Cancellation of registred sale deed
Usman
(Querist) 24 October 2014
This query is : Resolved
Respected Sir,
Please guide me as per maharastra (mumbai) law
1.A registered sale deed can be cancellaed in how many days ?
2.In what candition canceallation of registered sale deed can be done?
3.How much stamp duty(%), service tax will be refunded by registar office.
Thanks in advance for your valuble advice
Anirudh
(Expert) 24 October 2014
Dear Usman,
First and foremost please understand the following:
(i) A Sale deed cannot be cancelled by the Seller. Such a deed of cancellation cannot be accepted for registration by the Sub-Registrar.
(ii) Once title to the property is vested in the buyer by the sale of the property, it cannot be taken back by the seller by execution and registration of a deed of cancellation even with the consent of the Seller and the buyer. The proper course would be to re-convey the property by a deed of conveyance by the buyer in favour of the seller.
(iii) Where a transfer is effected by way of sale with the condition that title will pass on payment of consideration, and such intention is clear from the recital in the deed, then such instrument or sale can be cancelled by a deed of cancellation with the consent of both the parties on the ground of non-payment of consideration. The reason is that in such a sale deed, admittedly, the title remained with the transferor.
(iv) In other cases, a complete and absolute sale can be cancelled only at the instance of the Seller only by taking recourse to the Civil Court by obtaining a decree of cancellation of sale deed on the ground inter alia of fraud or any other valid reasons.
Raj Kumar Makkad
(Expert) 24 October 2014
Your query is entirely an academic hence no eply from my side.
Usman
(Querist) 25 October 2014
Thank you very much Anirudh Sir for your guidance.
In our case person X (buyer) and builder (seller) both are ready and agree to cancel the registered Sale Deed.Registered Agreement is 8 month old.
Further after cancellation builder will do the registration in my name or you can say Sale Deed will be again registred between me and builder.Is it legal or not please share your opinion.Thnaks in advance.
Anirudh
(Expert) 25 October 2014
I am not comfortable in answering your query - not because that I do not have an answer - but mainly because I do not exactly know the complete facts and circumstances, and the persons with whom you are dealing and the ultimate purpose for which the whole thing is being done.
Whether you are a seller or a buyer, I would advise you to be cautious.
It is not clear in which City/Town you are located.
Guest
(Expert) 25 October 2014
A Sale Deed could be cancelled with valid reasons and No Time Limit or No question of any Refund in StampDuty and Other Charges Paid to Govt and Registrar Office in your Case.I would suggest Let the Present Owner Register the same in your Favour.I think you are expecting some advantage by cancelling the previous Sale Deed and it is not possible in your case.
Advocate. Arunagiri
(Expert) 25 October 2014
A deed of cancellation of a sale executed by mutual consent by all parties to the sale deed, if presented for registration, the registering officer is bound to register the same provided the other requirements like Section 32-A of the Registration Act have been complied with.
Guest
(Expert) 25 October 2014
Dear Author,Section 32A of the Registration Act only Speaks about Photograph and Finger Prints and I do not understand how it would help you in getting a Refund after 8 months
Anirudh
(Expert) 26 October 2014
What I had given in my reply is backed by Full Bench of the Madras High Court in M/s. Latif Estate Line India Ltd. vs. Hadeeja Ammal, 2011 IR CC 1533 (1548) (Mad) (FB).
In view of the categorical decision by the Full Bench of Madras High Court, I am unable to accept the view of Mr. Arunagiri that: "A deed of cancellation of a sale executed by mutual consent by all parties to the sale deed, if presented for registration, the registering officer is bound to register the same."
Usman
(Querist) 26 October 2014
Thank you all respected sir, for your valuable advice further I want to say that the property (flat) location is vasai west thane maharastra and builder and 1st owner wants to cancel it to get back refund of stamp duty.Is it possible sir.please advice. Thank you in advance.
Anirudh
(Expert) 26 October 2014
It is not possible to get back the stamp duty in the fact situation given by you.
The buyer who has bought the property can sell the property to you (instead of cancelling the sale deed between the buyer and builder, and the builder reselling it to you). Naturally, it will involve stamp duty and registration.
Please also remember, if the sale consideration is more than Rs. 50 lakhs then you have to deduct 1% TDS while making payments (you have to deduct 1% as and when you make any payment - even if it is part payment towards total consideration).
Advocate. Arunagiri
(Expert) 26 October 2014
Mr.Anirudh,
I have just reproduced the portion of the judgement in latif case.
I am once again reproducing the operative portion of the latif case:-
59. After giving our anxious consideration on the questions raised in the instant case, we come to the
following conclusion: -
(i) xxxx
(ii) xxxxxxx
(iii) Where a transfer is effected by way of sale with the condition that title will pass on payment of consideration, and such intention is clear from the recital in the deed, then such instrument or sale can be cancelled by a deed of cancellation with the consent of both the parties xxxxxxxxxxxxxxxx
Anirudh
(Expert) 26 October 2014
If you have meant only the cancellation of sale deed due to non-payment of consideration, and that too with the consent of both the parties, I have no issue.
In fact, if you can see, in my reply this point had been covered at (iii) very clearly.
In spite of this, when you replied that "A deed of cancellation of a sale executed by mutual consent by all parties to the sale deed, if presented for registration, the registering officer is bound to register the same" (without mentioning the essential condition about non-payment of consideration, where payment of consideration is a pre-condition for passing on of the title of the property) I was taken aback.
Now, thanks for your clarification.
Usman
(Querist) 30 October 2014
Respected Sir,
Many many thanks for your advice.
I am again summarizing my problem ponitwise and wants to get clearity on some point.
1.Location of property (flat) is in vasai west Thane.
2.Person X purchased flat from builder eight month back at an agreement value of Rs.100 (say) by paying stamp duty of Rs.5 and Registration fee Rs.1
3.Now as on date person X and builder both wants to cancel the deal.Person X will pay back Rs.100 to builder.
My Qustion is following
1.Is it possible to cancel the registred sale deed as per law?
2.Can person X will get back stamp duty paid Rs.5 and Registration fee paid Rs.1?
3.Can builder will be able to sell it again to person Y.
Please advice , my thank you in adavance.
Usman
(Querist) 31 October 2014
Respected Sir,
Many many thanks for your advice.
I am again summarizing my problem ponitwise and wants to get clearity on some point.
1.Location of property (flat) is in vasai west Thane.
2.Person X purchased flat from builder eight month back at an agreement value of Rs.100 (say) by paying stamp duty of Rs.5 and Registration fee Rs.1
3.Now as on date person X and builder both wants to cancel the deal.Person X will pay back Rs.100 to builder.
My Qustion is following
1.Is it possible to cancel the registred sale deed as per law?
2.Can person X will get back stamp duty paid Rs.5 and Registration fee paid Rs.1?
3.Can builder will be able to sell it again to person Y.
Please advice , my thank you in adavance.
