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RajaRajachozhan (retired )     01 November 2020

Agreement to sell through bond paper

The buyer of the house property is not willing to Register the "Agreement to Sale" of the property but instead desires to have it done through BOND. (His intention is to avoid the cost of Registration)   What is the legal validity of the Agreement to Sale through BOND?



 9 Replies

Sridaran Ganapathysubramanian   01 November 2020

The sale agreement should be registered as per section 17 of Tamilnadu registration act,as per 2013 amendment.prior that sale agreement need not be registered.It varies from state to state.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     01 November 2020

Originally posted by : RajaRajachozhan
The buyer of the house property is not willing to Register the "Agreement to Sale" of the property but instead desires to have it done through BOND. (His intention is to avoid the cost of Registration)   What is the legal validity of the Agreement to Sale through BOND?

 

1. Property CANNOT be Sold without paying proper Stamp Duty and Registration Fees and Registered Deed.  This further amounts to cheating and swindling the Govt., of its Stamp Duty and Registration fees which is a prosecutable offence and any such document shall be impounded by Govt.

2. Further the Agreement must also be registered for Bank Loan and future Sale Purposes and to avoid Court litigation /disputes.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
 

RajaRajachozhan (retired )     01 November 2020

Thank you Adv Hemant Agarwalji, Your opinion is crisp and clear and I understand that Agreement ToSELL must be Registered.   Then only it has legal validity and it is an evidence entertainable in a Court of Law.   

But the the Buyer says through the Bond the spirit of the "Agreement to Sell " can be incorporated.   My question is whether such a BOND will have legal validity and whether it is entertainable in a Court of LAW?   Sorry to trouble you Sir.

Again thank you,  Rajaraja sozhan.

kavksatyanarayana (subregistrar/supdt.(retired))     01 November 2020

Yes.  The agreement of sale shall be registered before the Sub Registrar concerned.  To my best known, in Tamilnadu, the Stamp duty and registration fee are less for registration of agreement of sale.  

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     02 November 2020

Originally posted by : RajaRajachozhan
Thank you Adv Hemant Agarwalji, Your opinion is crisp and clear and I understand that Agreement ToSELL must be Registered.   Then only it has legal validity and it is an evidence entertainable in a Court of Law.   

But the the Buyer says through the Bond the spirit of the "Agreement to Sell " can be incorporated.   My question is whether such a BOND will have legal validity and whether it is entertainable in a Court of LAW?

 

1. You may go ahead with the SPIRIT of the Buyer's over-wise decision PROVIDED you are ready to be entangled in Legal Prosecution against you and the buyer for defrauding the Govt., and violations of Prevention of Money Laundering Laws, Income Tax Laws, Stamp Duty Laws and Registration Laws AND as well as getting the Sale Agreement impounded by Govt. Authorities and relevant prosecution thereof.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Kishor Mehta (CEO)     02 November 2020

The Buyer and Seller are equally liable for civil and criminal punishment in the deal that you propose to enter into. BOND paper sale is not legally valid.

P. Venu (Advocate)     02 November 2020

Is it sale deed or agreement for sale? To my knowledge, it is not mandatory that the latter be registered.

Dr J C Vashista (Lawyer)     03 November 2020

Agreement to sell is not necessrily / compulsory to be registered.

However, Sale Dee is required to be registered.

It would be better to contact and consult a local prudent lawyer for appreciation of facts/ documents, professional advise and necessary proceeding. 

RajaRajachozhan (retired )     06 November 2020

I thank all EXPERTS for their reply and guidance.


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