Unregistered agreement to sell on a plain paper
akash
(Querist) 09 May 2011
This query is : Resolved
Hello all,
I executed an unregistered agreement to sell my property in New Delhi. The agreement was done on the broker's letterhead and was not registered. Due to some dispute between the buyer and myself after execution, I would not like to go ahead with this transaction and am ready to refund the entire advance (bayana) with an interest if required. The agreement states that I need to refund double the amount of the advance. My question is- is this agreement enforceable in the court, given that its on the broker's letterhead and is unregistered? Other similar questions that I've seen have mixed replies regarding the legal validity of such an agreement.
Thanks in advance for all your help
adv. rajeev ( rajoo )
(Expert) 10 May 2011
agreement on broker's letter head is not admissable, but if he filed the case you have to contest on this ground.
R.Ramachandran
(Expert) 10 May 2011
The agreement is only an agreement to sell (which is not required to be registered) and not a Sale Deed (which is required to be compulsorily registered). The agreement on the letter head being only an agreement to sell, is very much enforceable.
akash
(Querist) 10 May 2011
Thanks Mr Rajeev and Mr Ramachandran.
Mr Ramachandran- does the fact that this is done on broker's letter head and not on a stamp paper make a difference to the validity?
Thank you again
R.Ramachandran
(Expert) 10 May 2011
No. It won't make any difference whatsoever.
akash
(Querist) 10 May 2011
Thanks Mr Ramachandran, I came across these two links below, which say that ‘AGREEMENT TO SELL’ is now required to be registered. I'm not sure if they are actually referring to the Sale deed instead of the agreement to sell, as you said is the case?
http://www.dchfcdelhi.nic.in/stampduty.htm
http://rcs.delhigovt.nic.in/regcop/act02.htm
R.Ramachandran
(Expert) 10 May 2011
Dear Mr. Akash,
Since you had only executed an agreement, and did not put the buyer into possession of the property, the amended provisions of Section 17(1A) of the Registration Act 1908, and the amended provisions of Section 53A of the Transfer of Property Act, 1882 would not come into play.
The prospective buyer would be able to press for specific performance of the contract based on the agreement mentioned by you.
a.manoharan
(Expert) 10 May 2011
if agreement period is more than 1 year is to be compulsorily registered
R.Ramachandran
(Expert) 10 May 2011
Dear Mr. Manoharan,
What is this '1 year' requirement about? Where is it provided?
Guest
(Expert) 10 May 2011
The agreement is not valid in the eye of law and not enforceable as per specific relief act. More than 100 rs transactions must be compulsorily registered.
R.Ramachandran
(Expert) 11 May 2011
Dear Mr. Ganesan,
Can you please quote the legal provisions on the basis of which your reply is founded.
