Sale Deed: in cheque number a digit missed
I have already brought a land in Bangalore and registered it, after a day from registration i realized that one digit in Banks loan cheque number has been missed while typing in sale deed. This has already been informed to seller, now seller has given me indemnity bond stating the they have received correct cheque with correct number from bank. in that bond they have given reference of my registration number. Now i want to know if:
1. That is okay with no complications ?
2. in that indemnity bond there is no witness mentioned. do witness needed?
3. my name is not mentioned in indemnity bond but as i said registration number mentioned.
Shall indemnity bond will be okay or we need to take any further step to solve this?
Asked 3 months ago in Property Law from Bangalore, Karnataka
In addition to the above take a Receipt duly signed by the Seller detailing out the complete payment schedule as shown in the Absolute sale deed that was registered recently. Mention the correct cheque number and any other detail that has been over looked earlier. Let this receipt be taken on a Rs.100/- e-stamp paper, along with two witnesses (If same two witnesses who signed the sale deed are available better). This should suffice.
1) Indemnity bond should serve purpose as seller has given in writing that full Payment has been received by him for sale of land
2) deed of rectification is not necessary
1) It would have sufficed if a proper indemnity bond was made indemnifying you from liabilities. Your name and two witnesses must have been there in the indemnity bond.
2) The best thing is to get a Rectification Deed registered with the correction so that there will be no future confusion or dispute. There are minimal charges involved.
1. Get the Rectification Deed done executed by the Seller rectifying the mistake of missing one digit number in the original Sale Deed and mentioning the correct cheque number of the loan amount.
2. By doing this the problem will be solved once and for all.
At the outset, i wish to state that the indemnity bond provided by the Seller quoting the registration sale deed number is Perfectly OK and hence there is no cause of immediate worry.
Should there be any problem in future , you can add 2 witnesses of your choice at a later date in the same indemnity bond.
Next steps ( being 200% cautious) :
1) Since it is a cheque issued by the bank( on account of a loan) you can ask the bank to inform you once the cheque has been encashed by the seller and take a bank statement to that effect so that you are in possession of proof that the cheque has been encashed by the seller and the cheque was issued on your behalf by your bank from your loan amount sanctioned.
2) You can also ask the seller to issue a receipt for the cheque amount acknowledging that he has received the Full payment of the sale consideration and hence there are no dues from you/ your bank on behalf of you.
Hope this helps.
1. The cheque number mentioned in the registered sale deed shall not place any important role until the cheque is bounced or payment stopped. The affidavit given by the vendor shall suffice the requirement if you are so much worried about it.
2. The indemnity itself is unnecessary hence he same executed without witness is okay. Moreover no indemnity bond will have a witness to the execution. You can get it notarised if need be.
3. This will do. However you retain the original in your possession.
Thanks for your valuable feedback.
The amount in that loan cheque is 3 Lakhs. The Indemnity bond has already been notarized (but without witness and without my name). I have asked the vendors for rectification deed, they are telling it's not needed. please suggest. I have to make a final decision. Thanks in advance!
Asked 3 months ago
Rectification deed is not necessary as full payment receipt acknowledged by seller . Mistake is only of one digit missing on cheque no
Indemnity bond need not be witnessed. Just notarization will be sufficient.
Also there is no need for rectification deed to rectify just on missing number of the cheque meant for payment in the original sale deed.
As the cheque has already been en-cashed and the amount for the sale consideration has been realised by the vendor, he cannot come back with a claim for sale money anymore.
My answer to your follow up question would be the same as earlier, if that method is followed I do not see any illegality, on the other hand it would be the best option available to you.
A simple rectification deed to be executed by the seller is the solution to this. No indemnity bond is required for this. The rectification deed is required.