As your registering the property without the original papers on the basis of certified companies yourself it must reflect each and every conditions of the sale and consideration this is the responsibility of the purchaser to provide complete consideration amount as per the agreement to sell and in case anything is pending to pay that must find a place in the agreement so that in future in case of any dispute you can claim the amount legally or in any case you can go to the court for cancellation of sale deed it is only possible when things are mentioned properly and in elaborate manner in the sale deed and all the clauses must be agreed by both the party
On registration of sale deed
Dear Sir/ Madam I am selling a property which is mortgaged with a NBFC and hence originals are with them. The Buyer of this property buying this place with the help of finance from his bank . As per buyer , his bank will be holding back approx. 15-20% of the total consideration on the day of registry as I will not be giving originals on the day of registry . They will release this amount when I give them originals , say a month after registry . Originals will be released post payment of my outstanding with NBFC and since the sale amount of property is much higher , outstanding will be fully settled with the amount received on day of registry. Infact the buyers bank has made the outstanding amount cheque in the name of my NBFC . Further as per buyer , in the registry document all amounts will be mentioned along with Cheque No and date BUT it will be spelled out that we have received the entire amount and that the buyer has received the originals and we have relinquished all rights of the said property. However in the registry document I would like the actual fact to be brought out that 15-20% of amount shall be paid on receiving the originals and that this amount is presently withheld by buyer's bank . To this , the buyer is not agreeing and rather saying that his bank will not agree to such a registry and that the bank demands an absolutely clean registry with no ambiguity whatsoever . My question : 1.) Why is it not possible to just mention the actual fact in the registry ? 2.) How do I safe guard my interest ?
Asked 4 years ago in Property Law
Religion: Hindu
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7 Answers
You are not receiving actual sale consideration at time of registration of sale deed
2) 20 per cent would be paid on receipt of originals . Sale deed should reflect factual position
3) don’t agree to fact that full payment has been received by you
4) don’t proceed with the deal
1. See in registry you have to mention that total consideration is paid and received otherwise there can be dispute over same as it is absolute document and in future also present buyer have to sale the property.
2.See you can hold payment till he handovers the original.
3.Also you should go for registration only after you receive NOC from seller bank.
You can also mention one line "subject to realisation of the cheque this sale deed will be valid otherwise invalid" and take all payment via cheque mention in payment schedule and let them write in it cheque has been given.
Don't give possession unless you get all payment DD from bank a reimbursement cheque normally that's get clear.
1. Without mentioning that "the full consideration amount has been received by the seller" , the said Registry will have no value in the eye of law. It will be deemed just like an agreement.
- Further if you will mention the actual fact in the registry, then also it will considered as an agreement only, and not a title deed.
- Further, if you will allow the buyer to write the same , without receiving full amount of consideration , then you may face some trouble in future , and will have no proof of part remaining payment.
2. If, buyer is not agree to pay the full amount at the time of registration, then he/bank should issue post dated Cheque/draft etc.to secure your interest.
1. A registered sale deed cannot be executed if the recital in the sale deed mentions that the full sale consideration is yet to be made.
This will not complete the sale transaction.
Hence the NBFC is not agreeing for this arrangement
2. You can make a separate agreement with the buyer in this regard stating that the original property documents shall be handed over only on receipt of balance sale consideration amount.
This document can be used as documentary evidence if necessary, in future.
1. You cannot make sales deed without paying full consideration because rectification of deed will attract payment of complete stamp duty again.
2. You can make a separate agreement regarding balance payment and get it registered with sub registrar.
