• Payment terms for selling the plot

Hi,

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 12 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu
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.
Kiran N. Murthy
Advocate, Bangalore
868 Answers
69 Consultations

5.0 on 5.0

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 
Ajay Sethi
Advocate, Mumbai
32579 Answers
1795 Consultations

5.0 on 5.0

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.
Ashish Davessar
Advocate, Jaipur
20453 Answers
542 Consultations

5.0 on 5.0

Hello,
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.
S J Mathew
Advocate, Mumbai
2069 Answers
86 Consultations

5.0 on 5.0

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,
T Kalaiselvan
Advocate, Vellore
22754 Answers
221 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a Lawyer