Hi Sir, I am buying a plot from a builder in Bangalore. The builder has developed a society and is selling plots within that. I want to enter into a registered sale agreement. Since currently i am staying in Delhi, the builder said there was no need to come to Bangalore to execute the sale agreement. He asked me to send a cheque with almost 25% of the property cost. He would then send me the agreement for signing. After that, he would get the agreement franked at the sub-registrar office. He also said there was no need of any ID proof, PAN card , current residence proof etc. for the sale agreement. Sir, i want to know if this is a right way of getting a registered sale agreement ?
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1) ask builder to furnish draft of agreement he wants you to sign
2) once you make 25%payment builder would send one sided agreement which is loaded in favour of builder
3) for registration of agreement pan card copy is required
4) you also have to check whether title of builder is clear and marketable
5) contact a local lawyer
This is not safe. If you cannot go to Bangalore then execute a GPA in favour of any of your relatives to authorize him to sign the agreement on your behalf. You may never receive the agreement after delivering the cheque.
1. Well, fir registration of sale agreement the physical presence of both the parties is required .So I am not sure how could he manage to do that.
2. The payment and signature should become simultaneous. So if you send cheque make it post dated so beofre the date of honouring of cheque the signed sale agreement reach you.
3. Take help of a local lawyer so he could meet the builder and give you information from ground zero.
This is not the way a property can be purchased.
Firstly have you seen the property physically and have verified the details and have satisfied yourself about the authenticity of the documents as well as the property itself. ?
There is no such system in India that the property papers shall be franked in the registrar office itself which can be considered as a registered document without you physically present before the registrar during registration.
For registration of sale deed or agreement you need to be physically present in the registrar office or else it can be considered as an act of impersonation and held invalid and illegal.
What is the necessary to knock the back door when the front door is kept open ajar.
There seems to some suspicions about this deal, you may lose your hard earned money if you are getting lured and hurrying up due to this , better be careful and handle patience to verify the veracity and confirm the genuineness before getting into such agreement.
If the builder says that there was no need of any ID proof, PAN card , current residence proof etc. for the sale agreement then ask him to do the registration without the payment, produce the registered document and collect the amount.
A. As per the General rule of law, Agreement for Sale need not be registered unless possession delivered. Hence, by paying sufficient stamp duty as prescribed in the law is sufficient. Hence, your presence is immaterial if the registration is not requried.
B. Your main objective of the query is whether the execution of agreement by way of aforesaid manner is valid or not? Yes absolutely vaild subject to payment of sufficient stamp duty either franking or purchasing e stamp paper and non delivery of possession. And the builder or authorized person must be signed in all the pages. Moreover, if you don't have any issue related to Title of the land, builder reputation, terms and conditions of the agreement, mode of payment towards the consideration you can issue post dated cheque. However, PAN card is mandatory only at the time of registration of Sale Deed if your sale consideration amount exceeds more than 50 Lakh for the purpose of TDS. Else not mandatory in most of the sub registrar office. Hence, If the seller had been signed over the agreement in favor of yourself is sufficient record in the eyes of the law.
C. Notwithstaning anything contained in the A and B reply, you can execute Special Power of Attorney within the family member to complete this task if you are not satisfied with these procedures.
Thanks Sir for your views on the matter. I now understand that the builder/developer wants me to enter into an unregistered sale agreement. How safe it is to enter into an unregistered sale agreement ? The developer says the final registration of sale deed would be executed only after they get release. They will get release from authorities after some final inspection regarding the mandatory developments in the society They are not willing to commit a timeline for the release date in writing. Also, i have read that banks give loan only on registered sale agreements.
1) dont be in hurry to make payment
2) insist on draft of agreement be forwarded to you before you make any payment
3) once you sign agreement for sale you would be bound by its terms and conditions .
4) if you seek to cancel agreement builder would seek to forfeit payment made by you
An unregistered sale agreement is not valid in the eyes of law. You cannot enforce it through a court of law in case of failure of the builder to provide you the property as per sale agreement.
The builder/developer will be vanish from the scene when you approach them repeatedly after paying the entire or a substantial portion of sale consideration amount. There may be many people to join you as victims to such fraudsters seeking redressal f their grievances.
Hence it would be advisable to stay away from such lucrative offers especially when you are not in the vicinity to follow up the disputes in the property related issues properly.
An unregistered sale agreement has the same legal character and force as a registered agreement. Since they are not specific on the date of conveyance it will be unwise to purchase the property.