Law makes registration of sale agreement mandatory
Registering a sale agreement is a wise move as it is also backed by various apartment acts enforced by many states
Real estate laws and many judgments delivered by the Supreme Court have mandated the registration of sale agreement, ie, builder-buyer agreement, but some developers have managed to find loopholes in the legal provisions and exploited homebuyers everywhere in the NCR.
L e g a l e x p e r t s s ay t h at had Section 17 of the Indian Registration Act (which makes registration of documents like sale agreement mandatory) been in practice in real estate, thousands of property buyers would not have become victims of property fraud and malpractice.
Registering a sale agreement is a wise move as it is also backed by various acts such as the Indian Contract Act, Specific Relief Act and various apartment acts enforced by many states. The Uttar Pradesh Ap a r t m e n t A c t 2 0 1 0 a l s o requires all sale agreements to be necessarily registered in UP.
The downside of not registering a sale agreement was specifically highlighted by the apex court in its judgment in the TG Ashok Kumar vs Govindammal (2010) case.
“Unscrupulous property owners enter into agreements of sale and take huge earnest money deposits/advance, and then sell the property to others, thereby plunging the original agreement holder and the subsequent purchaser into litigation. Registration of agreements of sale will reduce such litigation.”
The judgment read: “If all agreements of sale are compulsorily registered that will go a long way to discourage generation and circulation of black money in real estate matters, as also undervaluation of documents for purposes of stamp duty. It will also discourage the growth of land mafias and musclemen who dominate the real estate scene in various parts of the country.”
Several Supreme Court and high court judgments have held that unregistered agreement of sale will not be recognised in a court of law. An important judg- ment on this issue was delivered by the Allahabad High Court in the Vijay Kumar Sharma vs Devesh Behri Saxena case in 2007. Sharma, the owner of a disputed 465 sq mt plot in Sector 15A, Noida, Uttar Pradesh, had received 7 lakh as earnest amount from Saxena and had signed a sale agreement with him on January 22, 1993.
Later, Sharma had refused to honour the agreement, arguing that no completed, final, legal and binding sale agreement had been registered by the parties and the existing agreement could not be received as evidence of the alleged contract.
The court, citing legal provisions, had held that the contract for sale of immovable property in Uttar Pradesh had to be a registered document and an unregistered agreement of sell of immovable property was inadmissible as evidence.
Despite the legal provisions, however, many buyers complain that even if they want to get their sale-agreement registered, most developers are not interested. In such a situation, legal experts say that the state governments should take strict measures as they also stand to lose out on revenues. of the land acquisition problem, their bookings were cancelled by the developers on one pretext or the other. The latter were hoping to sell the projects at higher prices and cancel the initial bookings, and the buyers could not take any action as they had not registered the sale agreement.
“Hundreds of cases of disputes between homebuyers and builders have arisen due to lack of clarity of terms and conditions at the time of paying booking amount. If homebuyers are aware of each and every detail of the project and know how and when they have to pay their installments, there won’t Roca, a bathroom products solutions provider has launched In-Tank Meridian, an integrated WC concept, marking the beginning of a new era in the world of the bathrooms. The WC includes the cistern in itself. In-Tank Meridian integrates the cistern into the WC and comes with the latest soft air technology, noise free flush system, soft close seat cover and it consists of an air pump that pushes the water from the tank to be any dispute later,” says Garg.
Revenue-earner for states
Other benefits of getting a sale agreement registered when the booking amount is paid will discourage investors and speculative sale of properties and allow state governments to earn revenues as well.
In many states, stamp duty charged on the registration of sale agreement is equal to the amount paid for the registration of sale deed. For instance, in Delhi, registration of a sale agreement invites 5% and 7% stamp duty of the total cost of the apartment for women and men, respectively. provide the dual 4.5/3 litre flush. The single body In-Tank Meridian WCs eliminate the need of installation for cistern or flush plate as the WC itself incorporates an integrated tank and flush system. The state-of-the-art features and designs have set new trend in WCs, thus contemporising each bit of the bathrooms.
Commenting on the new collection, Pau Abelló Pellicer, managing director, Roca Bathroom Products Pvt Ltd said, “The compact and wellrounded shape of In-Tank Meridians makes them an apt choice for innovative bathrooms.” This is equivalent to the stamp duty on sale-deed too. In Noida and Ghaziabad, however, only 2% stamp duty is charged on the registration of a sale agreement.
“The provision mandating registration of agreement for sale will allow state governments to earn some revenue each time an under-construction flat is sold by one buyer to another. At present developers are pocketing this money as ‘transfer charge’ from one allottee to another. Besides this, it will also discourage investors because they will also have to pay stamp duty on the registration of agreement for sale for each apartment and some percentage Housing for migrant bachelors/singles and families in cities like Delhi, Gurgaon and Noida is difficult and the main reason is the lack of trust by house owners. No player is addressing the real issue – that of trust-deficit. To bridge this gap, Nestaway has launched Family Rentals in Delhi.
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