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pradeep (self employeed)     10 March 2010

Land sale agreement

Hi,

1) On 14th Dec 2009 Land Owner made Sale agreement with me. I paid him 200000.(Sale agreement value is 1500000 with two years time period)

2) Land owner made another sale agreement with some other person on 4th Jan 2010. He paid 50000(Sale agreement value is 1400000 with two years time period)

Now Which one is valid and what is next. pLease guide me.



Learning

 25 Replies

A V Vishal (Advocate)     10 March 2010

Is the agreement registered?

pradeep (self employeed)     10 March 2010

No,...both the agreements where not registered.

A V Vishal (Advocate)     10 March 2010

Technically both are invalid.

Jithendra.H.J (Lawyer)     10 March 2010

Law does not say that the sale agreement has to be registred,

 

registration is not mandatory

A V Vishal (Advocate)     10 March 2010

Mr Jithender

Refer S.53A of transfer of property act as amended by act of 2001

1 Like

A V Vishal (Advocate)     10 March 2010

Originally, an agreement to sell an immovable property did not require registration and on the basis of the same, there could be part performance and possession under Section 53A of the Transfer of Property Act. However, the following amendments have been made to the Registration Act and the Transfer of Property Act:
Section 17 of the Registration Act:
By an Amendment Act of 2001, sub-section 1(A) has been introduced in Section 17 to the effect that every agreement to sell has to be registered with the registration authorities under the Registration Act, 1908, if the benefits of part performance and possession under Section 53A of the Transfer of Property Act are to be availed of.
Section 53-A of the Transfer of Property Act:
Correspondingly, Section 53A of the Transfer of Property Act also has been amended to the effect that for an unregistered agreement to sell, the benefit under Section 53A is not available. This amendment also was made through the Amendment Act of 2001.
After the aforesaid amendments, to get the benefit of equitable title through part performance and possession under Section 53A of the Transfer of Property Act, the following legal documentation has to be complied with:
An agreement to sell an immovable property being registered with the registration authorities under the Registration Act, 1908;
Subsequent possession being given of the immovable property to the purchaser in part performance of the aforesaid agreement to sell.
If the possession and part performance is to be recorded in writing through an agreement, it has to be stamped at the stamp duty payable.
2 Like

adv. rajeev ( rajoo ) (practicing advocate)     10 March 2010

Agreement of sale registration is mandatory if the possession of the property is handed over sec: 34 of the stamp act.

High court of karnataka's judgement says that if possession is handed over and agreement of sale is regd., then only court fee attracts if suit for declaration is filed, if not then court fee and penalty of 2% on the total sale consideration and 10 times penalty on the 2% calculated amount.

adv. rajeev ( rajoo ) (practicing advocate)     10 March 2010

You will have to file a suit for declaration  on the basis of the agreement of sale exeucted in your favour, notice should be issued to the seller before filing the suit giving him opportunity to exeucte the regd., sale deed showing your ready and willingness to purchase the property by paying the balance amount
 

G. ARAVINTHAN (Legal Consultant / Solicitor)     10 March 2010

better to go before a court to file a suit for specific performance

G. ARAVINTHAN (Legal Consultant / Solicitor)     10 March 2010

you have to issue notice to land owner and subsequent agreement holder and immediately file suit.

 

You can not get any injunction as you are not in possession and the agreement not registered

Jithendra.H.J (Lawyer)     10 March 2010

Possession plays the important role.........

Jithendra.H.J (Lawyer)     10 March 2010

by reading  the query, 

 

i dont think in this case possession is handed over to intending purcahser

narendra_vakhil (Advocate)     10 March 2010

I agree with Mr.Jithendra.H.J, if the possession is not handed over at the time of Sale Agreement then it need not be registered. you can file a suit for specific performance. 

A V Vishal (Advocate)     10 March 2010

But then in view of amendment of s.17 of the registration act what happens to part performance leave alone possession of the property.

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