registered agreement for sale is sufficient to protect your interests
builder would later execute sale deed in your favour
not necessary to have allotment letter
Aggreement for Sale done without Allotment letter
Bought a Flat in mumbai recently. After the payment of 10% of the total Agreed value of property.The builder did registration of Agreement for sale at the local sub registrar office & index 2 is also generated on my name. But so far not issued allotment letter. When I asked for the same he said no need as the agreement for sales is already registered. My question is , is this o.k Can I sell the property in future , without the allotment letter ?
Asked 2 years ago in Property Law
Religion: Hindu
11 Answers
Builder saying since the Agreement for sale is registered and stamp duty , registration also paid, then No Sale deed required in future. But only possession letter will be issued.
Asked 2 years ago
An agreement for sale contains a promise to transfer a property in question in future, on satisfaction of certain terms and conditions. An agreement for sale does not, in itself, create any interest in or charge on a property. Therefore, the sale of a property is not complete without a conveyance deed.
whatever the builder has informed you is correct
had there been no registered agreement for sale, in that event an allotment letter would be needed against payment of a booking amount/token/earnest money
as per the mandate of RERA upon receiving 10% of the total sale consideration the builder is required to register an agreement for sale with the flat purchaser, which has been done
this agreement for sale is your title document using which you will be able to sell the flat in future
yes a sale deed completes the title, but i have hardly come across any case where a sale deed is later on executed and registered
the sale deed does not attract any stamp duty except Rs. 100 if full and proper duty is paid on the agreement for sale
as per law an agreement for sale does not confer any ownership right title or interest on the purchaser
but despite this settled law, since time immemorial builders only do an agreement for sale and thereafter no sale deed is registered and even the banks accept the registered agreement for sale for the purpose of sanction of loan
The builder is required to issue an allotment letter allotting the flat with the conditions stipulated therein after the sale agreement had been executed but before the execution of sale deed.
You can insist on that because it is a vital document.
Without sale deed on your name you cannot get the title to the property.
Possession letter is not a title document neither the agreement for sale.
You insist on it otherwise you can refuse to accept the delivery of property
- An allotment letter is an important document in the real estate sector during the purchase of property.
- Further, if a person is buying an under-construction property then an allotment letter is provided by the builder to the prospective buyer, and it is issued once the buyer pays 15% of the property value to the developer.
- However, legally a sale deed is mandatory to become the owner of the property
- Hence, an agreement for sale is only limited to the handover of the property , and after executing sale deed it has not much value in the eye of law.
- You cannot sell the property in the absence of a registered Sale deed /conveyance deed.
Yes you can sell the property on basis of sale deed
In the light of registered agreement to sell is sufficient and no other document like allotment letter etc. is not required but agreement to sell is not final document and sale deed is must to be executed and registered. Sale deed is final document.
Possession letters are typically issued to signify the handover of physical possession, but legal ownership is established through the Sale Deed. It is advisable to insist on completing the Sale Deed to ensure clear title transfer and legal ownership rights.
Without sale deed, you will have a lot of issues in selling the property in future as the title is not transferred until sale deed is registered.
The amount of stamp duty already paid during the registration of agreement to sell would be adjusted against stamp duty payable as per Circle rate at the time of registration of sale deed.
Dear client,
Typically, an allotment letter serves as evidence of the builder's commitment to allocate a particular flat/unit to a buyer. However, the absence of an allotment letter might not necessarily prevent you from selling the property in the future. What's crucial for a sale is having legal documents that establish your ownership rights. In your case, the Agreement for Sale, registration documents, and the index 2 in your name are vital proofs of ownership. These documents establish your legal rights over the property and can be used to transfer ownership when you sell the property. Furthermore, while the absence of an allotment letter might not be an obstacle, having it could still be beneficial as it often contains specific terms and conditions related to the purchase. You might want to request it from the builder for your records and for potential clarification on any terms or conditions related to the purchase of the property. Always ensure that any property transaction is legally sound and seek professional advice whenever in doubt to avoid any complications in the future. You can reach out to us for further assistance
