We've signed sale agreement for purchase of property under construction. We'd like to register the sale agreement before we proceed to be sure the Builder provides the unit we selected. But the Builder says, as per their process they don't register sale agreement, they only register sale deed. I'm concerned the Builder may not deliver the unit we selected or may force us to take other units or may increase price as he's not registering sale agreement. How can I handle this? How can I go ahead without registering sale agreement - is it advisable? Builder is Tier A in Bangalore.
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Sale agreement is a compulsorily registrable agreement though mostly do not follow this rule and wait till the sale deed is executed.
What you have chosen is right course of action and must insist the builder for this.
Otherwise add a clause whereby he would be debarred to exchange this unit with any another one.
Unregistered agreement for sale is admissible in evidence for filing suit for specific performance to direct builder to execute registered sale deed and deliver vacant possession of flat purchased by you
2) builder is bound to deliver flat purchased by you
3) you can complain against builder before RERA if he fails to do so
Registration of sale agreement is mandatory as per Registration Act. However if the sale agreement is printed on either e-stamp paper or the stamp duty is embossed over it, for the required value, you can knock the doors of Court, if there were to be any deviation from the agreed terms by the Builder.
If you apprehend that the builder may play games at a later stage by manipulating the allotment of flats to his convenience, you can insist on registration of sale agreement or you are at your liberty to withdraw or cancel the booking.
However, please note that the builder is liable for the commitment he has made in the unregistered sale agreement towards the flat mentioned in the sale agreement, if he is changing the unit at a later date, you can always sue the builder by producing this unregistered sale agreement as evidence.
Generally, builders do not register agreements of sale. For any breach, you may sue them on the basis of the unregistered agreement. Keep a close watch and ensure that the builder registers the sale agreement only for the property you booked.
- A sale agreement is a promise of a future transfer of property ownership ,and basically it comes before the sale deed, which is executed and signed by the buyer and the builder
- Further, under Section 49 of Registration Act, an unregistered Agreement to Sell can be admitted as evidence of a contract in a suit for specific performance.
- Hence, if the builder will deviate from its clauses as mentioned in the sale agreement then you can take legal action against him
Both agreement to sale snd sale deed requires registration
if he doesn’t deliver then you have the option of approaching consumer court or rera
Dear client, un-registered sale is considered to be valid and can be used to sue the builder and get specific performance if he has not given you the flat which you want under section 49 of the Registration Act, 1908.
The tripartite agreement (purchase of new construction flat) has a clause that, "The parties unequivocally agree that they waive off their rights to sue or to be sued in respect of any matter, claim or dispute arising out of in any way disbursed." This clause in my view is unacceptable in the tripartite agreement, I don't want to give up my right at approach a court. I want to ask the Builder & bank to remove this clause. How to deal with this if they don't agree to remove this clause? Pocession is after 4 yrs, the Builder may misuse the clause.
Clause contrary to law is void
you cannot be restrained from taking legal proceedings not withstanding such clause in contract
The bank has no reason to include this clause.
The builder is taking precaution to protect himself by this clause if in case he doesn't fulfill the conditions of agreement.
You are at your liberty to demand removal of the non maintainable clause.
If the builder don't respond favorably you may even reconsider your decision to purchase the property.
You need not agree to this clause as you rightly said. Please convince the other parties to remove it. If they do not agree, majority prevails.
Dear Client,
Coming to the point, I suggest that you write to the builder and the bank formally and request that they remove the said clause from the tripartite agreement. When making your disapproval pertaining to the clause that may bar one from claiming an opportunity to sue or sue the other in relation to the property, it is crucial to be assertively clear. So cast a spell on a clause as highly prejudicial, unfair and unviable and state how its enforcement can actually have a negative effect on that particular contractual party.
In the event that the builder and bank are not in a position to respond to your request to delete the clause, then it is time to seek a legal opinion. To overcome this issue, you better talk with the provider and try to negotiate with them or find another legal way to solve the issue with the help of an attorney. If those negotiations are never to yield any results or if they are to produce results which are not in good proportions for better negotiation, then perhaps it is time to rethink about the agreement in such terms since, during and after the construction phase, one will not have many channels to seek legal redress in case of any eventuality.
- Yes, the builder may misuse this clause , and hence you can ask for the removal of this clause,
- If not agree then you can send a legal notice to them, and even cancel the deal