Payment terms for selling the plot
I am selling the plot and tomorrow is the registration for the same. The buyer is giving a DD for full and final payment. I would like to know what clause should be mentioned in the sale deed. Should I mention that the sale deed is valid subject to the realization of the DD?
Asked 4 months ago in Property Law from Bangalore, Karnataka
D.D is not a cheque but almost cash, so there is no need to mention "subject to realization". In any case if you are apprehensive that the D.D handed over to you might not be encashed, you can include one clause in the sale deed that if full sale consideration is not received or the negotiable instrument gets dishonoured for whatever reasons, then the sale deed is null and void.
this should protect and safeguard your interest.
you can ask purchaser to Handover xerox copy of demand draft or bankers cheque
2) verify with bank that such demand draft or bankers cheque has been issued
3) insist on demand draft of nationalised bank or reputed private sector bank
4) you can add clause that sale deed is valid subject to realisation
Have you not got the sale deed drafted by a lawyer? If the answer is no then wake up and engage a lawyer for this. Do not sign on the readymade draft produced by the buyer.
1) The DD is a pre- paid instrument and under normal circumstances the bank will honour it unless it has been subsequently cancelled by the maker.
2) Once you have done the registration of the Sale Deed the title transfers to the buyer, therefore the stipulation 'the sale deed is valid subject to the realization of the DD' will not help although you are at liberty to do so.
3) It would be better to add another clause about the realization of the DD. You can put a clause of a penalty or interest and any litigation charges if needed to be fixed on the buyer in case of a dishonour of the DD.
I would like to know what clause should be mentioned in the sale deed. Should I mention that the sale deed is valid subject to the realization of the DD?
You can mention the above phrase in the sale deed
There is no legal infirmity in it,