Specific performance agreement
Rohit Gadsing
(Querist) 10 May 2014
This query is : Resolved
Agreement to sell executed & notarised on 10.08.2013 on 500 Rs stamp paper
Buyer paid More than 90% of price by crossed cheque by the end december 13
Buyer on 15 jan 14 approached seller for registration & both decided to registered it on 20 feb 2014 & on 15 feb 14 buyer paid stamp duty & registration fees.
On 20 feb 14 seller came to registration office and refused to sign and asked for extra amount over above sales consideration price as stamp duty valuation increased by Jan 14.
In such case what are the remedies available with buyer as seller is not ready to any compromise & amount he is asking for is quite high which buyer can't afford to pay.
Guest
(Expert) 10 May 2014
You should file a Suit for Specific Performance and Simultaneusly an Injunction/Stay Order Restraining the Seller not to have any transaction related to the property which could be applied even during vacation.Consult a Lawyer.
Rajendra K Goyal
(Expert) 10 May 2014
Repeated query:
http://www.lawyersclubindia.com/experts/Property-transaction-not-getting-reistered-471451.asp#.U244xij9GRS
T. Kalaiselvan, Advocate
(Expert) 11 May 2014
Unregistered sale agreement document is not legally valid hence a suit for specific performance of contract will not be maintainable. Ask the seller to return the consideration amount and settle the things amicably or else the only option is to file a money recovery suit based on the unregistered sale agreement considering it as receipt towards the money paid.
Guest
(Expert) 12 May 2014
I do with draw my above suggestion and Endorse the Right opinion of Mr.T.Kalaiselvan.(hope there should be no penalty for me)
Anirudh
(Expert) 12 May 2014
@ Mr. Kalaiselvan, only those agreement sell where the possession of immovable property has been handed over to the buyer, if unregistered, the document will not be admissible as evidence. But, is it true for an agreement to sell, where possession has not been given? Pl. clarify.
@Rohit Gadsing: If the seller is asking for the only the difference in the Stamp duty (as applicable in February, 2014 and that was prevalent in August 2013) it is understandable and it is payable by the Buyer. The seller will definitely have a point to score and in all probability the court will go in his favour.
But, if the seller is asking for over and above the difference in stamp duty, then you have a point and you will get favourable verdict. But, once the matter reaches the Court - you will definitely have to shell out the money as fee to the lawyer, court fee etc., apart from that the case being civil in nature, may drag on for some time - say a year or two. Therefore, weigh all your options and proceed accordingly.
T. Kalaiselvan, Advocate
(Expert) 13 May 2014
@Mr. Anirudh: You may see my opinion in which I have clearly stated that "Unregistered sale agreement document is not legally valid hence a suit for specific performance of contract will not be maintainable.", which you have agreed yourself in your clarification above. The question is here about the refusal to perform his part of the contract by the vendor hence now it becomes a legal issue and not otherwise as a subsequent clarification raised by you in this regard.
The query is about whether the vendor's demand for the difference in stamp fee is sustainable and on refusal to pay that, he is not willing to register the sale as per agreement, hence, since it is an unregistered agreement, you cannot enforce it through law, so try for the solutions accordingly or can file a money recovery suit considering the unregistered sale agreement as a receipt for the money given.
This is my opinion and I dont find any legal infirmity in it.
Anirudh
(Expert) 13 May 2014
Dear Mr. Kalaiselvan,
I beg to differ.
All that I said was that an agreement to sell is required to be compulsorily registered only when there is a part performance i.e. possession of the property has been handed over against consideration.
If possession had not been handed over, even after receiving part consideration, the said agreement is not required to be registered.
Therefore, I desired to know from you, the legal basis on which you have indicated that "Unregistered sale agreement document is not legally valid hence a suit for specific performance of contract will not be maintainable" especially in the fact situation where the possession of the property had not been given.
