subrahmanyam venkata 31 December 2023

Can there be a difference between the contract amount per acre in the sale agreemnt and registered d

A sale agreement (unregistered) was executed to sell DRY agricultural land @ rs. 20 lakhs per acre..The buyer paid advance and agreed to pay the balance BEFORE registration. The guidance value is Rs. 22 lakhs per acre. Now the buyer wants to reduce the stamp duty and for that wants the seller to register the document in which the rate of land would be specified as Rs. 50000/ '-( instead of 20 lakhs). He wii pay the seller the whole amount by cheque to the seller.. What are the implications to the seller?

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T. Kalaiselvan, Advocate (Advocate) 31 December 2023

First of all the buyer has to pay the stamp duty @ Rs. 22 lakhs since it is the guidance value of the property and any value lesser than that will attract additional stamp duty.

Second thing, the buyer cannot insist to mention Rs. 50,000 against the agreed rate of Rs. 20 Lakhs, it is not agreeable.

The sub registrar will reject the document presented for registration if the stamp duty is not paid as per the guidance value, besides this great difference in sale value is not acceptable.

The vendor is not bound to accept the buyer's dictates,

The sale agreement will remain cancelled if the buyer is not forthcoming for registration within the stipulated time.