Registration of MOU

MOU doesnot carry force of law, hence it is advisable to enter into an agreement for sale and register it in order to safeguard your interest.

Thanks for you reply. However, it is not possible to carry out Agreement of Sale before July'11 as the owner fears he will incur short-term capital gain (he is selling the house before 3 years of possession).

This is the reason why we want to do a MoU at the moment and get it registered so that neither of us can deviate.

My original questions stand:

1. Is it possible to register the MoU? I will be paying token amount of Rs.4 Lakhs while executing MoU.

2. I would like to add a clause in the MoU which should stat that the total consideration amount of the said flat will not change irrespective of the market value of the property in July'11. Can you please help me phrase this clause with legal wordings?

Since the MoU will be carrying consideration, it shall legally mean agreement to sell. that will be a binding document and you must get it registered since it has been made mandatory.

MOU is not an agreement. It is only a written document  signed by both parties . Agreement  is coming under Indian Contract  Act. MOU   is not a valid unless it contain  all requisites of an agreement .

Mr. Haridasan, as per you also, the mou hereinabove contains the requisite of an agreement.