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Swati   27 March 2023

Sales deed and agreement of construction

Hi, we r purchasing an under construction property in Hyderabad which is 95% complete and will be handed over to us in 2 months. Now we are planning to register the property however the builder has given us two documents which will be registered one is a sales deed which has 60% of the property value and the other agreement of construction which has the remaining 40% of the property value. Is this a standard way to register properties in Telangana? Will the bank have an issue with the reduced value of sales deed since we have taken a loan of 70% of total property value. 


 3 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     27 March 2023

60% and 40% are wrong.  The construction agreement shall be 95% + 5% only as per your statement.

Dr J C Vashista (Advocate)     28 March 2023

However, endorsement of 60% and 40% of consideration in the sale deed is illegal and arbitrary, if you did not agree so.

Show the document of "agreement to sell" executed between builder and yourself to a local prudent lawyer.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     28 March 2023

Agreement to sell consideration value is correct 

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