Registered Agreement to Sale of a Plot
A farmer whose land was acquired by the Govt has been promised a plot in Greater Noida (Budh International Circuit). The property dealer is telling that his name is appearing in "Naksha-11" and will be allotted a plot of area 130 sq ft by the Yamuna Expressway Development Authority (YDA). Based on this only, the property dealer is asking us to go for an "agreement to sale" with the farmer which shall be duly registered with the YDA, He is asking us to make full payment of the agreed cost of the plot at the time of agreement only. Should we go for one such deal? How binding this "registered agreement to sell" uses to be and if in case the seller defies to the agreement, what will be the role of the authority? What document one such farmer is provided who is to get a compensation against his acquired land and which documents we should check and get verified before any deal?
Asked 12 months ago in Property Law from Greater Noida, Uttar Pradesh
1) what are terms of allotment by YDA ?
2) there may be restriction on sale of land
3) wait for official allotment letter to be issued by YDA
4) don't enter into any agreement for sale or pay any money to farmer now
1. Unless the farmer is settled and gets his allotment ,do not go for this deal.
2. Prima facie this deal looks like sham one.
3. Without allotment or compensation given to the farmer the deal with you should be withheld.
There is no bar to payment of full consideration of the property at the time of execution of the agreement to sell but this is rarely done. If you pay the full consideration while signing the agreement, and the seller subsequently dishonours the same, you will have to file a lawsuit for recovery to recover your money. So only a part payment should be made and the rest be paid at the time of execution of sale deed.
Inspect the sale deed of the farmer or any other document under which he claims title. Also check the notification for acquisition and the valuation certificate of the property under the signature of District Magistrate.
Should we go for one such deal? How binding this "registered agreement to sell" uses to be and if in case the seller defies to the agreement, what will be the role of the authority? What document one such farmer is provided who is to get a compensation against his acquired land and which documents we should check and get verified before any deal?
This is as good as buying a product without seeing it but on blind faith. This may help if you buy a product which is of less value and can be ignored even if you are cheated at a later stage due to its ignorable cost involved, whereas whether will you be able to sustain the loss of money, time and energy when you stand cheated or being dragged on for years on the same false promise of the allotment which can never happen at least until then when you are fully exhausted.
The farmer has not been compensated yet and was not even identified with the location of the property that is likely to be compensated to him by this deal by the government. Will it not be a foolishness to fall in the pit with eyes wide open?
Do not go behind a thing which is not available now, the seller may appear very sweet now and also the offer price may be very cheap but what is the guarantee, because any type of such agreement shall not fetch the desired results once it is already executed.
Do not be in a hurry, take a legal opinion from a local lawyer before you decide to go ahead.