Can MOU regarding property be registered
I have recently entered into a development agreement with a developer for my tenanted property. Under the said agreement the developer will be giving me a certain area in the form of two flats in the building to be constructed at his cost including stamp duty registeration fees and other taxes. It has been registered. Now a separate mou is made for details of the flat, its amenities, parking. There is no money consideration except the two flats for a certain specified area.
The developer says the mou cannot be registered. I have a contrary view. How can the document I.e . mou have a legal sanctity. Why cannot this document be registered, if at all. ?
Asked in Property Law from Pune, Maharashtra
Memorandum of understanding (MoU) is just a means for two parties to reach a decision. It is used to gauge the intention of the transacting parties before a deal is officially signed between them and doesn't grant either of them any rights.
If an MoU has been drawn for consideration, that is, exchange of money, the document would become binding on the parties. In your case there is no money consideration in MOU, hence no need to register it.
You can enter into supplementary registered agreement regarding details of flat, amenities to be provided, parking slots to be allotted etc.