Validity Period of an Agreement for Sale
sachin
(Querist) 11 May 2010
This query is : Resolved
Dear Friends,
My clients want to execute an Agreement for Sale for the purchase of an Agricultural Land. However the conditions for the purchase of the said land is that the Vendor should convert the said land into Non Agricultural land (NA) and also make a pukka road upto the said land.
Hence initially they want to execute an Agreement for Sale, pay full stamp duty on the agreed consideration and register the document.
On fulfillment of the conditions of the NA and the road, the sale deed between the parties shall be executed.
As we do not know the exact time period required for the fulfillment of the above conditions, how long can the Agreement for Sale be registered and kept (what is the validity) till the final execution of the sale deed.
Regards,
Sachin
R.R. KRISHNAA
(Expert) 11 May 2010
Dear sachin,
Parties are at their liberty to fix the time limit or even waive the time limit for an agreement.
Hence you shall draft/execute/register the agreement for sale by which both of you shall expressly agree that the registration of the property (sale deed) shall be made after the conditions (NA and road) are fulfilled by the vendor.
Best regards...,,
Theja
(Expert) 11 May 2010
The sale deed can be executed now also, but the specificationsor u may call it conditions (that the land in subject shall be a non-agricuktural land and that the pukka road shall be laid upto the land) shall be mentioned in the deed. Also, the deed shall provide the time limit within which the conditions precednet to shall be confirmed and the land shall be handed over to the transferee free from any encumbrances, say, "the land shall be absolutely delivered to the transferee/purchaser conforrming to all the conditions provided herein within 65 days of the date of this agreement."
Hence, the period is to be determined by the mutual consent of the parties. However, the period withint which the condtions precedne to a transaction shall be perfomed shall be reasonable.
niranjan
(Expert) 11 May 2010
It cannot be said sale agreement for agr.land, but it will be agreement for non-agr.land subject to conversion.One cannot assume the time tobe taken for conversion.According to me you should simply enter into agreement for NA land and fix some time for final execution of deed but with the condition that if the land is not converted into NA within certain period,the earnest money will be returned with interest etc.If the purchaser is not agriculturist he cannot purchase agr.land.
