• Agricultural land

This is regarding our ancestral land which is an agricultural land. We had done an agreement to sell the property as whole to a land developer and his time taken to settle the property payment was 6 months and the agreement is done to register after the payment is done. During this time the developer has converted the agricultural land to revenue. And is now insisting to register half of the property as individual sites that he has sold and collect the payment from registering each site from his clients and half of the property directly registered to him. My question is.. is this possible? If yes then what are the pros and cons to this.?
Asked 1 year ago in Property Law from Bangalore, Karnataka
Religion: Muslim
1) agreement for sale of property was entered into with the builder

2) there must be a clause in sale deed that on land conversion being allowed seller  shall execute deed of conveyance in  favour of the builder 

3) if so then you should insist that you would execute sale deed only in his favour 
Ajay Sethi
Advocate, Mumbai
46662 Answers
2759 Consultations

5.0 on 5.0

If the sale agreement had a stipulated period for completion of the transaction in your case 6 months, then the buyer should have strictly adhered to the terms, if he has failed to come forth and register the property into his name by paying the balance even after the lapse of 6 months, he is barred from doing so thereafter.
He cannot dictate terms to you by stating that you should collect the remaining payments from individual buying each individual site or plot from him.
You can cancel the sale agreement with the buyer and forfeit a part of the advance amount paid to you and return the balance to him as per agreement of sale. Once the Sale Agreement is cancelled, you are free to deal with the property as you like.
Regarding your very important question, can the buyer ask or insist upon you to register half of the property as individual sites that he has sold or would sell in the future and collect payments from each individual site purchaser, this is possible or permitted if you think that your money will be recovered at least in this manner, but you must take it in writing from the builder/developer of these terms by clearly emphasizing that each site or plot can or should be registered only with you signing the absolute sale deed as a Consenting or Confirming Party and further emphasizing that any payment to be made at the time of registration your share must be paid separately by way of a Demand Draft.
Kiran N. Murthy
Advocate, Bangalore
1010 Answers
91 Consultations

5.0 on 5.0

It is not clear from your query as the nature of agreement with the builder.
The developer can not without your consent and written permission sell pr covert the land.
If you wish the sell the land then you should be concerned with the sale price only.
If the builder is ready to make the payment to which both of you agree at the time of agreement then it is not your concern how the developer is going to commercially exploit this proeprty.
Devajyoti Barman
Advocate, Kolkata
13122 Answers
174 Consultations

5.0 on 5.0

Why did you deliver the possession to the buyer before the sale deed was executed in his favour? Be that as it may, you can register the property as individual sites only if the partition is made and the individual sites are already registered. Unless the land is divided it cannot be sold in individual sites. 
Ashish Davessar
Advocate, Jaipur
23092 Answers
639 Consultations

5.0 on 5.0

All such things are the developments of the agreement entered with the builder.

You have to go through the conditions that have been mutually agreed upon between the builder and you in the memorandum of understanding or joint development agreement or any other valid and registered agreement. 

If the acts of the boulder is not in line with the agreed conditions you may stop him from proceeding and can terminate the same quoting the breach of contract for this step.

Any such development which adversely impacts your interest in the property has to be stopped at once and necessary legal actions to be taken for rectifying it.
T Kalaiselvan
Advocate, Vellore
36790 Answers
403 Consultations

5.0 on 5.0

1. The agricultural land still belongs to you since you have entered in to an agreement only and have not yet registered any sale deed in his favour.

2. So, how can he change the character of your said land still being a third party?

3. However, you should not have any objection in directly registering some of your land to his customers in small portions as suggested by him after collecting the full payment, if you have no objection for making such sale.

4. If you do not agree with this proposal, you can refuse to act and cancel the agreement after the stipulated period for payment is over.
Krishna Kishore Ganguly
Advocate, Kolkata
18741 Answers
452 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