Sale Agreement Process

mp_pk
Posts: 5
Joined: September 3rd, 2012, 6:31 pm

Sale Agreement Process

Postby mp_pk » April 30th, 2013, 1:40 pm

What is the process of getting a Sale Agreement Registered?

I have heard that it is important to get the sale agreement registered, as a non-registered document does not have any legal bearing and any deal made on the basis of it is considered void.

So want to know if both Seller and Buyer have to be present @ the sub-registrar office to register the sale agreement ?
OR
Is it possible to register the document and later get it signed by the Seller ?

arigilamurali
Posts: 67
Joined: May 7th, 2010, 9:37 am

Re: Sale Agreement Process

Postby arigilamurali » May 1st, 2013, 10:42 am

Hi,
In order register agreement of sale, both parties required to be present before office fof the Sub Register with deed of agreement and also stamp duty and registration duty Demand drafts in the name of concerned sub registart.
Secondly, the analyzing that un-registers agreement of sell is void is wrong law dos not contemplate for complsary registration for agreement of sale as it is option of the parties to register or not register, but it is mandatory to pay requisite stamp duty as fixed.
The registration of sale deed absolutely compulsory.

You can register agreement of sale at any time irrespective date mentioned thereon.

regards
murali
adv

viksat82
Posts: 104
Joined: July 6th, 2014, 5:14 pm

Re: Sale Agreement Process

Postby viksat82 » February 1st, 2017, 5:45 pm

As this sale transaction is involved heavy amount and lot of fraud is happening.

I need advise how to make the transaction genuine and smooth
and safeguard the token advance and money which may not enter the Sale agreement.

Say the site dimension is 30 x 40
Guidance value @3000/- say -- 36 lakhs
Sale amount(Market price) is @4000/- say -- 48 lakhs

Step A

Sale Agreement

Owner or Agent will demand for high token advance say 15 lakhs.
Out of which 3 lakhs is entered in the sale agreement as token advance.
and 12 lakhs will not be entered in the sale agreement (which is the difference
in amount from Actual sale amount and guidance value amount)

How to safeguard these amounts in case sale would not happen for any reason
Either buyer refuses to buy or seller refuses to sell

Step B

Sale deed

How to complete the transaction smoothly? account all the money involved.

msn1270
Posts: 1318
Joined: June 17th, 2009, 2:21 pm

Re: Sale Agreement Process

Postby msn1270 » February 1st, 2017, 9:51 pm

In My opinion, If you can't mention the full amount in your sale deed, better avoid the transaction.
Nowadays everywhere IT Dept is tracing the money flow. if your transaction value is more than Rs. 30 Lakhs,
your income source will be scrutinized against the transaction vale. Whether you pay in Legal way or illegal way,
can be concluded easily & you may end of up in trouble.

That is the reason for drop in the no of transaction at the sub-registrar office since last one quarter.
Think twice before going for such deals here on wards.

if you still want to go with cash component as part of your transaction, you are also doing fraud.

viksat82
Posts: 104
Joined: July 6th, 2014, 5:14 pm

Re: Sale Agreement Process

Postby viksat82 » February 1st, 2017, 11:32 pm

I agree. But even if we enter entire 15 lakhs as token advance entered in Sale deed,
how to recover that money if the transaction did not happen.
Because it is easy to give money and is very difficult to take the money back.
I have faced some difficult time in the past even while renting the house,
Owner does not pay the advance back unless he finds some one else to rent that property and get that money from some other party,
which should not be the case if he is owner with good intention.

And what is the maximum amount one can pay at the time of sale agreement say sale amount is 48 lakhs,

msn1270
Posts: 1318
Joined: June 17th, 2009, 2:21 pm

Re: Sale Agreement Process

Postby msn1270 » February 2nd, 2017, 10:10 am

My opinion, if you are going for direct transaction(without Bank Loan), don't pay anything more than Rs.10,000 as token advance, since you are collecting only the full list of documents copies from the seller, which is nothing but Xerox copy cost for legal verification. Once your legal and paper validity is satisfied over, go for direct sale deed within 2-4 weeks, instead of sale agreement and waiting for 90 Days.

Only in case you are going for a bank loan, you need to go for the sale agreement & its registration as there is a scrutiny & processing time from the bank. But in this case also don't pay anything more than Rs. 50k or Rs. 1 lakh & you better declare the full amount in your agreement. Do not hide anything. At least you have proof to file a case. In case of unaccounted Cash component, you can't claim it also.
Last edited by msn1270 on February 3rd, 2017, 9:53 am, edited 1 time in total.

swamy_blr
Posts: 152
Joined: May 20th, 2016, 6:00 pm

Re: Sale Agreement Process

Postby swamy_blr » February 2nd, 2017, 4:49 pm

Hi Viksat,

In your case, If the Seller/Agent is demanding the Token Advance of 15 Lakhs - Then you should give 10K to 25K as cash advance and Rest of the amount in Post dated Cheque and ensure you should register (Sale Deed) the Property within that Time (before Post dated cheque realization).

Make an Sale agreement covering the post dated cheque & Cash Advance.
Once the Sale deed is done you can cover full amount in the Sale Deed and get back the Post dated cheque so that your money is also safe and Seller have assurance you are going to Buy the site.

rgds
Swamy

viksat82
Posts: 104
Joined: July 6th, 2014, 5:14 pm

Re: Sale Agreement Process

Postby viksat82 » February 4th, 2017, 12:10 pm

Hi Swamy
As per your suggestion, if buyer do this seller is in very safe condition.
and buyer is at heavy risk. I am asking other way round to safeguard the buyer.
Because usually if buyer is direct party (not the broker) he will be at high risk because real estate market is driven by seller
or in other words it is dominated by seller at least in Bengaluru.

swamy_blr
Posts: 152
Joined: May 20th, 2016, 6:00 pm

Re: Sale Agreement Process

Postby swamy_blr » February 6th, 2017, 12:00 pm

Hi,

In this case how the Buyer is in Heavy risk, Since Buyer is giving the Post dated Cheque with Contract agreement (Mentions the Token Advance + Post dated Cheque) and Notarized. Till the actual sale deed is not happen the Seller can't realize the Cheque considering the future date.

Not sure how long the Buyer will wait to do the Transactions, If the Sale is not happen within agreed timelines then seller has rights to sell his property to others and Buyer can cancel the Post dated cheque at Bank.

Didn't get the point what you want to safeguard from Buyer's perspective.

msn1270
Posts: 1318
Joined: June 17th, 2009, 2:21 pm

Re: Sale Agreement Process

Postby msn1270 » February 6th, 2017, 6:27 pm

Hi

Nothing is one sided market. Basically all the sellers are surrounded by the Brokers or proxy sellers. They are the one's who try to take the advantage from both seller's & buyers for their personal vested interest. You need to make sure, you are negotiating with the actual seller.It all depends on the seller's obligation and how you take the situation under your control. Everyone will have some needs and some constraints. Without any weak points, no one like to sell their assets. You must have a counter point for all their demands. That's all. Once you convince them that you are a genuine buyer having money in hand and you are looking for an early transaction within a set boundary, you can bargain with any seller.


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