Sale agreement registration
I am from Chennai...I want to sell my flat... the buyer wants to get into an Rs.20 stamp paper agreement and wants it to be registered.. the agreement states that within 90 days the sale deed registration will be done properly.
As a seller, if I enter into an agreement wat are the advantages and disadvantages for me? If the buyer does not agree for the registration after 90 days, wat can I do? Is it legally safe? Generally I heard that the buyer can drag the agreement till 3 years as it is valid for 3 years... please advise
Asked 1 year ago in Property Law from Chennai, Tamil Nadu
1) there is no harm in registering agreement for sale
2) time should be essence of contract
3) it should be mentioned that purchaser shall make payment of balance consideration within period of 3 months . In case purchaser fails to make payment within period of 3 months earnest money paid shall be forfeited and agree e t cancelled
4) if you get agreement for sake drafted by lawyer you would be safe
Yes there are some advantageous and disadvantageous in entering an agreement for sale of property, however you can take some precautionary measures while entering agreement by mentioning cretin clauses viz., the time is necessary for the contract, if the buyer fails to pay the balance sale consideration within stipulated time then the amount already paid by him token advance shall be forfeited and the agreement shall be terminable by a notice. The limitation for an agreement of sale can be more than 3 years as mentioned in the Specific Relief Act. If the buyer wants to litigate the property under the guise of agreement he can. But you will have the option of the termination of the agreement. better to insist for full payment and get registered.
Once you enter into an agreement to sell, irrespective of whether it is registered or not, you are bound by it. The agreement becomes the charter of rights and liabilities of the signatories thereto i.e the seller and prospective buyer. If either party violates it then the other can seek redressal by filing a suit for specific performance in the civil court. So unless the buyer agrees to give you more time after 90 days you will be bound to execute the sale deed in his favour, failing which he can sue you for specific performance.
it is only agreement for sale. it is limited to the terms mentioned in the agreement. if you want to cancel it you can do so because no legal right accrues from it. if buyer cannot complete the sale with in prescribed period you can revoke this agreement. no damages will be given unless special rule is mentioned in this regard,
there is difference between agreement of sale and sale deed or contract of sale. in your case i.e. agreement of sale no right is accrues because no consideration is given at the time of agreement. in some cases earnest money may be given.
ENTERING INTO AGREEMENT FOR SALE IS NOT DISADVANTAGEOUS TO YOU PROVIDED THE CONDITIONS SET OUT IN THE AGREEMENT IS LEGALLY VALID.
IF THE BUYER IS NOT WILLING TO COMPLETE SALE WITHIN TIME JUST CANCEL THE AGREEMENT AND RETURN THE ADVANCE.
HE MAY FILE SPECIFIC PERFORMANCE SUIT ONLY IF YOU DO NOT COME FORWARD TO SELL THE PROPERTY
It is common in law that a sale agreement shall be valid for three years when the time is not essence of contract.
If you have specifically mentioned or stipulated the time period i.e., from and to, then this contact shall with the time limit as stipulated in the agreement.
Any transaction with regard to the transfer of immovable property shall be by a registered document only.
Thanks for all your responses.... it was an eye opener..with the help of the registered sale agreement, the buyer wants to get loan.(not bank loan, privately arranged).. is that allowed? Will it have any impact on me? (Seller)....
So I can surely enter into a sale agreement by clearly mentioning the date within which the sale deed needs to be registered. The seller confirms that he will register the property within the stipulated time.
Once the property is registered through a sale deed, the registered sales agreement gets automatically cancelled? Please respond to all my queries.
Asked 1 year ago
Sale agreement is not a title document, hence loan cannot be granted on the basis of sale agreement, but private financiers may grant them because they know how to recover in case of default in payment in the future.
Registration of sale deed shall not delete the existing entry i.e., sale agreement. That will also remain and the latest entry shall be the sale agreement between the same parties who were in the sale agreement, therefore it will provide proper reasons for the appearance of such entries in the encumbrance certificate.
1) on basis of agreement for sale purchaser can apply for loan to purchase the property
2) you can enter into regd agreement for sale mentioning period within which balance payment is to be made and regd sale deed executed
3) once regd sale deed is executed the agreement for sale has no value .
1. The buyer can obtain loan on the basis of the agreement. Since it will not result in the mortgage of your property the liability to repay the loan will fall squarely on the buyer.
2. The agreement to sell pales into insignificance after the execution of the sale deed.