Is Agreement To Sale Mandatory

In cases where you have acquired and taken possession of a property under a sale agreement, the title to the land will still remain with the developer, unless a sales record has been subsequently executed and registered under the Indian Registration Act. Thus, it is clear that a security in a property can only be transferred by a deed of sale. In the absence of a deed of sale duly stamped and registered, no right, property or interest for a property, the buyer of the property. The verdict read: „If all sales contracts are forcibly registered, this will lead to a long way to discourage the production and circulation of dirty money in real estate and to undervalue documents for stamp duty purposes. It will also discourage the growth of the country mafias and muscular men who dominate the real estate scene in different parts of the country. „Any sales contract that is not a registered promotion (nature of sale) would fall short of the provisions of paragraphs 54 and 55 of the Transfer of Ownership Act and would not confer ownership and would not transfer any right to purchase property (except for the limited right granted under Section 53A of the Transfer of Ownership Act). A real estate sale agreement that provides for the sale on terms agreed between the parties (sales contract or ATS) does not in itself create any interest in the property or a charge. Section 54 of the Property Transfer Act, 1882 (TPA), defines the sale as a transfer of ownership at a price and provides that the sale of land worth more than 100 INR (cent) can only be done by a registered instrument. It should be noted that section 54 does not provide for the mandatory registration of the deed of sale, that is, the instrument used for the sale of real estate, but does not require the registration of the ATS. In addition, Section 9 deals with product pricing. Therefore, when a sale takes place, a transfer is immediate and the price is therefore safe and fixed, whereas, under certain conditions, the price is determined according to the circumstances of a particular case, so that a sale agreement is reached, but the sale does not take place. Under the Indian Registration Act of 1908, any interest transfer agreement must be registered on property worth more than 100 rupees. Therefore, if you purchased a property for sale as part of an agreement without a good state of sale, you will not receive any right or interest in the property that would be transferred under the sale contract. This absolute rule is subject to the exception of Section 53A of the Transfer of Ownership Act.

Section 53A provides that the seller has no right to disturb the purchaser`s possession if the purchaser has entered into possession of the property that is the subject of the transfer, while fully acquiring its portion of the contractual obligation.