• Agreement to sale

Hello

is it mandatory to register the agreement to sale a property
does agreement to sale a property awards ownership to the buyer

regards
Asked 3 months ago in Property Law
Religion: Hindu

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11 Answers

Optional 

No, only records contract between buyer and seller. 

Yogendra Singh Rajawat
Advocate, Jaipur
23004 Answers
31 Consultations

Hello,

 

1)  Not mandatory to register. Whether the agreement is done orally or in writing, both are valid. 

2) No. Mere agreement does not transfer ownership to the buyer. Ownership will be transferred when the sale is executed, legal documents are made, and consideration is paid or promised to be paid. 

 

Suraj Wangate
Advocate, Mumbai
4 Answers

1) non registration does not affect validity of agreement for sale 

 

2) registered sale deed is necessary to confer clear and marketable title to property 

Ajay Sethi
Advocate, Mumbai
97230 Answers
7852 Consultations

1. Any document showing the consideration above Rs. 100/- has to be registered under the Registration Act.  However in practice many people avoid the registration of Agreement of Sale.

2.  The Agreement of Sale does not awards ownership to the owner.

Shashidhar S. Sastry
Advocate, Bangalore
5425 Answers
330 Consultations

- As per the Supreme Court , only a registered sale deed /agreement to sell is valid for the transfer of the property. 

-  Hence, on the ground of un-registered agreement to sell not award ownership to the buyer. 

Mohammed Shahzad
Advocate, Delhi
14641 Answers
224 Consultations

It is not mandatory to register the sale agreement, however the unregistered sale agreement cannot be enforced through court of law for registration of sale deed at a later date if either of the party is not willing to proceed as per the conditions, but this unregistered sale agreement can be used as an evidence to establish the transaction.

The unregistered or even registered sale agreement will not confer title to the property on  purchaser. 

T Kalaiselvan
Advocate, Vellore
87429 Answers
2348 Consultations

Hello, 

  1. Yes, it's 100% mandatory to have the Sale Agreement registered for it to be legally valid and binding.
  2. Yes, of the Agreement is registered it guarantees ownership rights over the property. It is also important to have possession and occupation of the property.

S J Mathew
Advocate, Mumbai
3596 Answers
175 Consultations

Dear Client,

The Indian law does not mandate the writing and  registration of an agreement to sell property but it is advisable that such an agreement be in writing and or registered because an unregistered document may not be acted upon by courts of law. The statement of sale by means of an agreement to sell does not even vest the title of the property to the buyer, it simply lays down detailed provisions of a sale. Title to the property passes only by operation of a sale deed, as per Section 54 of the Transfer of Property Act 1882. For this reason, the sale deed should be prepared and needful to register legally so that the title of property gets transferred appropriately. As for all these issues it is always advisable to consult a lawyer especially when in property related activities/businesses/transactions.

 

Hope you find this answer beneficial for resolving the dispute.

 

Anik Miu
Advocate, Bangalore
10285 Answers
121 Consultations

Hi,

 

Under section Transfer of Property Act and section 50 of the Registration Act, it is necessary and mandatory to register the Agreement for Sale to claim the title and the ownership of the property. Otherwise, you will be treated as an occupant of that property and not the owner.

 

Regards,

Niteish Agarwal

Nitesh Agarwal
Advocate, Mumbai
24 Answers
3 Consultations

Dear Sir,

It is not mandatory but if you file suit for specific performance then you have to pay penalty to the extent of 10 times of prescribed stamp duty to legalize unregistered sale agreement.

Kishan Dutt Kalaskar
Advocate, Bangalore
6193 Answers
491 Consultations

Yes it is Mandatory. 

 

Regards,

Adv Arunkumar Khedia

Bombay Highcourt

Arunkumar Khedia
Advocate, Mumbai
61 Answers

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