In light of the very major amendments, which have radically changed the scheme of the Act, ( vide Amendment Act 2018 )in the Specific Relief Act 1963, what is the practical validity and legal enforceability in Delhi jurisdiction of an unregistered Agreement to Sell ( ATS). in respect of a property in Delhi? I have seen a July 2021 judgment of District Court Delhi decreeing specific performance of a unregistered ATS by following cited Supreme Court and Delhi High Court decisions holding that unregistered ATS is fully valid and enforceable, provided it is not accompanied by delivery of possession. What is the value, as a purchaser, of getting part possession of property under unregistered ATS, even if the seller agrees to give part possession, if the whole ATS is rendered legally inadmissible due to lack of registration? I am not an advocate, just a layman with an interest in law, and since I may be purchasing a property in Delhi in the future, want to know the value and legal enforceability of an unregistered ATS . Thanks
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Un registered agreement for sale is valid An agreement for sale is a promise in future, that the property will be transferred to the rightful owner while sale deed is the actual transfer of property ownership to the buyer.
2) if seller fails to execute registered sale deed or comply with terms of agreement for sale you can file suit for specific performance against seller
3) in event it is accompanied by delivery of possession it would requires compulsory registration
It's valid as far as evidence is concerned before the court. You need tk get the same registered by paying penalty ans registration charges in the same
Unregistered Sale Agreement is enforceable in Law, and any shortage of stamp charges can be paid through the Court's order. Such an agreement will be valid for three years from the execution date.
This depends on the clauses framed in the agreement,
This is important to note that Section 54 only mandates registration of the sale deed, i.e., only the instrument that helped in the sale of the property but does not mandate the registration of Agreement to Sale (ATS). An unregistered sale deed without the delivery of property will not be enough since the document must be registered. Thus under Section 54, such an unregistered sale deed, although valid under the Registration Act, will not be able to confer the title on the purchaser.
- If the possession of the property transferred to the buyer by the seller at the time of agreement to sell ,then the unregistered agreement having no value in the eye of law , and registration is mandatory of the agreement
- However a suit for performance can be filed and the court can send the agreement for property stamp duty of the agreement .
- Further, only in case when the possession of the property not given to the buyer at the time of agreement then an unregistered agreement can be admitted as evidence before the court.
