Sir the registered agreement shall protect.you also if they dealy then 3 months you can cancel the agreement and forfiet the advance paid by them. There can be clauses in agreement to protect you.
Land Sale _ Is a registered agreement before sale deed safe ?
Hi, I am the seller of empty land parcel. Buyer is requesting for a registered agreement to buy the land after 3 months. They are asking the same since they are looking to avail a project loan from bank. However, a registered agreement would get me into trouble if they keep delaying the sale. Am I correct ? Is there any other alternative other than registered sale deed for me to be safe.
Asked 7 years ago in Property Law
Religion: Hindu
19 Answers
1)un regsitered agreement for sale can be entered into with purchaser. take x amount as earnest money
2) bank can sanction loan on basis of un registered agreement for sale
1. There is no disadvantage in making a registered sale agreement provided you keep your the interest protected.
2. So incorporate such terms like time frame within which the deal is to be completed and the default clause if the time frame is not honoured by the buyer.
3. Do include the cancellation clause if the sale is not completed withing the time frame.
Dear Client,
Nothing as such, purpose of agreement to sell is, in case either party turn to his commitment, than agreement can be performed by court. You can include in the agreement that if party failed make payment in 3 months than deal will expire + forfeiture of advance.
- As per the information mentioned in the present query, makes it clear that you can go for the registered agreement to sale, but you are little afraid of any future problem.
- Sir, in fact, I would advice you to go for the registered agreement to sale as this would take care of the interest of both the parties.
- You and the buyer can include the clauses in it after deciding mutually the outcome of the same.
- And any violation by either of the parties, will give the right to the other one to enforce the performance of the agreement as per law.
- I think, you should not be afraid/ worry of anything if you happen to go for the registered agreement to sale.
1) Agreement to sale is the best alternative before sale deed. Because in Agreement to sale there are various options of terms and conditions that can be avail both buyer and seller.
2) If you want same I can draft for you at reasonable rate.
1.An agreement to sell is an important document in the process of sale and purchase of property. This agreement contains the terms and conditions agreed upon between the parties, and binds them. An agreement to sell is the basic document on which a conveyance deed is drafted. It is always advisable to have an agreement to sell in writing.
2.The agreement for sale is valid for three years. If there is a negative clause in theagreement, say, the buyer has to registerthe property within three months, then, the limitation is extended by such period.
3.If the documents are not registered, banks take into account costs mentioned in both agreements for sanctioning a loan.
In the absence of registration the only way is sale agreement . It is risky as many end up in courts . Enter into an agreement specifying the duration and compensation. Take cheques and promissory notes .
Mention clearly about the time frame in registered agreement. if fails to keep up the period, agreement looses its value . so make clause with necessary conditions.
Thanks for the answer. You say that registering an agreement with proper time line and cancellation clause will be sufficient. However, I hear from few lawyers that even with proper clauses and timeline mentioned in the agreement, if the buyer does not buy the land within the mentioned period, in court, the agreement could be valid for 3 years to 13 years. If this is the case, I will not be able to sell the land till the case is dismissed. Please let me know if its true and when it holds true.
Asked 7 years ago
it all depends upon wording of agreement for sale
2) if time is essence of contact and fail to make payment with stipulated period agreement can stand cancelled
See if in agreement specific terms are mentioned same is binding on both the parties in case you extend time.for.buyer then this issue arise.
1) That's why I have guided you to make agreement to sell so you can have other sale option in front of you later.
Wrongly advise. If you are willing to perform your part in given time but other party fail to do so, agreement expires by serving notice.
Dear Sir,
You are 100%. Many real estate people doing the same thing. They just get sale agreement in their favor and start playing with land owners. You may go for that option if the buyer is ready to pay more than 60% of the sale consideration.
Registered sale agreement is the valid form of selling the property.
Unregistered sale agreement cannot be enforced in the court of law.
Hence better enter into a registered sale agreement to tackle legal hassles in the future.
No doubt if there is no specific time period is mentioned in the registered sale agreement then it will be valid for a period of three years from the date of its execution.
But if you mention the time period in it then you can argue that the time is essence of contract and get the case decided in your favor.
1. How would it get you into trouble? Instead you can then sue the buyer through a suit for specific performance and even forfeit the advance paid to you if he does not honour the agreement.
2. Unless there is injunction granted on the sale of land by the court you will be free to sell it. If buyer does not honour his contractual obligations under the agreement to sell then he cannot get injunction.
Make proper averments in the said agreement also keep compensation clause in the same.
1. A "conditional" agreement can be registered with strategic time-bound truncating clauses, for the deal.
2. Usually the Banks require some agreement, before they can grant any loan, by the property. So till you receive entire money, do not execute the Sale-Deed.
Keep Smiling .... Hemant Agarwal