Real estate laws have made registration of sale agreement compulsory

Q: Real estate laws and many judgments delivered by the Supreme Court have mandated the registration of sale agreement.

Samrat,

19th January 2016

Legal in Mumbai

real estate

property buyers

supreme court

real estate laws

registration of sale agreement

builder-buyer agreement

indian registration act

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Replies (2)

@Saras,
And the disadvantages of not registering a sale agreement was specifically highlighted by the apex court in its judgement in the TG Ashok Kumar Vs Govindammal case in 2010.

Where an unethical property developers enter into agreements of sale and take huge advance money, and then sell the property to others, thus, pushing the original agreement holder and the future purchaser into litigation. Registration of agreements of sale will reduce such litigation.

jitu jayswal,

19th January 2016

Comment

It is true and multiple Supreme Court and high court judgments have held that unregistered agreement of sale will not be recognised in a court of law.

Lewin G,

19th January 2016

It is very clear with the Property registration act that 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.

jitu jayswal,

19th January 2016

But in many cases, it is found that in spite of the legal provisions, 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 actions as they also stand to lose out on revenues.

Saras, Noida

19th January 2016

But it is heard that some developers are finding gap in the legal provisions and as a result it is exploiting many home buyers in the NCR. 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.

Lewin G,

19th January 2016

Comment

Hi Lewin,
But at the same time, 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 Apartment Act 2010 also requires all sale agreements to be necessarily registered in UP.

Saras, Noida

19th January 2016