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Vikas   15 November 2015

Benefit of registering agreement to sell

Dear Experts,
Need support for the following --

Back ground.
Planning to buy an apartment in Indirapuram, Ghaziabad (NCR) in resale from Mr x in a xyz Builder Project.

Query 1
Is it mandatory that Agreement to Sell should be registered for it to be challenge able in court of law. The objective to 100 % safe guard the interest of buyer in the eyes of laws in case seller back out of the deal after taking 10% of the consideration amount. 

Query 2
If Agreement to Sell is not registered , but is only on non judicial stamp paper , is it not challenge able in court of law and does not registering it amounts to diluting the interest of buyer in any way

Query 3
If we opt for Registration of Agreement to Sale, what will the amount of stamp papers and registration fees. Consider the consideration amount of sale is Rs 100 and advance payment (mentioned in agreement to sale) is 10 % of 100 = Rs 10.

Query 4
Now the final sale will be executed, will I again need to pay the stamp duty and registration charges or the amount will be adjusted against the amount paid in Query 3 above.
Total registration amount = 7% of consideration amount = 7% of 100 = Rs 7
Rs 10 already paid in Query 3
So will I need to Rs 6 when final sale deed is done ?

Regards


Learning

 2 Replies

Nitish Banka (lawyer)     15 November 2015

Dear Vikas

Agreement to sell is not compulsorily registrable instruments and you may enforce for specific performance in courts.

Thanks & Regards,

Nitish Banka

9891549997

Anil Upadhyay (Lawyer)     15 November 2015

Agreement to sell need not to be registered, but Sale agreement shall be registered.

In UP Stamp Duty is 7% on consideration amount +2% Registration Charges.

Thanks.


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