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Samazdar Babu (Nagpuri)     09 February 2010

Unregistered sale deed

Hello all,

I have bought a resale flat with bank loan on 5 Feb 2009.
The seller had a home loan on the property

Registered the agreement to sale by paying full stamp duty in 14 Jan 2009 with promise to pay remaining amount within 2 month.
Applied for a bank loan and got the cheque for previous loan foreclosure and of remianing amount to seller.

Now the seller is asking to handover the remaining payment cheque issued by bank on unregistered sale deed.
He is orally agreeing to register the sale on in first week of April as he can postpone paying capital gain tax in assessment year 2010-11.
Seller is also ready to give posession of the flat on unregistered deed.

The original propery documents of the seller are already attached to my home loan case.

Will it be safe to do the unregistered sale deed upon full payment with possession on the oral promise to register the same in future.

Wil the unregistered deed will hold any legal validity as I made full payment and got possession?

I will appreciate your openion on this


 10 Replies

Parmanand Sharma (Advocate)     10 February 2010

Unregistered Sale deed can not pass valid title.

Isaac Gabriel (Advocate)     10 February 2010

Everything has gone on goodfaith. Taking too much risk may cause problems late.For transacting immovble properties it is always better to go in for registered documents.In you case,get the document registered befor completing the transaction in full. Though the bank has issued loan on unregistered deed, it will definitely insist on registered documents in your name.


Samazdar Babu (Nagpuri)     11 February 2010

Thanks for your reply.

I have decided to to complete the sale only on registered sale deed. My registered agreement to sale ends on next month. What can I do to ask the seller to register the sale deed before that? Like my case, most Banks in my city provide loan on Registered agreement to sale with full payment of stamp duty. What are my leagal options if seller now refuses to do sale deed (can he legally refuse this)? I have got the cheque from bank of remaining payment and already started paying interest on loan. 

I will appreciate your openion on this.

Isaac Gabriel (Advocate)     11 February 2010

Dear Samazdar, 

                               It is better to consult a lawyer with all your documents in hand befor proceeding further

g s pandey (advocate)     11 February 2010

unregistered sale deed does not carry any sanctity.

Samazdar Babu (Nagpuri)     16 February 2010

Hi, Just wanted to clear few points. I do have a Registered agreemnet to sale with full stamp duty paid.  I also have a check of final payment (obtained by bank loan) ready for the seller.

The sellar is asking to delay registering the sale deed as he want to delay paying capitol gain tax to next financial year. He has offered to give payment receipt for full payment, possesion on stamp paper and possession of actual property along with sign on all transfer document like society share certificate, electric meter, property tax etc. He is also willing to sign a sale deed but want to register the same in first week of April as the date of registraion will be considered for capital tax gain purpose.


Can the seller in future refuse to register the sale deed (all stamp duty already paid, so this will be done on Rs. 100 stamp paper)?

What is my legal stand on the property if seller refuses to register (I will have full payment receipt, registered agreement to sale, possession, share etc)?

B K Raghavendra Rao (Senior Advocate)     16 February 2010

If the seller refuses to get the property registered in your favour, the only option you have is to issue him a legal notice for getting the property registered in your favour and then if he does not, file a suit for specific performance under Specific Relief Act. 

1 Like

Samazdar Babu (Nagpuri)     17 February 2010

Thanks all for replaying.

Is there any chance the seller can refuse to complete the deal. What could be the end result of legal battel. I am more interested in buying the flat and not in getting any compensation due to refusal by seller. Thanks.

Dilip Kumar Borah (Manager-Land)     20 February 2010

I suggest you should post a letter to the seller stating that you are willing to pay the balance amount within  31st March,2010 subject to the condition that both both execution & registration  of sale deed and payment of the remaining portion of money are done simultaneously on the same day. If the Seller refuses to accept the same due to his own problems, the letter would serve as testimony that you are not violating the registered Agreement. After 31.3.10, I think there would not be any problem in making payment and registering the sale deed on the same day. 

1 Like

innocent (foreman)     22 October 2012

dear sirs, i am in some problem pl help me, i have property at T.N. i made an unregistered sale agreement with a buyer. advance 5 lakhs,  rental advance (2 lakhs) of an existing tenent mentioned in agreement. sale value 45 lakh. agreement date 10-10-2010 . main terms and conditions. time limit six months. if fault in part of me to execute sale deed in time limit the buyer will deposit the balance amount 38 lakhs (45-7) in court, and if fault in part of buyer he will lose his advance amount.

now the problem: the seller prolonged to execute the sale deed, i waited for 15 months but no responce. at atlast i returned the adv. 5 lakh in front of mediater and asked to return my sale agreemnt. this time also he prolonged and pulled time. meen time he approached my tenent without my knowledge showed him sale agreement copy  and paid him advance amount + one lakh (total 3 lakhs) and took possention of property. and keeps silence.   now i lost money. held in fake agreemnt. lost possention of propery .  what shall i do? 

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