The purchase contract may or may not lead to an actual sale of the property in question. Some of the stamp duty laws, such as the Maharashtra Stamp Act, consider an agreement to sell a property on the same basis as an appropriate deed of transfer and are therefore subject to the same stamp duty applicable to the appropriate deed of transfer or sale of a property. Because of these provisions that require the payment of stamp duty on a contract of sale, people mistakenly perceive a contract of sale as an appropriate deed of sale. Signing a sales contract becomes important in light of several factors. First, it is legal proof that in the event of a dispute, buyers and sellers enter into an agreement on the basis of which the future course of action is decided. When you apply for a home loan, the bank will not accept your application until you sign a purchase agreement. In cases where you have purchased and taken possession of a property under a purchase agreement, title to the property will remain with the developer unless a deed of sale has been signed and subsequently registered under the Indian Registration Act. This clearly shows that a title deed can only be transferred by a deed of sale. In the absence of a duly stamped and registered deed of sale, the buyer of the property has no right, title or share in any property. Honestly, there are pros and cons to buying an MHADA apartment.
MHADA apartments are cheaper than other apartments and have an increasing sales value. However, buying an MHADA apartment is not preferred by people who want full ownership of the property. The final ownership of the MHADA apartment remains the property of the Maharashtra Housing and Area Development Authority and an annual rent must be paid to them. This absolute rule is subject to the exception in section 53A of the Transfer of Ownership Act. Article 53A provides that if the buyer has come into possession of the transferred asset while fully fulfilling its part of the obligation under the contract, the seller has no right to interfere with the asset so bestowed on the buyer. It should be noted that Article 53A provides the prospective acquirer with protection against the assignor and prevents the transferor from interfering with the purchaser`s property, but it does not repair the buyer`s ownership of the property. Ownership of the property remains the property of the seller. It is clear from the above definition that a purchase contract contains a promise to transfer an asset in question in the future to meet certain conditions.
Thus, this agreement itself does not create any right or interest in the property for the proposed buyer. “Immovable property may be transferred only by means of a deed of assignment duly stamped and registered by law. We therefore reiterate that real estate can only be legally and legally transferred/transferred through a registered deed of transfer. “Remember that both parties must comply with the conditions set out in the sales contract. Any party who violates any of the conditions set out in the Contract may be taken to court if the other party so wishes. All interested parties should also be aware that this document can be cited as legal evidence in court and that all those who have agreed to comply with the conditions are legally obliged to do so. The deed of sale is the most important legal document by which a seller transfers his right of ownership to the buyer, who then acquires absolute ownership of the property. On October 31, 2020, a 40-year-old man was arrested by Noida police for deceiving a bank of 2 crore rupees by falsifying deeds of sale and taking loans. On the same day, Madurai Main Session Judge G Ilangovan granted early bail to two sub-registrants arrested by the Dindigul District Crimes Division for registering documents without prior review.
According to the police, the two registered the deed of sale without checking the debit certificate, as well as the original documents, parental documents, death certificate, etc. You should note that the MHADA rules for real estate sales must be followed exactly as mentioned. If there is a gap discovered by the MHADA team, you will be immediately evicted from the property and face legal action. The procedure for transferring the MHADA apartment for resale is simple, but you need to pay attention to a few things. Even if the signing of the purchase contract does not mean that the sale is complete, it is a crucial step in this direction. For this reason, buyers should be fully aware of the conditions set out in the contract. A sale agreement is an agreement to sell a property in the future. This agreement defines the conditions under which the property in question is transferred. The Transfer of Ownership Act 1882, which governs matters relating to the sale and transfer of home ownership, defines the purchase contract or a purchase contract as follows: A deed of sale is a legal document that proves that the seller has transferred absolute ownership of the property to the buyer. Through this document, the rights and interests in the property are acquired by the new owner. A deed of sale generally consists of the following information: “Any contract of purchase (contract of sale) that is not a registered deed of transfer (deed of sale) would not meet the requirements of sections 54 and 55 of the Transfer of Ownership Act and does not confer title or transfer shares in a property (with the exception of limited rights granted under section 53A of the transfer of ownership).
According to the Indian Registration Act of 1908, any agreement to transfer shares in a property worth more than one hundred rupees must be registered. Thus, if you have purchased a property under a contract of sale without an appropriate deed of sale, you will not receive any right or interest in the property that is supposed to be transferred under the purchase contract. 1. The price of these apartments is very cheap and if they are bought at the right time, in a few years more than twice as much. After a few years, the resale value will more than double. The Supreme Court also reaffirmed the importance of the purchase agreement between the builder and the buyer, as it recently ruled that the period of allocation of a residential unit to a home buyer must be taken into account from the date of the builder-buyer contract and not from the date of registration of the project under the Real Estate (Regulation and Development) Act. 2016. The court also ordered the RERA authorities to order the payment of compensation to the builder in accordance with the contract of sale, the sanctity of which was maintained by that order. According to the Law on transfer of ownership, a purchase contract, with or without possession, is not a transfer. Section 54 of the Transfer of Ownership Act states that the sale of property may be effected only by means of a registered instrument and that a purchase contract does not cause interest or costs on its object. Further details on the MHADA transfer of ownership procedure can be found on www.mhada.gov.in/en/e-mitra/transfer-of-tenements-%28tot%29 The Supreme Court of India in 2012 in the case of Suraj Lamp & Industries (P) Ltd (2) v. The State of Haryana, while dealing with the validity of sales of immovable property by proxy, has ruled as follows: “A contract for the sale of immovable property is a contract that permits a sale of such immovable property between article 54 of article 54 also provides that `it does not inherently create an interest in such property or costs for such property`.
In the event of the seller`s failure to sell or take possession of the property to the buyer, the buyer will be entitled to certain services under the provisions of the Specific Repairs Act 1963. . .
