If there is mutual understanding between buyer and seller then such conditional sale deed can be made. but you have to show the full amount of 1 Crore transaction and schedule of payment mention in it. and for seller prospectus point of view can mention cancellations clause in it.
Can a resale sale deed be signed on condition of balance payment
I intend to purchase a resale flat of around 1 crore While I can pay token and get a loan of ant 59/60 Lacs balnce amount will be paide after 1/2 months after sale of one of my old prooerty I want to take advantage of the discount in stam.fees on registration offered by Maharashtra Govt till 31/03/2021 Is it legally possible in to agreement to sell.and can the seller by mutual consent register a sale date mentioning balance payment and hand over Posession after bal.payment Is such a sale deed valid both legally and oractically
Asked 4 years ago in Property Law
Religion: Hindu
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9 Answers
- Yes, you can registered agreement to sell with the seller , after paying token amount , with all the details of further consideration amount.
- Further , after full payment you can execute sale deed in your favour.
- A sale deed conditionally is not legal and final .
The sale deed can be executed only after the full sale consideration is paid by the buyer to the seller or at least the full sale consideration amount mentioned in it and the applicable stamp duty .is paid.
The seller may not take a risk by giving false statement that he received the entire sale consideration amount.
However if the seller agrees for conditional sale to deliver possession of property after receiving the entire amount or to cancel the sale deed if the buyer fails to make payment within the time stipulated therein
You can discuss with the seller and proceed if he agrees for the conditional sale
You can execute register agreement for sale at present on payment t of Rs 60 lakhs .it can be mentioned balance amount t would be paid within 2 months
on payment of balance amount sale deed can be registered
Even if you make an agreement for sale prior to sale deed, it will still attract duty
If such agreement is made prior to 31.3.2021 then it will attract reduced duty
Once such agreement is registered then on any subsequent sale deed only Rs 100 duty will apply
How the payment is to be made is a matter of contract between the parties. So I dont see anything illegal
Such sale deed is very much valid. A sale deed can be executed by stating that the balance sale consideration will be paid after so many days giving pd cheques for the due amount. Such sale deed can be legally registered and possession of property taken if the seller is willing. But the sale deed will be regularized on the payment of balance sale consideration. Apart from saving on stamp duty the seller can save on TDS as till March 31, 2021 TDS is 0.75 per cent as against 1 per cent.
I refer tobreply by Shri Yusuf ji I agreed I can enter into sale agreement and pay stamp duty atcreduced rate by 31/3)21 But since it is said it doesn't indicate transfer of ownership and the sale deed done subsequently on nominal stam durybwill be valid like anyvreg sale deed done with full stamp duty
Asked 4 years ago
Remember that the sale agreement is not a registered title deed.
Only the registered sale deed would confer title of the property to your name.
You were advised to go for a conditional registered sale deed if the seller agrees for this arrangement to accept the balance of sale consideration at a later date or the failing which the sale deed shall stand cancelled.
You can discuss with the seller about this and proceed.
Enter into registered agreement for sale mention full consideration amount , advance paid by you and balance to be paid in 2 months
- Registrar can refuse to register the Sale deed , if consideration amount not paid fully on the date of registration .
- However, you can enter into an additional notarized agreement with the seller for the balance payment.