The clause that sale will valid only “subject to realization of DD/Pay Order/Cheque is normal clause and there is not harm to purchaser or seller if such clause is included in sale deed.
Clause in Sale Deed
I am purchasing a flat. Agreement to sale is done. For the final deed, bank is insisting to first register the agreement post which D.D will be issued to the seller. Seller is against this and has asked me to add a clause saying " subject to realisation of D.D/Pay order. If such as clause is added, what are its implications on me. Is the agreement final. Is another documentation required from the seller ?
Asked 3 years ago in Property Law
Religion: Hindu
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14 Answers
Such a clause cannot be asded in any sale deed. The sale deed is final. But yes you may add that an amount of so and so is being given at the time of registration. If the bank is involved you may tell him that the bank will give him the draft.
Gentlemen, Thank you for your response ! The bank said they will provide only a copy of the dd before the registration. Seller is ready to sign only if he is paid beforehand or if the above clause in mentioned in the agreement. Will such a clause cause any problems in future when I am planning to sell the flat ?
Asked 3 years ago
The bank is doing what is generally done. There is no problem. Once the bank has given the dd copy why is he so paranoid. I mean the property registration is subject to the final payment.
seller is correct
how can the stupid bank require the seller to accept a COPY of the DD and write in the final sale deed that full payment is received?
it makes no sense
no prudent owner would accept this nonsense
if the seller is signing the sale deed then he should be handed the original DD at the time of registration itself and simultaneously the purchaser can be put in possession
i am sure such nonsense would only be by public sector banks!
Dear Sir/Ma'am,
The said clause that sale will be valid and is a general clause. there is no harmful repercussion or implication to any of the parties involved.
Such an agreement is final.
Thank you
- For further assistance, you can book a consultation with me.
There is nothing illegality or objectionable in the agreement.
No problem in having this clause; ,as realization of DD in his account is going to be recorded in the Banking transactions.
On the other hand, Bank's insistence seem to be unreasonable. You may try sorting this out with the Bank first.
Bank should furnish DD at time of registration
although the DD would be paid ultimately to seller he would not agree that only copy of DD is given
No harm in insertion of clause that it is subject to realisation of DD
The seller is worried about the safety of his money or property hence he is insisting on this clause.
As the DD especially the bank DD is always a confirmed payment, there is nothing to be afraid or worried about it by inserting the said clause in the sale agreement.
You may go ahead with the proposed clause to be inserted in the sale agreement.
This is a registered sale deed hence the seller is looking to secure his payment or property without understanding the facts that the DD is as good as hot cash.
Well you can allow him to insert the clause in the registered deed which in no way will hamper your future sale of this property because if the DD is dishonored then the sale deed itself would become invalid as per the clause, therefore you need not worry about the future sale of property which is not there with you.
1. There is no harm in adding this clause.
2. It is perfectly legitimate on the part of seller to insist on receiving the entire sale consideration before the execution of sale deed.
3. The bank is deviating from the practice.
- The seller can not believe no copy of DD.
What he will do with DD if you don’t hand over the DD later.
Basically Bank sends a person on registration date to handover the DD at the time of registration.
But this depends on state to state.
Ask your bank if this is possible.
- Seller wants to protect himself like you are asking question here to protect yourself.
The cause seller is asking is correct and it is used in many transactions.
It is completely safe to mention this clause in sale deed.
There will not be any problem in future when you want to sell.
- As per rule , the bank is right to mention that the DD will be deliver once sale deed will be executed in your name , so that bank will take the document in its possession for mortgage purpose.
- However, you can add this realisation of DD clause after giving the DD numbers in the sale deed after submitting a copy of the same.
- Since, this payment will be made by the bank , then there will be no implication on you,
- Further, if copy of the DD is attached at the time of execution of sale deed , then such type of clause is irrelevant.
