Ownership of all land should be clear and marketable, and it is said that it is done as such when executing the deed of sale. However, in practice, buyers make a sales contract as a precautionary measure, although they are aware that it does not create title to a property. A deed of sale is considered an authentic instrument and also establishes a clear title to the property, since it is a document subject to the obligation, pursuant to Section 17, paragraph 1, of the Registration Act 1908. However, section 13 of the RERA Act 20161 stipulates that a sales contract must be registered. Although this is not the case with the Registration Act 1908. Therefore, the validity of the sale agreement always becomes an unresolved conflict. By analyzing the provision, we can understand that the document listed in it is an agreement for sale. Moreover, the fact that the agreement on the sale as such falls within the category of Article 17, paragraph 2, of the Registration Act as a non-binding document. There are few drawbacks to the sale format of the sale; These are as follows:- An agreement for sale is an agreement to sell a property in the future. This agreement sets out the conditions under which the property in question is transferred.
Under the Transfer of Ownership Act, a sales contract, with or without property, is not transportation. Section 54 of the Transfer of Ownership Act provides that the sale of a property can only be done by a registered instrument and that a sale agreement does not create interest or fees for its property. Although the signing of the sale agreement does not mean that the sale has been completed, it is a decisive step in that direction. For this reason, buyers must be fully aware of the terms and conditions set out in the agreement. The registration of the sales mark must not erase the existing entry, i.e. the sales contract. This will remain the case and the last entry is the sales contract between the same parties that were included in the sales contract, so it will provide reasonable grounds for the appearance of such entries in the certificate of charge. The section 49 regime provides for a derogation from the above rule, providing that an unregistered document, which relates to the property and which must otherwise be registered either by the registration law or by the TPA, can be obtained as proof of a contract in an appeal for a specified benefit or as evidence of an incidental transaction.
The Supreme Court in KB Saha-Sons (P) Ltd/Development Consultant Ltd [(2008) 8 CSC 564] found that a mandatory document, if not registered, can only be considered in a court action for a given benefit as evidence of a contract performed between two parties and that this unregord document cannot be considered as proof of the content of the contract. Therefore, if a document is inadmissible as proof of non-registration, none of its provisions can be admitted as evidence. Yes, there are some pros and cons to the sale of a real estate sale agreement, but you can take certain precautions, while mentioning the contract by mentioning the cretine clauses, the time is necessary for the contract, if the buyer does not pay the remaining sale within the agreed time, the symbolic advance he has already paid expires and the contract is by notification. The limitation of a purchase contract may be more than 3 years, as mentioned in the special discharge law. If the buyer wants to take legal action under the guise of the agreement, he can do so. But you have the option to terminate the contract. to better insist on full payment and be registered. The Real Estate Act (Regulation – Development) 2016 (law) was notified in full on May 1, 2017. Section 3 of the Act requires the registration of a real estate project by the developer when the developer intends to promote, market, reserve or sell a property in the aforementioned project.