Registration of Sale Agreement Compulsory

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. Now, if you are wondering if it is mandatory to register the purchase contract, I would say that it is advisable. The reason for this is that the Supreme Court has issued numerous judgments on the basis of a purchase contract registered in favor of the buyer when a seller attempts to commit a fraudulent act. Often, the seller takes a symbolic amount from different buyers and sells the property to another party. To avoid such actions, it is advisable to enter the process of registering the purchase contract. A purchase contract is promised in the future by the seller to the buyer. It is a document signed between the two parties that the symbolic amount has been received and that the seller transfers the property on behalf of the buyer. All details of the past and future transaction are specified in the purchase agreement. To understand the conflict between RERA and the Registration Act, it is important to understand the difference between the contract of sale and a deed of sale.

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. 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. To register the purchase contract, you must go to the SRO and pay the necessary stamp duty to complete the registration procedure of the purchase contract. A deed of sale is a legal document to prove the effective transfer of ownership from the seller to the buyer. It is absolutely mandatory to register a deed of sale.

A deed of sale contains details, including details about buyers and sellers, real estate area, construction details, sale amount (token, pending), date of ownership, etc. 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. In addition, a purchase contract does not require mandatory registration under section 17 of the Registration Act 1908 (Registration Act). In making its judgment, the Supreme Court relied on the Real Estate Regulation Act. The law states that neither party to the transaction may make changes to the purchase agreement without the consent of the other party and that both parties must comply with the terms of the agreement. “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. “When we analyze the provision, we can understand that the document to which it refers is a contract of sale.

In addition, it is also stated that the contract of sale as such falls within the category of Article 17(2) of the Law on registration as a document which cannot be compulsorily registered. “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”. Article 13 of the law prohibits a developer from accepting an amount of more than 10% of the cost of ownership of a buyer without operating an ATS and without having registered such a TTY. However, section 13 does not specify under which statute — i.e., the Registration Act, the HPA or the Act itself — such a registration would fall. It appears that Paragraph 13, without express provision, entails the amendment of Article 54 TMG and Article 17 of the Registration Act, which do not provide for the compulsory registration of ATS. The Real Estate (Regulation and Development) Act 2016 (Act) was fully notified on 1 May 2017. Section 3 of the Act requires the registration of a real estate project by the developer if the developer intends to advertise, market, reserve or sell a property in the project. Registration is also required for ongoing projects for which the proponent has not received a certificate of completion. Therefore, the law applies not only to future projects, but also to ongoing projects whose construction began before May 1, 2017. For some ongoing projects, an ATS covering the rights, obligations and obligations of the parties would have been clearly implemented and buyers would have made partial payments for the full consideration. The amount of the payment depends on the payment plan chosen by the successful tenderer, i.e.

the connection to the construction or the fixed period. In this context, Article 13 of the Act now provides for mandatory registration of the ATS. Registering a purchase agreement is a smart decision, as it is also supported by various laws such as the Indian Contracts Act, the Specific Relief Act, and various housing laws enforced by many states. The Uttar Pradesh Apartments Act 2010 also requires that all sales contracts be registered in UP. The court had ruled, on the basis of the legal provisions, that the contract for the sale of immovable property in Uttar Pradesh must be a registered document and that an unregistered agreement on the sale of immovable property as evidence was inadmissible. Section 13(1) of the RERA Act 2016 states: “A developer may not accept an amount greater than ten percent of the cost of the apartment, land or building as an advance payment or application fee from a person without first entering into a written agreement on the sale with that person and registering the said contract of sale. in accordance with any law currently in force”. Therefore, the most important thing is to register a purchase contract, and then only the transaction of sale or transfer of ownership is called complete and valid. .