It's recommended to take DD and not cheque as a payment mode from the buyer on the date of registration of the property through sale deed.

Cheque is subject to realisation 

insist on demand draft or bankers cheque or funds transfer by NEFT or RTGS 

Cheque is subject to realisation 

insist on demand draft or bankers cheque or funds transfer by NEFT or RTGS 

Dear Sir

It is advisable that you take DD or ask for a NEFT transfer instead of cheque.

These methods are generally safer and have less room for fraud.

Thank you

No. Only cash or DD.

Regards

G.RAJAGANAPATHY

High Court of Madras 

Registration  is of sale deed is not concluded on payment  of cheque. The sale deed has to be drafted adding clause that the sale deed will be finalized only subject to cashing of the cheque. Receiving and registering sale deed without such clause will be risky for seller. He cannot afterwards recover the sale consideration.

No, not at all advisable. If the cheque bounces later, you have to seek legal remedy through court. Better insist on bank draft, check with the issuing bank if it is  genuine before registration. Or ask for electronic transfer just before registration.

If the sale consideration amount is paid through cheque then you may insert a clause about validity of registration subject to realization of the cheque. 

It will protect your interests. 

If it bounces then it may be an issue. Better is rtgs or dd. 

If the cheque is not encashed, the sale deed becomes void as it is the condition precedent for validity of sale deed. Possession of property is to given only after receiving payment  under cheque.

Terms of contract are sacrosanct and binding on parties 

it is better to take demand draft or bankers cheque from buyer 

There can be a clause in the sale deed stating that if the cheque payment is not realised, then the sale deed automatically becomes Null & Void as also the possession of the house will be handed over to the prospective buyer only after the payment is received in full.

If there's sufficient money in the Bank Account, then obtaining DD will not be difficult. My personal suggestion to you is to receive the DD first and then only execute the sale deed in favour of the buyer.

Hi, it is better you can accept the money through RTGS. If you accept the cheque then it was dishonored, then you need to file a suit for cancellation of the Sale Deed and you are in trouble.

1. not advisable

2. take a DD or pay order

3. if buyer insists on cheque then do take a registered POA from the buyer so that in the event he defaults, you can use his POA to enter into a deed of cancellation of the sale deed which would be registered between you and the buyer

There is no legal infirmity to insert the desired clause in the sale deed and you can also withhold the delivery of possession of the property being sold vide this sale deed until  retaliation of the cheque amount paid towards the sale consideration. 

If he has agreed to the conditions and signed the deed then he is bound by the said stipulation. 

- If there is no bank involved then you should take precautionary step at the time of registration , and don't accept the cheque instead of a draft or prior payment through NEFT etc. 

- As per law if the said cheque will bounce then the sell deed executed by you will not cancel on this ground , specially when you have received some part payment out of this cheque. 

- Further for the recovery the cheque amount you will have to approach the court under section 138 of N.I. Act. 

Dear Sir

Such transaction are best not done through cheque payment.

It would be better if it was done by DD, NEFT or any other payment method.

Thank you

No, it will not be tenable. Please follow the advice given earlier.

absolutely no.

If you apply Bank loan, then even Bank also gives DD on day of registration. 

So ask for DD.

The Sale Deed does not become VOID by cheque dishonour. 

You have to enter legal arena. 

but if you still want to take cheque then add condition in Sale Deed for possession after realization of cheque and add heavy penalty for cheque dishonour.

Yes you can do the same 

No, not advisable.

You need to get the payment through either of the following: DD / RTGS / NEFT and not Chequue.

In sale deed it will capture as entire sale consideration is paid, if for any reason the cheque is returned unpaid, you will be at receiving end.

Sale Deed will not be registered with conditional clause(s).

Not advisable to take cheque towards sale consideration.

This act is nothing but, you will be purchasing litigation, just avoid it by taking either of above mentioned modes of payment.