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Atul Mahori   09 December 2025

Agreement to sale for gpa

I have a builder floor which has a registered deed. The Govt has stopped registry in that area because builders had flouted building byelaws. Now only General Power of Attorney is happening there, that too via other states. I recently took advance to sell my floor. The dealer took signatures on some terms and conditions papers. He told me that he'll send me a copy after converting them into Agreement to sale (ATS), but never sent. I had some problems with dealer & the 2nd party lateron, and I asked them to cancel the deal. Then the dealer became aggressive & started threatening me with court's notice & told me that I have to pay double of advance money. I told him I'll not. (I think there was a condition that seller has to pay double, and buyer has to forfeit in case of stepping back from the deal , because that is a standard condition in that area.) After few days passed and he became little mellow & told me to settle it with 2nd party in meeting. He even hinted a better price. I have three questions. 1. When a property cannot be registered, does it make any sense of the Agreement to Sale? What if I reply to the notice (if he sends it), that let's close the deal legally via sale deed. Will it not trap the 2nd party because sale deed is not possible ? 2. Second question is more generic. Can a party force another party to pay double of advance money due to an Agreement to Sale ? 3. Last question - does it make my case any stronger that he has not shared the ATS with me, and took signature on simple papers, not on stamp papers ? What is the process to convert simple papers into an ATS ? I want to be sure that he is not bluffing. Note: I am aware about Supreme Court's decision on GPA, and Sale deed, so there is no need to mention them.


 7 Replies

Dr. J C Vashista (Advocate )     09 December 2025

1, Yes, it (ATS) makes a sense. Send proper reply to notice, if buyer/builder sends it, which is a hypothetical question.

2. Terms and conditions of ATS has to be perused, nothing can be presumed to form proper opinion and oblige.

3. You will have to wait and watch for the case to be instituted, facts mentined and prayer made therein.

T. Kalaiselvan, Advocate (Advocate)     09 December 2025

This seems to be hypothetical, however I endorse the opinion of learned senior expert JC Vashishtha Sir.

You may also consult an experienced lawyer in the local.

Atul Mahori   09 December 2025

Originally posted by : Dr. J C Vashista
1, Yes, it (ATS) makes a sense. Send proper reply to notice, if buyer/builder sends it, which is a hypothetical question.
2. Terms and conditions of ATS has to be perused, nothing can be presumed to form proper opinion and oblige.
3. You will have to wait and watch for the case to be instituted, facts mentined and prayer made therein.

Thanks for you answer Sir. 

My cuiriosity is that what can he ask in the notice. 

Can he ask to conclude the deal? 
Or he'll just ask to refund the advance in double ?

Another point I am thinking that why he is not sharing the ATS even after multiple requests. Will it help my case because I have sent him messages in WhatsApp asking ATS copy. 

P. Venu (Advocate)     09 December 2025

There could be no conveyance of immovable property except through a deed duly executed and registered. And it is impermissible to execute the conveyance through a PoA.

So also, there could be no arbitrary terms in ATS.

Dr. J C Vashista (Advocate )     12 December 2025

Wait and watch to receive notice which cannot be presumed, if it is not a hypothetical query. 

Atul Mahori   13 December 2025

Thanks for your information.
In that case, can that ATS even be admissible in a court because there is no possible remedy of a registered sale deed. Registration of property is stopped in that area by the Government. 

Hypothetically, how would you use that ATS in this situation ? 

As far as I remember , the ATS had same terms as used in a regular & registerted sale. I don't remember it had any mention of POA. 

Jatin Bajaj   18 December 2025

Agreement to Sell is not transfer to a title. Its only purpose is to create an obligation to execute a future sale deed. If registration of sale deed is barred by the State, then. Agreement to sell becomes unenforceable because law cannot compel performance of an illegal or impossible act. Section 23 of the Indian Contract Act defines unlawful object and section 56 of the Indian Contract Act defines impossibility of performance.


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