Amit (cio) 19 March 2016

Query about agreement to sale and sale deed for resale flat

I am planning to purchase resale flat in mumbai through Bank Home Loan. Please Guide

1.I will be paying 5% amount of Sale value as Earnest money/ Advance money

2. i will be executing agreement to sale and will be paying 20% amount of Sale value.

3. i will pay the stamp duty & regsitration charges on full Sale Value.

4. I will submiit the Agreement to sale to Bank for loan of 70%

5. After getting Loan check i will Execute the Sale Deed in which it would be mentioned that 5% of balance amount shall be paid within 2 month of Sale deed at time of possession.

Now my query is

1. is it compulsory to regsiter the Agreement to Sale.

2. If i paid registration charges at Agreement to Sale then do i have to pay Registration charges for Sale deed also. What will haveto be done at Sale deed?

3. In Sale deed is it allowed to keep 5% balance amount to be paid after 2 months as the possession is after two months of sale deed.

4. My Sale Shall be considered complete when i pay the full amount or when i execute the sale deed

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1 Replies

Adv. Deepak (Advocate) 19 March 2016

1. Yes, it is compusary to register agreement to sale of immovable property.

2. At the time of Agreement to Sale, you are required to pay the registration charges which are 1% of the market value or actual consideration, whichever is higher. At the time of sale deed, you will be required to pay the minimum registration charges which are fixed.

3. Your sale deed will not be complete unless you pay the total cossideration. So it is advisable to execute the sale deed only after making the total payment an stating the total consideration has been paid as of today and no balance is there.