• Sale agreement validity

Sir, Iam from chennai Iam planning to purchase a property
I identified one property and checked it for any encumbrances. In that in 2002 the registered sale agreement was signed between owner and buyer stating that the total cost of the property is 2lakhs and 50k was paid by the buyer balance yet to be paid during registration of property. But registration was not happen between them. But In 2006 the land was registered to other buyer. The status of the sale agreement is live it reflected in EC. Vendor says that the agreement is not valid so you can proceed. Shall I purchase this property what are the documents I have to ask from the vendor before proceeding registration
Asked 1 year ago in Property Law
Religion: Hindu

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16 Answers

If registration was not done as purchaser failed to make balance payment was agreement for sale cancelled ? 

 

2) has any suit being filed by purchaser ? 

 

3) contact a local lawyer 

 

4) get certificate from lawyer that title is clear and marketable then only purchase the property 

Ajay Sethi
Advocate, Mumbai
79719 Answers
4806 Consultations

5.0 on 5.0

See ask for a cancellation of sale agreement from the vendor mutually signed by seller and the other buyer.

Also get title of the property verified.

see the cancellation agreement is must as there can be unnecessary litigation and change of entry should also be there,

Shubham Jhajharia
Advocate, Ahmedabad
25521 Answers
115 Consultations

5.0 on 5.0

1. Seek cancellation document or order from seller.

2. Search before the jurisdictional court any litigation in regard to property pending or not engage local lawyer.

Shubham Jhajharia
Advocate, Ahmedabad
25521 Answers
115 Consultations

5.0 on 5.0

Don’t purchase the property 

 

2) you have to take search in court records whether any cases are pending in respect of the said property 

Ajay Sethi
Advocate, Mumbai
79719 Answers
4806 Consultations

5.0 on 5.0

Dear Sir,

The following documents are to be need before registration of the property.

MANDATORY REGISTRATION

Section 17 of the Indian Registration Act, 1908 provides for mandatory registration of certain documents. Those are as follows:-

  1. Gift deed related to an immovable property;
  2. Non-testamentary instruments:                                                                                                  a. purporting to creation, assignment, declaration, extinguishing of any interest in any immovable property worth Rs. 100 and above;                                                        b. which acknowledge receipt or payment of any consideration for creation, assignment, declaration or limitation of any right, title or interest;
  3. Lease of immovable property for any term exceeding one year or reservation of yearly rent;
  4. Contracts for transfer of immovable property for a consideration for purpose of Section 53A of Transfer of Property Act, 1882 is executed on or after the inception of Registration and Other Related Laws (Amendment) Act, 2001.

Failing to do so will result in transfer being invalid.

OPTIONAL REGISTRATION

But not all documents have to be registered. Section 18 provides for optional registration of some documents such as:- (See here)

  1. Adoption Deed
  2. Instrument relating to shares in joint stock company
  3. Debentures issued by joint stock company
  4. Will
  5. Lease of immovable property not exceeding 1 year
  6. Document of a past transaction
  7. Power of Attorney with respect to movable property
  8. Decree or order of court comprising an immovable property valued below Rs. 100
  9. Certificate of Sale granted
  10. Agreement of Mortgage
  11. Promissory note
  12. Instrument of partition by Revenue Officer
  13. Grant of immovable property by Government

WHEN TO REGISTER DOCUMENTS?

According to Section 23 of The Registration Act, 1908, all documents except a will have to be presented for registration within 4 months from the date of execution. If a document is executed by several persons at different times then that document has to be presented for registration and re-registration within 4 months from the date of each execution (Section 24 of The Registration Act, 1908).

If due to any urgency or unavoidable accident, any executed document or a copy of decree or order is not presented within 4 months but it is presented after its expiry will be accepted for registration provided that 10 times the amount of registration fees is paid and delay in presentation does not exceed 4 months.

Application for such a step has to be made to Sub-Registrar who will forward such application to the Registrar to whom he is a subordinate (Section 25 of The Registration Act, 1908). If a document is executed outside India by any or all of the parties and is presented after expiry 4 months then it will be accepted for registration provided that it was executed and presented for registration within 4 months after its arrival to India (Section 26 of The Registration Act, 1908).

 

Netravathi Kalaskar
Advocate, Bengaluru
4953 Answers
27 Consultations

4.8 on 5.0

Don't transact unless the 1st sale agreement is cancelled. 

Regards 

G.Rajaganapathy 

Rajaganapathy Ganesan
Advocate, Chennai
1804 Answers
8 Consultations

4.9 on 5.0

Agreement is old enough , almost expired. No issues.

Yeah! This you should check if any case is pending. For that take assistance for local lawyer. Also get in written from builder that property is not subject to any litigation.

Other buyer enjoying peaceful possession form 2006 than I don't think any case pending. Still take this from builder in writing.

 

Yogendra Singh Rajawat
Advocate, Jaipur
21407 Answers
31 Consultations

4.4 on 5.0

HI,

The status of suit can be found online by the name of parties through website of the local court. As far as the sale agreement is concerned, it should be cancelled by the parties. You are suggested to ask the complete chain of the property and original title deed from the seller. 

Ganesh Singh
Advocate, New Delhi
6542 Answers
13 Consultations

4.5 on 5.0

The registered documents of sale deed. Also go for indemnity bond. 

Prashant Nayak
Advocate, Mumbai
22633 Answers
49 Consultations

4.4 on 5.0

The property suit, if any, would have been filed at the district court where the property is situate. Check with the previous buyer and also at the court to confirm if any suit was filed.

Swaminathan Neelakantan
Advocate, Coimbatore
775 Answers
10 Consultations

4.9 on 5.0

The agreement for sale is valid for three years. If there is a negative clause in the agreement, Better contact local property lawyer for verification. 

Mohammed Mujeeb
Advocate, Hyderabad
18986 Answers
13 Consultations

4.5 on 5.0

Dear client 

I don't think that there would be any problem purchasing the property. As I know if the agreement of sale was very old and after that the same property was sold to some one else and it shows no dispute on property by buyer of first agreement of sale then this property must have a clear title for confirming that 

The easy way would be apply for home loan and let the bank or home loan company inquire about the property if there is any dispute or case on property they will reject the loan and if they agree to give loan on that property then it has clear title you can go ahead with purchase. 

Mohit Kapoor
Advocate, Rohtak
10685 Answers
7 Consultations

5.0 on 5.0

If it is a breach of contract, that he entered into an agreement but did not fulfill the the same. Then can file a civil suit for the breach against the seller. But every agreement is time barred. You need to see if the time is over then you can purchase the property. 

If in case he only want refund then he can file suit for recovery of the money only against the seller. 

 

If you are interested in purchasing the property, you should either take the confirmation that there is no more dispute then failure to enter into contract and you shall not be liable if any demand/ due arises from the present property. 

Amol Chitravanshi
Advocate, New Delhi
220 Answers
1 Consultation

4.0 on 5.0

You may have to check if there is any civil suit is pending on it.

Moreover though the sale agreement is invalid, since there is an encumbrance, it would be better that this encumbrance may be cleared or else you may not get loan from bank or you may not be able to sell it to a third party at a later stage because he may face problem to obtain loan due to this persisting encumbrance.

Therefore you may insist the owner to clear this encumbrance.

 

T Kalaiselvan
Advocate, Vellore
69750 Answers
951 Consultations

5.0 on 5.0

It is not your problem to know about the pending cases against this property.

You can ask your vendor to cancel the registered sale agreement before executing a registered sale deed in your favor.

 

T Kalaiselvan
Advocate, Vellore
69750 Answers
951 Consultations

5.0 on 5.0

Before purchasing a property, check the patta, chitta, adangal, manual A register and also EC from th Govt., if all these are in the name of the present buyer, then check whether the property is kept for any loan or mortgage and like.

to the point, once a sale agreement is registered and the conditions implied in it is not executed properly then it should be cancelled properly. if not, then there is some issue for sure.

if u want to buy that property go for a legal opinion from an advocate. he will let you know clearly whether to buy it or not.

because after verifying all those relevant documents only can tell whether u can buy or not.

Chandhini
Advocate, Chennai
8 Answers
1 Consultation

4.0 on 5.0

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