How to verify if the flat has registered or unreg sale aggrement
I have finalized a flat in Bangalore, but the same flat has already been in agreement done(as per builder it is unregistered sale agreement) with some person. As per the builder, the person (with whom it was agreement done earlier) would cancel the agreement at the time of registration, not sure how safe it is proceed in such case. Even if I insist him to cancel the unregistered sale agreement prior to my registration, what is the proof for me that he has really cancelled the agreement? Is there a way one can find out if the flat has either registered or unregistered agreement done to some person legally. Can you please clarify.
Asked in Property Law from Bangalore, Karnataka
1) you can take search in sub registrar office as to whether agreement for said flat has been registeted
2) if agreement for sale is unregd cancellation of agreement would not require registration
3) if you have any doubts inform the builder that you want to purchase flat which has been unsold till date
If it is an unregistered sale agreement it would not be possible for getting a confirmation from the sub-registrar's office. However if the builder is stating for the record that he had entered into an earlier sale agreement for the sale of the same flat, then you will have to take his word for it.
Alternatively, you can take out a PUBLIC NOTICE in two leading newspapers advertising that you wish to proceed to buy the flat from the builder, and if any person/s have any manner of right, title or interest in the said flat, they may lodge their claims with documentary proof within 7 days from the date of publication.
Also in addition to the above, you can ask the present seller to be a Consenting Witness at the time of registration of your sale deed.
These alone would be your options. If you chose all it would be safest transaction proceeding further.
1.Take Encumbrance Certificate for the Flat from the jurisdictional Sub Registrar's Office and if the earlier Agreement of Sale is registered, the same shall be reflected in the EC.
2. In case there is a unregistered Agreement of Sale, give a Public Notice in local and English language newspapers that you intend to buy the property and call for objections or claims from the public. In this way you can get to know.
1. An agreement to sell a property does not require mandatory registration. Even an unregistered agreement has the same legal force and character as a registered agreement.
2. The existing agreement to cancel should be mutually cancelled before you execute a fresh agreement to sell with him.
3. When the agreement is cancelled a cancellation deed is executed.
4. Before proceeding to execute an agreement to sell you should conduct a title search in the office of sub-registrar to ensure that the title of the property is free and marketable. This exercise will reveal whether there is any standing agreement to sell besides the one in existence.