Registration Fee for Sale Agreement
This absolute rule is subject to the exception of Section 53A of the Transfer of Ownership Act. Article 53A provides that the seller is not entitled to have acquired the property granted to the buyer of the transferred property, while fully fulfilling its part of the contractual obligation to disturb the property so granted to the buyer. It should be noted that Article 53A provides the prospective acquirer with protection against the assignor and prevents the transferor from interfering with the purchaser`s property, but it does not repair the buyer`s ownership of the property. Ownership of the property remains the property of the seller. The purchase contract may or may not lead to an actual sale of the property in question. Some of the stamp duty laws, such as the Maharashtra Stamp Act, consider an agreement to sell a property on the same basis as an appropriate deed of transfer and are therefore subject to the same stamp duty applicable to the appropriate deed of transfer or sale of a property. Because of these provisions that require the payment of stamp duty on a contract of sale, people mistakenly perceive a contract of sale as an appropriate deed of sale. “A contract for the sale of immovable property is a contract under which the sale of such immovable property takes place on the terms agreed between the parties” – Article 54 of Article 54 also provides that “it does not in itself create any interest in such property or costs for such property”. Signing a sales contract becomes important in light of several factors.
First, it is legal proof that in the event of a dispute, buyers and sellers enter into an agreement on the basis of which the future course of action is decided. When you apply for a home loan, the bank will not accept your application until you sign a purchase agreement. The Supreme Court also reaffirmed the importance of the purchase agreement between the builder and the buyer, as it recently ruled that the period of allocation of a residential unit to a home buyer must be taken into account from the date of the builder-buyer contract and not from the date of registration of the project under the Real Estate (Regulation and Development) Act. 2016. The court also ordered the RERA authorities to order the payment of compensation to the builder in accordance with the contract of sale, the sanctity of which was maintained by that order. Even if the signing of the purchase contract does not mean that the sale is complete, it is a crucial step in this direction. For this reason, buyers should be fully aware of the conditions set out in the contract. “Any contract of purchase (contract of sale) that is not a registered deed of transfer (deed of sale) would not meet the requirements of sections 54 and 55 of the Transfer of Ownership Act and does not confer title or division of transfer in a property (with the exception of the limited right granted under section 53A of the Transfer of Ownership Act).” What the purchase contract creates is a right for the buyer to buy the property in question under certain conditions.
Likewise, the seller receives the right to receive the consideration from the buyer in accordance with its part of the General Conditions. In cases where you have purchased and taken possession of a property under a purchase agreement, title to the property will remain with the developer unless a deed of sale has been signed and subsequently registered under the Indian Registration Act. This clearly shows that a title deed can only be transferred by a deed of sale. In the absence of a duly stamped and registered deed of sale, the buyer of the property has no right, title or share in any property. In 2012, the Supreme Court of India ruled in the case of Suraj Lamp & Industries (P) Ltd (2) v. the State of Haryana, while dealing with the validity of sales of real estate by proxy, as follows: A deed of sale is a legal document that proves that the seller has transferred absolute ownership of the property to the buyer. Through this document, the rights and interests in the property are acquired by the new owner. A deed of sale usually consists of the following information: A contract of sale is a promise in the future that ownership will be transferred to the rightful owner, while the deed of sale is the actual transfer of ownership to the buyer. “Immovable property may be transferred only by means of a deed of assignment duly stamped and registered by law.
We therefore reiterate that real estate can only be legally and legally transferred/transferred through a registered deed of transfer. “It is clear from the above definition that a purchase contract contains a promise to transfer an asset in question in the future to meet certain conditions. Thus, this agreement itself does not create any right or interest in the property for the proposed buyer. The deed of sale is the most important legal document by which a seller transfers his right of ownership to the buyer, who then acquires absolute ownership of the property. Remember that both parties must comply with the conditions set out in the sales contract. Any party who violates any of the conditions set out in the Contract may be taken to court if the other party so wishes. All interested parties should also be aware that this document can be cited as legal evidence in court and that all those who have agreed to comply with the conditions are legally obliged to do so. Stamp duty and registration fees for a seed for sale vary in each state of India. Here are the fees imposed in different states as of 31.12.2015: In the event of the seller`s failure to sell or take possession of the property to the buyer, the buyer will be entitled to some performance under the provisions of the Specific Repairs Act of 1963.
A similar right is available for the seller under the contract to require a specific service from the buyer. A sale agreement is an agreement to sell a property in the future. This agreement defines the conditions under which the property in question is transferred. The Transfer of Ownership Act, 1882, which governs matters of sale and transfer of home ownership, defines a purchase contract or a purchase contract as follows: Under the Transfer of Ownership Act, a purchase contract, with or without possession, is not a transfer. Section 54 of the Transfer of Ownership Act states that the sale of property may be effected only by means of a registered instrument and that a purchase contract does not cause interest or costs on its object. On October 31, 2020, a 40-year-old man was arrested by Noida police for deceiving a bank of 2 crore rupees by falsifying deeds of sale and taking loans. On the same day, Madurai Main Session Judge G Ilangovan granted early bail to two sub-registrants arrested by the Dindigul District Crimes Division for registering documents without prior review. According to the police, the two registered the deed of sale without checking the debit certificate, as well as the original documents, parental documents, death certificate, etc. According to the Indian Registration Act of 1908, any agreement to transfer shares in a property worth more than one hundred rupees must be registered.
Thus, if you have purchased a property under a contract of sale without an appropriate deed of sale, you will not receive any right or interest in the property that is supposed to be transferred under the purchase contract. A sale agreement is an agreement to sell a property in the future. This agreement defines the conditions under which the property in question is transferred. Laws relating to the registration of real estate transactions in India. In this context, we would discuss the main differences between the two documents. Well, how crucial due diligence is when it comes to property-related documents becomes when we review the incidents mentioned below. (The author is a Chennai-based lawyer and the author of “Property Registration, Land Records and Building Approval Procedures Followed in Various States in India”) (The author is a tax and investment expert with 35 years of experience. . .