• Sale agreement - description of property

Hi,

I am in process of purchasing a flat in Bangalore. I have prepared a sale agreement (i.e. lawyer has prepare the sale agreement) and applied for the loan.

The main issue:
Inside the sale agreement we have described the property schedule as below:

SCHEDULE
Schedule Property

All that piece and parcel of the Residential Apartment namely Flat No. xyz, on the n?th Floor, in the residential apartment building known as “ABC Apartment”, constructed on the converted land for Non-Agricultural Residential purpose as per the order of the Special Deputy Commissioner, Bangalore District, Bangalore, vide order No. xxxxxxxxxxxx dated 30/07/2002 bearing the Survey No.PQR, Property No.PQR, situated at --------- Village, <Area Name>, Bangalore South Taluk having a super built up area 1234 square feet with terrace xy square feet along with undivided interest in the land namely <abc.ef> sq ft, consisting of ­ three bedrooms, one hall, one kitchen, bathrooms and toilets with one covered car parking space in basement floor.



And given the reference of property as below inside agreement# under section
WITNESSETH AS FOLLOWS

WHEREAS the VENDOR is the absolute owner of the Residential apartment bearing No.xyz, nth Floor, in the  residential apartment building known as "ABC Apartment", constructed on the converted land bearing the Survey No.PQR, Property No.PQR, situated at ------- Village, <Area Name>, Bangalore South Taluk and the aforesaid residential apartment as more fully described in the SCHEDULE hereunder and hereinafter referred to as the “Schedule Property”.

AND WHEREAS the VENDOR  purchased the Schedule Property from its erstwhile owners under a Deed of Sale dated n?th January YYYY which document  was registered as Document No. <Document No> of 20xx-yy which is stored in CD No. <CD NO> on n?th January YYYY at the office of the Sub Registrar, <Area>, Bangalore.


Now quries is:
- Is that mandatory to mentioned something call "Schedule 'A' property" inside sale agreement ?
- Is that mandatory to mentioned actual apartment boundary (east, west, etc..) inside sale agreement?

We have prepared final "SALE DEED" draft which (SECHEDULE section) covers both property description of 
 - actual "ABC Apartment" as Schedule 'A' property and 
 - flat description 
 - boundary (east, west, etc..) description.  

But XYZ bank is asking to include same (boundary description) inside "Sale Agreement"  - saying that should be the format. But I am not getting this point ? Is that really mandotary and what is wrong with the sale agreement as far as it described the property.

Sale agreement is already signed, registred (e-stamp) and notarized. Will it be legal to change the same. 

- Sale agreement prepared by Lawyer and he is saying description is quite enough to describe the property ( as it also refer to original deed) for sale agreement. All such detail will be included in final "SALE DEED"


I am looking for opinion on this. As I feel bank lawyer is stick to one format he is familiar with - I might be completely wrong on this. 

Note: Same agreement (only flat no change) is approved by some other bank.
Asked 7 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu
1) Your lawyer is correct as schedule incorporated by you sufficiently describes the property 

2) it is not mandatory to mention in format sought by bank in agreement for sale 
Ajay Sethi
Advocate, Mumbai
23334 Answers
1220 Consultations
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Any document of conveyance in respect of flat shall broadly include the 'A' Schedule, which is the whole property, 'B' schedule which will be the UDS of a particular flat, and lastly 'C' Schedule which will describe the flat and car park if any. The sale agreement and sale deed must necessarily be the same. If the bank is asking for some clarity in the document, then the lawyer must be willing to make it in order for the document to be accepted. What is generally acceptable the bank lawyer must be asking, therefore there is actually no need to suspect the same.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
51 Consultations
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Hi 
Section 55 of Transfer of property Act requires two Indexes to be maintained regarding  to property transaction 

Index No. I shall contain the names of persons executing the document and persons claiming under every document entered/filed in Book No. 1.

 Index No. II shall contain the particulars (description with boundaries, etc.) of the property and other particulars relating to every such document as may be directed by the Inspector General from time to time. 

There are Rules under the Registration Act prescribed for every state including karnataka. 

As far as your query is concerned, it is mandatory to have the description of property mentioned in 2 places in the sale deed. 

The details of the subject matter of the sale deed will be mentioned in 2 places. 
1) Subject matter of the sale deed: (this appears in either the main document) : THis is basically to ensure that both the vendor and vendee agree to the sale of same subject matter . 
(In the first instance, the details of the properties that is survey numbers, door numbers, location, Flat No. xyz,having a super built up area 1234 square feet with terrace xy square feet along with undivided interest in the land namely <abc.ef> sq ft, 
The boundaries, land mark, location  of the property  are not mentioned in main subject matter. 


2) The second instance i.e property schedule is more about identification of property and also provides unique details of the property along with its boundaries, area, location, land mark etc. 
 The property schedule comprises of 
Property situated at Survey No.PQR, Property No.PQR, admeasuring an area of __________ situated at --------- Village, <Area Name>, Bangalore South Taluk etc plus the following: 

1) Flat No. xyz,having a super built up area 1234 square feet with terrace xy square feet along with undivided interest in the land namely <abc.ef> sq ft, with One parking area admeasuring xxx square feet

2) Floor number , in the residential apartment building known as “ABC Apartment”, 
3) Boundaries
North
South
East
West etc
4) Car parking details : 

It is paramount in your interest to have a separate schedule of property also and i am surprised how the sub-registrar permitted you to get the property registered without property schedule mentioned separately along with flat drawings, common area details etc. 


Since you have already executed a registered sale deed, you and the builder should execute a rectification deed(Rs1000 fees) and get the Property schedule Appended to the original sale deed as per the rule of registration of karanataka. 

hope this helps. 
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
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Is that mandatory to mentioned something call "Schedule 'A' property" inside sale agreement ?
If there is only one property is to be purchased, there is no necessity to mention 'A' schedule property, the letter 'A' is not required to prefix schedule of property.


- Is that mandatory to mentioned actual apartment boundary (east, west, etc..) inside sale agreement?
Yes, that is the thing which is identifying your property.






Sale agreement is already signed, registred (e-stamp) and notarized. Will it be legal to change the same. 
- Sale agreement prepared by Lawyer and he is saying description is quite enough to describe the property ( as it also refer to original deed) for sale agreement. All such detail will be included in final "SALE DEED"

The schedule of property mentioned in the sale agreement shall be the same schedule that will be reflected in the registered sale deed document, therefore the bank, who is the disbursing the loan is right in insisting the schedule of property properly so that a different schedule should not reflect in the registered sale deed  which will become a technical flaw for them to recover the loan in case of default in future. The schedule of property shown while availing loan should not differ to the actual schedule of property or else it may become fatal to the bank's case for recovery at a later stage.
You can rectify the sale agreement as per the requirement.





Note: Same agreement (only flat no change) is approved by some other bank.

The banks will differ in their requirement something similar to the difference in the interest rates, so you cannot dispute the bank decision/ requirement which will be disbursing the loan.
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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1. If the property has been defined in the sale deed then a separate schedule is not required to be annexed. 

2. If you want loan from the bank then you have to yield to its condition, failing which it will not advance it.

3. Even if the sale agreement is signed a supplementary agreement can be executed.

Ashish Davessar
Advocate, Jaipur
18171 Answers
449 Consultations
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if a rectification of the sale agreement is to be carried out, it must be of the same value as the original sale agreement and nothing less would be acceptable.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
51 Consultations
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Sale agreement (not sale deed) Rs 100. Both you and builder have to sign
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
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1) Deed of rectification would attract nominal stamp duty 

2) stamp duty is state subject varies from state to state 
Ajay Sethi
Advocate, Mumbai
23334 Answers
1220 Consultations
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For registering the rectification deed you dont need to pay the stamp duty because it is already suffered for the same  purpose however you may have to pay registration charges because it is re-registration.
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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This can be answered only by a local lawyer as it is not uniform throughout India. However, a supplementary sale agreement may be executed on a stamp paper of same denomination as the original sale agreement.
Ashish Davessar
Advocate, Jaipur
18171 Answers
449 Consultations
5.0 on 5.0

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