to have agreement to claim relief.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hello

The builder must have promised you a flat with certain specifications.the mo of rooms etc. This all has to be written down in black and white along with the due date of the delivery of the possession of the property. Also...the amount which has to be given...will be given after the possession has also to be specifically stated.

Therefore a registered sale agreement is necessary and should be made.

Regards

Rahul Mishra
Advocate, Lucknow
13760 Answers
65 Consultations

5.0 on 5.0

While you are correct that an ordinary sale agreement not itself transferring any right in the concerned property is not compulsorily registrable (see sub-section 2(v) of section 17 of the Indian Registration Act), the times, in the words of Bob Dylan, they are a-changing.

RERA is here and requires that every agreement of sale be registered in order for buyers to enjoy statutory benefits such as refund and compensation in case of issues with delivery.

You say this particular project is based in Kolkata, which means the West Bengal Housing Industry Regulation Act, 2017 would be applicable to it. This particular act is West Bengal’s adaptation of RERA. Although there are a few changes, crucially it too requires the registration of such agreements.

But as far as I know, it has yet to receive the President’s assent, and so as things stand it would be okay for you to not register it.

I hope you have your answer. Follow-up queries welcome.

Pulkit Chandna
Advocate, New Delhi
191 Answers
5 Consultations

4.9 on 5.0

Agreement for sale can be notarised

2) even if it is not registered it is admissible inevidence

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

1. An agreement to sell is not mandatorily required to be registered. More often than not it is not registered by the parties thereto. Either party is free to sue on the strength of the unregistered agreement.

2. Even if the flat does not exist yet the agreement becomes the charter of rights and liabilities of the parties.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

Though it is advisable to get the sale agreement registered to avoid future complications but it is not so important but get the agreement notarized. As per Section 49 of the registration Act is new and for the first time gives legislative sanction to the equitable doctrine of Part Performance. This section of Act is widely accepted on its own merits that a suit for specific performance can be lie on the basis of unregistered agreement to sell and can be admissible as evidence. The proviso of Section 49, which was an unregistered document, could be received as evidence of a contract in a suit for specific performance.

In case the builder back tracks on agreement terms and conditions unregistered agreement can be looked into as evidence for specific performance as such you can just get the agreement notarized it's sufficient

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

1) You better sign MOU that is called "Agreement to Sale" and that you can register it with Registrar for your safety point of you.

Pay money 10% only for construction completed floor plan that means you can get flow plan of work done and after completion of that particular work you have to pay that much 5 or 10% amount.

Don't go for sale deed immediately.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

It is always good to have sale agreement notarized and registered it does not make any impact and payment of stamp duty to be paid at the time of registration as the amount of registration stampede at this moment will be reduced from the final is stamp duty and only remaining part of a stamp duty is required to be paid at the time of registration and this also makes seller obligately to sell the property to the buyer otherwise a special performance of agreement can be initiated against the seller if he is in default to sell the property within the specified time period.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Any written and oral agreement is legally enforceable.

Abhilasha Wanmali
Advocate, Nagpur
1022 Answers
1 Consultation

4.8 on 5.0

Check documents through lawyer before buying any under construction flat.

1.Title deed

2.Sanctioned Building Plan

3.Occupancy Certificate

4.Tax Paid Receipts

It is always advisable to have an agreement in writing. It precedes the execution of a sale deed. This agreement is signed and executed by the seller and buyer on a non-judicial stamp paper. It has legal value and if need be can be produced as evidence in a court

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

1. You should register your sale agreement to counter any future allegation of the builder about the genuineness of the sai9d agreement if any.

2. Im any case.; the styamp duty to be paid for registering the sale agreement will be adjusted against the stamp duty to be paid while registering your sale deed.

3. Registered document/sale agreement will certainly have better accetability before the Court as per law.

Krishna Kishore Ganguly
Advocate, Kolkata
26603 Answers
726 Consultations

5.0 on 5.0

Sale agreement ought to be registered even though flat is not in existence

This is to prevent the builder from creating third party interest in the flat sold to you

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Hi, if you are purchasing it from the builder , then a BBA (builder buyer agreement ) has to be executed ... You can get it notarised instead of getting it registerd , it will hold legal authenticity in court

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

A. Generally, Sale Agreement need not be required registration unless possession is delivered. However, sufficient stamp duty must be paid.

B. As per the Real Estate Act, 2016, the registration of Sale Agreement is mandatory under Section 13 (1) of the Act, it is stated that A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.

C. You need to get clarity as to whether this project has been approved by RERA Act or not?

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

Sir the signature has to be before the notary . So get same before the notary in US.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

You can sign the agreement have it attested before Indian consulate

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Yes sign it there before a public notary or preferably Indian Consulate

Grant a POA to someone in India who can register the signed document on your behalf

Notary serves no purpose

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

You can get the same notarized through us consulate because to get it notarized in India you need to be present before notary in India. So approach the US consulate and get it notarized their

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

1.You can get the said sale agreement sent by your lawyer in India with the signature of the developer and get your signature apended thereupon notarised by the appropriate officer of the local Indian Consulate.

2. Signature is notarised by the notary public noting that the said signature has been apended before him. So, you can not get any document signed by you in USA notarised in India not being present before the Notary Public.

3. If you manage to get any such document notarised, it can be challenged later on to be declared as invalid since from your passport it will be evident that you were not present before the Notary public when he has notarised your signature.

4. The Notary Public will also eventually loose his license.

Krishna Kishore Ganguly
Advocate, Kolkata
26603 Answers
726 Consultations

5.0 on 5.0

The unregistered sale agreement is not valid in law. You cannot enforce the same in court of law in case of any dispute arises in this regard at a later stage

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

Can I sign those in the us and then have someone get that notarised in India ?

An unregistered sale agreement is not valid in law.

Signing the unregistered sale agreement in US cannot be enforced in India

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

The same has to be notarized in the consulate only, in your presence

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

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