• Sale Deed and Agreement of Sale

Hi Team,

Need couple of quick suggestions

I recently purchased a Plot in a RERA Approved Gated Community in Karnataka and also get the Titles of the property and plot verified. The lawyer certified the plot had no incumbrance and I also put a add in paper for 7 days for which i did not get any concerns or issue raised and lawyer gave me a confirmation letter to go ahead with property buying. After this I went into Agreement of Sale with builder followed by executing the Full Sale Deed in my favor. 

I also loaned from a reputed bank as this project was also approved by the bank. Upon completing the registration, I found the following issues within 2 days.
1. The registration happened with a wrong Property Number and reflecting a wrong plot and survey number in EC. This error was due to builder submitting a wrong summary. I am requesting builder to help with rectification deed.
 
2. Further to this, I found there was an entry in EC that there is a Prior Agreement of Sale with No Possession with another party which was not reviled to us and somehow now its shoeing in EC. 

3. The Sale Agreement timings suggests that either of the Party has to execute the Full Sale Deed within 30 days from the Agreement. Now this agreement is 6 months old 

I was asked the builder to execute Rectification of Sale Deed followed by Cancelation and Confirmation Deed from the other party stating no claim on the property I purchased. I have paid the builder via DD to the direct account 100% in white the only cavate is its not a RERA designated account as the bank said the project is almost complete and not a necessary verbally and disbursed as per the builder demand note

Please could you help me guide what all other factors I need to consider and what are my options if the builder does not perform the rectification of sale deed and cancelation of prior agreements in timely manner? If builder asks for more time then, what are the additional documentation I need to secure to ensure my interest are safeguarded i this property.
Asked 11 days ago in Property Law
Religion: Hindu

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15 Answers

Issue legal notice to execute deed of rectification to rectify  mistake in sale  deed and cancellation of prior agreement 

 

2) if builder fails to do so file case against builder to execute the same 

Ajay Sethi
Advocate, Mumbai
98312 Answers
7989 Consultations

you issue a legal notice to the builder with all the details of the defects you have observed post registration of your property.

You demand the builder to rectify the defects  and also to cancel the sale agreement within a time period stipulated in the legal notice and inform him that failing to respond or comply with the demands, he will be liable for the legal consequences and for the costs.

After that, if the builder is still not responding or borrowing time,  you can approah civil court with a suit for specific relief to direct the builder to execute a registered rectification deed rectifying the defects found and also to cancel the sale agreement which is still reflecting in the encumbrance certificate.

T Kalaiselvan
Advocate, Vellore
88514 Answers
2397 Consultations

  1. Intention of builder is not good. Force him to do rectification of sale deed by filing a suit under Section 26 of Specific Relief Act, 1963, Court will issue direction to builder to do the rectification or can direct the Sub-Registrar to carry out rectification.
  2. Prior agreement of sale is problem between the  builder and agreement  holder as you did full due diligence.
  3. The agreement of sale is also time barred.

Ravi Shinde
Advocate, Hyderabad
4850 Answers
42 Consultations

Ask him to give in writing that he will execute deed of rectification and cancellation deed of earlier agreement within period of 3 months 

Ajay Sethi
Advocate, Mumbai
98312 Answers
7989 Consultations

even letter from builder or email would suffice to protect your interests 

Ajay Sethi
Advocate, Mumbai
98312 Answers
7989 Consultations

 

  • Formal Written Notice:
    Send a registered notice listing all the builder’s obligations:

    • Rectification of the Sale Deed to correct property numbers.

    • Cancellation/nullification of any prior Agreement of Sale.

    • Execution of a confirmation deed from the previous party.

    • Issuance of an updated EC free of encumbrances.

    • Complete Khata Transfer and Mutation.

  • Binding Agreement:
    Insist on receiving a notarized or registered indemnity bond from the builder that clearly states the builder’s responsibility if these rectifications are not completed within the agreed 3-month period. Registered bonds usually carry more legal enforceability.

  • Documentation & Follow‑Up:

    • Keep copies of all correspondence.

    • Have your legal counsel review the documents.

    • Consider a performance bond as additional security if delays continue.

 

Shubham Goyal
Advocate, Delhi
1038 Answers
5 Consultations

Yes it should be registered if there is transfer of ownership of immovable property 

Prashant Nayak
Advocate, Mumbai
33420 Answers
220 Consultations

Builder will not take any initiative. it is you who needs to approach Court and enforce your rights.  

Ravi Shinde
Advocate, Hyderabad
4850 Answers
42 Consultations

You may ask the builder to give an undertaking in writing to complete the tasks as enumerated in your demand within the time period prescribed by the builder in this regard and also add clauses for legal course of action if the builder fails to comply with the undertaking beyond the prescribed time limit.

T Kalaiselvan
Advocate, Vellore
88514 Answers
2397 Consultations

The undertaking given by the builder can be on a plain paper also but duly notarized or he may execute the same in his letter head also with his seal and signature.

T Kalaiselvan
Advocate, Vellore
88514 Answers
2397 Consultations

  • A self-declared rectification is not valid for registered property documents like a Sale Deed. Any correction must be done through a joint Rectification Deed, signed by both buyer and seller, and registered with the Sub-Registrar.

    However, if the Sale Deed is correct and only the EC or PID is wrong, you can:

    • Apply for correction in EC/PID at the Sub-Registrar or local revenue office, by submitting a copy of the correct Sale Deed and a request letter.

    No need to change the Sale Deed if the schedule is accurate.
    Self-declared rectification deed alone has no legal value in this context.

Shubham Goyal
Advocate, Delhi
1038 Answers
5 Consultations

Deed of rectification has to be signed by both the parties 

 

if there is no

mistake in sale  deed then no rectification deed is  required 

 

3) if there is mistake made post registration then you apply to registrar to correct the errors as it is contrary to sale deed 

Ajay Sethi
Advocate, Mumbai
98312 Answers
7989 Consultations

There is no such declaration of correction unilaterally. A correction deed needs to be executed and registered by both the executant and claimant. There is no such shortcut. 

Ravi Shinde
Advocate, Hyderabad
4850 Answers
42 Consultations

The rectification deed should be executed by the original executor.

The recipient cannot execute the rectification deed rectifying the error on his own.

If the seller is reluctant or not cooperating then the buyer can approach court for execution of registered rectification deed as per procedures of law.

T Kalaiselvan
Advocate, Vellore
88514 Answers
2397 Consultations

No recertification deed can’t be unilaterally done

Prashant Nayak
Advocate, Mumbai
33420 Answers
220 Consultations

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