• Agreement to Sell process while purchasing a under construction flat

Hi,
I am purchasing a flat in bangalore which is under-construction and will be completed in next 3-4 months. I have done the "agreement to sell" with the builder and I want to know that whether I am going correct legally or not.
The e-stamp paper was bought by builder on my behalf for 0.1% of total value of Flat (apartment) as stamp duty. 
Following are the details on e-stamp paper:
1. Purchased by: my name
2. Description of document: "Article 12 Bond".
 Description: AGREEMENT TO SELL.
3. Consideration price: 0.
4. First party: my name. Second party: builder name.
5. Stamp duty amount: (0.1% of total value of Flat)
Are these details correct?

The e-stamp paper was already with stamp and signature of some multipurpose CO-OP. LTD (which is supposed to be notary stamp). It is not a standard circular stamp as "NOTARY GOVT. OF INDIA".
Whether this is a legally valid notary procedure?

Then the agreement content was printed on executive bond papers with e-stamp paper as first page.
Then I signed on the bottom of all pages including the last page along with one witness from my side.
Then the the person from builder side took the agreement copy to get it signed from the builder/GPA (head of the company). 
I got the signed agreement next day. I did not see the builder sign in front of me.
I asked one person from builder side to sign as witness in front of me and took the agreement original copy with me.

I have paid 20% of the total amount by cheque for which I got the purchase receipts from the builder.
Is this agreement process is correct legally or do I have to take any corrective measures?

Please give your valuable expert opinions/suggestions on this.
Thank you...
Asked 1 month ago in Property Law from Bangalore, Karnataka
Religion: Hindu

Hi, Process which you have undergone is valid one, Normally each Agreement to Sale has followed the Same procedure.

Pradeep Bharathipura
Advocate, Bangalore
4610 Answers
225 Consultations

4.5 on 5.0

You need go register this agreement to sale with sub registrar as it is mandatory.  Yes the process is correct but it will be only valid after registration

Prashant Nayak
Advocate, Mumbai
8308 Answers
11 Consultations

4.8 on 5.0

It is correct on.e-stamp notary sign is not there E-stamp seal is there.

Further after you and builder signed the agreement either it should be registered with the sub-registrar office or it should be notarized.

Shubham Jhajharia
Advocate, Ahmedabad
15317 Answers
63 Consultations

5.0 on 5.0

Did the builder get the sale agreement registered?

If not ask him to get it registered since he has collected the stamp duty also.

Rest other issues appears to be okay, however you may consult a local advocate and get his opinion on the relevant issues in this regard.

 

T Kalaiselvan
Advocate, Vellore
51445 Answers
612 Consultations

5.0 on 5.0

The stamp paper can't have signature of notary. Notarised stamp paper is the stamp paper which is verified by notary and signed by both parties in front of notary.  The stamp paper also consits stamps from govt as well as stamp vendor to project the date of issue and other details.  If this is an agreement to sale and involves transfer of innovation property then registration compulsory

Prashant Nayak
Advocate, Mumbai
8308 Answers
11 Consultations

4.8 on 5.0

This is usual process, not acc. to law but in habit. Make sure there must be two witness. There are 2 ways of notary either mere stamped with registration no on it and sign and other is entry in notray registration which bears standard notary. so nothing to worry except agreement duly executed.

It should be duly stamped, non registration dose not effects it much.

Yogendra Singh Rajawat
Advocate, Jaipur
9806 Answers
8 Consultations

4.6 on 5.0

No the agreement should be notarized the stamp seal is different.

Yes sale deed is required to.be registered and stamp duty on same has to be paid.

No it is not mandatory to register construction agreement.

Shubham Jhajharia
Advocate, Ahmedabad
15317 Answers
63 Consultations

5.0 on 5.0

Agreement must be registered as there are so many issues involved

Kishan Dutt Kalaskar
Advocate, Bengaluru www.kishanretiredjudge.com
3970 Answers
92 Consultations

5.0 on 5.0

It is necessary to peruse agreement for sale entered into with builder to advice 

 

you have receipts for payment made by you 

 

3) I presume POA is duly registered 

Ajay Sethi
Advocate, Mumbai
61317 Answers
3721 Consultations

5.0 on 5.0

Notarised document must bear notary seal , his number 

 

non registration does does not affect validity of agreement for sale 

Ajay Sethi
Advocate, Mumbai
61317 Answers
3721 Consultations

5.0 on 5.0

So this is an unregistered sale agreement but notarised.

If the notary signature is found then you can proceed, but for an unregistered sale agreement no stamp duty is required to be paid, you may confirm the same.

It is accomplished through a Sale Deed, while an agreement to sell implies future transfer. Risks are transferred immediately in Sale, whereas they remain with the seller in case of Agreement to Sell. A Sale is an executed contract, while an Agreement to Sell is an executory contract.

An Agreement to Sell includes matters like:

  1. Proposal to purchase and agreement to sell
  2. Detailed description of the property
  3. Proviso requirement of good marketable titles and no encumbrances
  4. Payment details including earnest money
  5. Delivery of original documents on payment
  6. Drafting of sale deed and registration of the same  if titles found good
  7. Method of delivery of property
  8. Refund of earnest money in case of improper titles
  9. Remedies for non-completion of sale on part of vendor including specific performance and bearing of expense of proceedings
  10. Forfeiture of earnest money, if purchaser fails to complete the sale
  11. Action if the property is affected by notice from government authorities.
  12. Production of tax related certificates
  13. Schedule description of the property
  14. Memo of consideration for earnest money received
  15. All other matters incidental to the proposed Sale

An Agreement to Sell thus shows the willingness of the parties to sell/buy a property in question and culminates in creation of the actual sale deed. It cannot be called a Sale Deed because it does not create any rights on the property for the buyer.

T Kalaiselvan
Advocate, Vellore
51445 Answers
612 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that the agreement is not in the non judicial stamp paper of 10, 50, or 100 which is the only legal documents having sanctity in the eyes of law and the same should be notarised in the presence of both the parties.
  2. i would advice you to execute a fresh agreement to sale and make sure the above formalities should be there.
  3. And please make sure one more thing that you include everything into the agreement as to for price which you have paid and the rest amount date on which it has to be paid and also the description of the GPA in the agreement.
  4. Now, if builder denies then for new agreement then file a suit for recovery of your money as you have proof of that or ask the builder to execute a new before the court of law.

Sanjay Baniwal
Advocate, South Delhi
3999 Answers
7 Consultations

5.0 on 5.0

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