In 1979 stamp duty payable was only Rs 5 only
2) deed of confirmation can be executed by society and agreement entered into in 1979 annexed
3) deed of confirmation should be duly stamped and registered
Purchase agreement for the year 1979 (whether registration & stamp duty was mandatory in 1979)
I had purchased flat vide agreement dt [deleted] on rs 100/- special adhesive stamp entered between the society & us as this is collector plot given on 99 years lease to our society in mumbai , sion area . I have sold this flat in march 2020 & has already registered agreement for sale at mumbai . The buyer bank legal team has raised querry that our agreement done in 1979 is not registered so state bank of india buyer bank cannot provide loan . Querry : whether in 1979 was it mandatory to register sale agreement & pay stamp duty . whether state bank legal team is right or they are not entitled to ask for registered agreement of 1979 . if yes than what is other alternative now to resolve the issue so that buyer bank approves the loan . pawan sureka --- [deleted]
Asked 4 years ago in Property Law
Religion: Hindu
13 Answers
- Actually this order, which your bank is putting before was passed in the matter of Suraj Lamp & Industries (P) ... vs State Of Haryana & Anr on 11 October, 2011
- But SBI bank is wrongly referring this decision of Supreme Court of India, because this judgement also says that:
“Those who had already bought property through GPA before its judgement could use the documents to apply for regularisation of allotments and leases by development authorities."
"Nothing prevents affected parties from getting registered deeds of conveyance to complete their title. The said transactions may also be used to obtain specific performance or to defend possession under section 53A of TP (Transfer of Property) Act,"
Further " In order to ensure that GPA continues to serve its purpose, the court said its judgement will not affect the validity of sale agreements and powers of attorney executed in genuine transactions. "For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance."
The court further said that a person can enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings. In that connection he can execute an agreement of sale and grant a power of attorney that will allow the developer to further sell the property to prospective purchasers.
- And further, since you have purchased this property from the Society in 1979, it means , hence this judgement will not applied here , and the sale deed by a GPA holder is valid and accordance with above judgement which was passed on 11.10.2011.
1. No it was not mandatory in 1979
2. No , SBI should read the above said judgement carefully.
Sir , our Agreement was made on Rs 100/- stamp in 1979 . I have sold the flat & Registered new Agreement with Buyer . Now Buyer state bank legal team is raising point that our 1979 Agreement should be registered . GUIDE ME WHETHER LEGALLY STATE BANK CAN RAISE ISSUE OF AGREEMENT NOT REGISTERED IN 1979 OR CAN THEY SANCTION LOAN WITHOUT AGREEMENT REGISTERED IN 1979 . WHETHER DEED OF CONFIRMATION FROM SOCIETY IS MANDATORY & AFTER THAT REGISTRATION OF CONFIRMATION DEED IS LONG PROCESS . LET ME KNOW LEGALLY IF I HAVE NOT REGISTERED AGREEMENT IN 1979 CAN BANK REJECT LOAN PROPOSAL ON THIS GROUND THAT AGREEMENT WAS NOT REGISTERED IN 1979 . IN AGREEMENT RS 100/- STAMP IS FIXED .
Asked 4 years ago
1. On the basis of mere sale agreement no title is passed unless and until the sale deed si executed and registered.
2. Now since no deed was executed the title is not perfect.
3 now after so many years and change of hands in the meantime it is essential that you may make any of the seller or their legal representative to join as confirming party to the present deed.
1) bank can raise issue that agreement is not registered
2) deed of confirmation is necessary to confer clear and marketable title to property
3)bank can reject loan proposal on grounds agreement is not registered
- In 1979 , the document executed by the society was legal .
- Pls . read my reply as i mentioned above
A property cannot be bought or sold without registration. That agreement is not valid and has no value. Therefore a registered agreement should be made.
Loan will not be sanctioned as the previous sale deed was not registered with the registrar office.
Register was mandatory as per section 17 of Indian registration Act all over india
1. IF you have acquired property (anywhere in MH) from a Society (which is typically referred as a Tenant-Partnership Society), THEN agreement of sale is not permitted to be executed, BUT executes a "ALLOTMENT LETTER" which does NOT require Stamp Duty & Registration under section 41 & 42 of the Maharashtra Cooperative Societies Act, 1960.
2. Hence Bank is either ignorant or not aware of the above and hence is insisting of earlier Stamp duty paid Registered Deed, which is legally not required.
Firstly you should understand that the sale agreement deed will not confer the clear and marketable title to the buyer.
The sale deed only shall confer the title to the buyer as an owner of the proeprty.
As per Transfer of property act, sale deed of an immovable property should be mandatorily registered or else it will be invalid.
Therefore your sale agreement is not title document enabling you to sell the property as a vendor.
The bank is right in demanding the registered title document in the name of the vendor to enable him to process the registered sale deed in favor of the buyer.
The registered document is the authentic document to establish the title of the vendor to sell the property to a prospective buyer.
Do you mean to say that by mentioning the word agreement to sale you refer to the sale deed?
As per Section 17(3)(g) of the Transfer of Property Act, 1908, agreement of sale of immovable property of the value of one hundred rupee and upwards;” is one among the other Documents of which registration is compulsory.
The bank is right in rejecting the loan application of the buyer for want of registered document to confirm the title of the vendor as per the provisions of law.
You cannot agitate over this issue because you have committed the mistake in those days to avoid paying the stamp duty.
If that previous party do have any redevelopment agreement in favor of Landlord and Builder .
and it can be help full to under specific performance under the Specific Relief Act, 1877.
Registration Act, 1908
49. Effect of non-registration of documents required to be registered
No document required by section 17 32[or by any provision of the Transfer of Property Act, 1882] to be registered shall-
(a) affect any immovable property comprised therein, or
(b) confer any power to adopt, or
(c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered:
32[PROVIDED that an unregistered document affecting immovable property and required by this Act or the Transfer of Property Act, 1882, to be registered may be received as evidence of a contract in a suit for specific performance under Chapter II of the Specific Relief Act, 1877, or as evidence of part performance of a contract for the purposes of section 53A of the Transfer of Property Act, 1882, or as evidence of any collateral transaction not required to be effected by registered instrument.]
It look like we need to review your old documents from 1955 onwards of land and building till date.
society should execute registered confirmation deed for legal validity .
