Question on sale agreement

Querist : Anonymous (Querist) 13 September 2011 This query is : Resolved
I have a question with regard to buying of a propery.In case the builder gets into normal (not registered)agreement to sell a property to person-A & registers the propertly to person-B before agreement expires, what would be the consequence ? Will person-B have full rights as its regisered to him/her ? If so,what can person-A do ? Will he/she have any righs to get the property in any case ?

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Chanchal Nag Chowdhury (Expert) 13 September 2011
Yes. B will B have full rights as its regisered to him/her, provided he/she did not know of the (not registered)agreement to sell a property to person-A.
A can do the following:-
a)File a complaint u/s 420,406 etc. of IPC.&
b)File a suit for damages & compensation.

Raj Kumar Makkad (Expert) 13 September 2011
A buyer should be vigilant in all ways prior to purchase of the property. In the given case B has full rights over the property untill it is reversed by court as a consequence of suit for specific perofrmance filed by A who is already holder of an agreement.

Though SC has now come openly in favour of registered agreements so that such type of disputes may not occur but still B can not remain happy unless the matter of A is not resolvved finally.

Devajyoti Barman (Expert) 13 September 2011
Since the agreement for sale does not create any interest in the property the person in whose favour the property is registered would be in much better footing than the person who has only sale agreement to take solace.

Moreover since the sale agreement does not constitute constructive notice, the second person who has registered the property would always be considered as a bona fide purchaser without notice as a result of which the suit for specific performance which may be filed by the first person would not meet with success except the monetary relief about which the second purchaser has nothing to do.

ajay sethi (Expert) 13 September 2011
i agree with experts

prabhakar singh (Expert) 14 September 2011
Legal position stated by every one is correct
but it is high time that except UP we do not have law that makes registration of an agreement to sale compulsory,which shall as of necessity be presumed to be a notice to subsequent buyer washing out the anti dated plays completely .

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