-For the purpose of this section, where the real estate project is to be developed in phases, every such phase shall be considered a standalone real estate project, and the promoter shall obtain registration under this Act for each phase separately. However, in case the advance payment paid at the time of executing the agreement of sale is less than 10% of the cost of the apartment, the promoter is not bound to register the agreement of sale as per the provisions of Section 13 of the act. Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. Moreover. . ATS is compulsorily registrable under RERA nevertheless not registered ATS is also enforceable under law. An agreement for selling is an agreement to sell a property in the future. Since the agreement is signed in front of the registrar, it ensures that the buyer is not being coerced to sign a particular clause. of the Transfer of Property Act and will not confer any title, nor transfer any interest in an immovable propertyhence, ATS was expressly derecognized as a valid mode of transfer of immovable property and it was held that only duly registered deed of conveyance can transfer the title. The Answer is, Yes. Observing that (1) an allotment letter has all the trappings of an agreement for sale, (2) the phrase as the case may be in section 18(1) of the Act is wide enough even to cover the allotment letter and (3)RERA is a welfare legislation, the court held that unregistered allotment letters can be relied upon for obtaining remedy under The Real Estate (Regulation & Development) Act, 2016. None of the RERA authorities of the major cities in terms of real estate transactions like Mumbai, Delhi, Ahmedabad, Bangalore, Chennai have addressed the registration of concern of buyers. Under the Registration Act, sec 17(2), the registration of an agreement to sell is not compulsory whereas it is made compulsory under the RERA Act. Therefore, the RERA Act, 2016 applies not only to future projects but also to ongoing projects where the construction began prior to 1 May 2017(implementation date of RERA in states). Sale deed vrs agreement to sale: Meaning, format, and difference Not only was the registration suspended during the lockdown phase, but even post lockdown, the functioning of the registration department remained hampered owing to restrictions provided under Standard Operating Procedure (SOPs). Section 54 of The Transfer of Property Act, 1882, defines it as:A contract for the sale of immovable property, is a contract that a sale of such property shall take place on the terms settled between the parties. links the relief to the allottee with ATS as it holds that the builder/developer is liable if he does not give possession in accordance with ATS. As per the amendment made to 17(1) of Indian Registration Act,1908 on 24.09.2001, an agreement to sell an immovable property has to be compulsorily registered in order to avail the protection U/s-53A of Transfer of Property Act.This process of registration of agreement to sell , gives the purchaser an immediate hold over the property from the date of execution. Section 17(2)(v) of the Registration Act, 1908 states that any document aside from the documents laid out in sub-section (1A) cannot in itself create, declare, assign, limit or extinguish any right, title, or interest for the value of one hundred rupees and upwards in immovable property, it merely creates a right to procure another document which, when executed would create, declare, assign, limit or extinguish any such right, title or interest. This article is written by Surbhi Khanna pursuing Certificate Course inches Real Estate Laws from LawSikho. In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Although other states have not directly provided relaxation in stamping and registration efforts for buyers, some states have facilitated and supplemented the process with initiatives like reduction of stamp duty and developing infrastructure to complete major parts of property registration online. in May 2020 cut the stamp duty charges from 5% to 3% for the properties in the range of INR 21 Lakh to INR 35 Lakh. Documents on which registration is compulsory, for the disposal deed of immovable feature, is not admissible in one courtroom in evidence for it is properly registered. it is not the compulsion in transfer of property act to make registration of any such agreement as it is a mutually agreed way of action between parties to the agreement but the registered agreements generally attach good reliance than unregistered. Relaxation provided by Real Estate Regulatory Authority (RERA) in The Indian Registration Act, 1908 defines the documents which are required to be compulsory and optionally registered under. However, with the enforcement of the. Section 49 of the Registration Act, 1908 gives that the documents which are required to be registered either under Section 17 of Registration Act, 1908 or under the Transfer of Property Act, 1882 will not, unless registered: However, the provision to Section 49 provides for an exception to the above rule i.e. Title of an immovable property can only be transferred through a duly stamped and registered sale deed. A Utah commercial real estate purchase and sale agreement outlines terms for a real estate transaction between a seller of commercial property and a prospective buyer. Therefore, the RERA Act, 2016 applies not only to future projects but also to ongoing projects where the construction began prior to 1 May 2017(implementation date of RERA in states). It is a legal document and you can register it at the office of the sub-registrar, appointed by state governments under the Indian Registration Act, 1908. However, since RERA categorically provides for registration of ATS between builder and allottee under Section 13 of RERA it will have an overriding effect on, of the Indian Registration Act, 1908 pursuant to the, if two laws govern the same factual situation, a law governing a specific subject matter (lex specialis) overrides a law governing only general matters. Real estate laws and many judgments delivered by the Supreme Court have mandated the registration of sale agreement, ie, builder-buyer agreement, but some developers have managed to find loopholes in the legal provisions and exploited homebuyers everywhere in the NCR. An Agreement to Sell is a memorandum of agreement, wherein the terms and conditions of a prospective sales deed are enumerated, along with proposed consideration and other key terms. This implies that registration of the sales deed is mandatory. He specialises in RTI-based information and open source data. All things considered, while the law may lean towards protecting the interests of purchasers, it only has so much power to rule in favour of the purchaser in case of ambiguities resulting out of unregistered agreements of sale. Non judicial stamp paper of the stamp duty value so calculated has to be purchased. Makaan.com does not offer any such advice. Relaxation provided by Real Estate Regulatory Authority - iPleaders Agreement to sell: RERA v Registration Act - iPleaders - Registered Hence it can be said that the provisions of the RERA Act, 2016 shall prevail over Registration Act, 2016 with respect to the agreement to sell. It is not necessary to register the Agreement for Sale. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Congratulations! I appreciate u in discussing this imp sec of REG act. You have entered an incorrect email address! So this agreement itself does not create any rights or interest within the property for the proposed buyer. The registration can take place at the Sub-Registration . Arbitral Award Likely to be Set Aside on the Grounds of Perverse and Unreasonable Interpretation of Contract, Arbitrability of Fraud Disputes: Supreme Court Reaffirms Arbitrability of Disputes Involving Allegations of Fraud, Appointment of Independent Director as an Occupier of Factory, Analysis of the Refund Process Under MCA21, Amendments in Geographical Indications (GI) Rules, Agreement of Sale in RERA and Registration Act, Display Calorie Value Menu Cards India FSSAI, Draft Environmental Impact Assessment Notification 2020, Regulatory Framework for Non-Personal Data Proposed, Protection and Enforcement of Design Rights in India, Documents Required For the Registration of LLP. While calculating the stamp duty the higher of the two values, i.e., the circle rate or the actual price paid, has to be taken into consideration. A sale deed is a legal document that proves that a property has been transferred from the seller to the buyer. Consequently, indirectly impacting the liquidity of builders as the buyer is not able to meet his/her payment commitments owing to pendency in the loan application(s), overall impacting the pace of working of real estate industry. Create a legally valid rental agreement through experts. Is document registration compulsory? - Law Times Journal Stamp duty is paid under the Indian Stamp Act, 1899 to record the agreement with the government once the stamp duty is paid the document becomes eligible to register under the Indian Registration Act, 1908 with sub-registrar by payment of registration fees. However, there are no judicial pronouncements to prove the fact that RERA Act 2016, should prevail over Registration Act 1908 but registering an agreement to sell is a wise move and is backed by various laws such as RERA Act, The Indian Contract Act, Specific Relief Act. Further, Maharashtra Real Estate Appellate Tribunal in Naim Kamruddin Shaikh vs JVPD properties Pvt Ltd has ruled that a registered agreement is not mandatory for obtaining a remedy under the Real Estate (Regulation & Development) Act, 2016 on the basis of the contention that RERA is welfare legislation, further Section 18(1) no sense restrict the relief to the parties who have executed a registered ATS only. This can be inferred from Section 13 of RERA which stipulates that a builder/developer cannot obtain more than 10% of the consideration amount without executing and registering the ATS. Registration of agreement to sale vs sale deed - Lawyersclubindia A contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties. This means that the RERA Act 2016 has to be read with the Registration Act, 1908. Sharma, the owner of a disputed 465 sq mt plot in Sector 15A, Noida, Uttar Pradesh, had received Rs 7 lakh as earnest amount from Saxena and had signed a sale agreement with him on January 22, 1993. Effect of Registration and Non-Registration Under the Registration Act With the view that stamping and registration is a major source of revenue, the states have a vested interest and are reluctant to provide any relaxation in the forms of extended time for completing the formalities of registration as this will directly delay their revenue proceeds that is why they are giving the incentive to encourage stamping irrespective of unavailability of proper resources to execute it. states about documents that are not compulsory for registration under the act, thus making an agreement to sell also a document which is not compulsory for registration under the Registration Act, 1908. of RERA Act, 2016 states that the promoter should not accept a sum of more than ten percent of the cost of the apartment, plot, or building, as the case could be, as an advance payment or as application fee from the individual without first getting into a written agreement for sale with such person and register such agreement for sale under any law for the time being in force. For instance, minimum franking charges in Bengaluru are pegged at 0.1% of the agreement value. 'Give Me Money': Putin's Mouthpiece Mocks 'Isolated, Lonely' Zelensky After NATO Setback, Watch: Cars sink in waterlogged roads as heavy rains batter Assam, Project Doordrishti: Network of CCTVs built with public support, advantage Kannauj police, Wagner fighters spotted in Russia ally Belarus: Report, NATO's Nightmare: U.S.-Led Bloc Scrambles To Match Russia's Mighty Military Spending | Key Details, Twitter explodes as Jungkook goes explicit! The answer is a simple 'NO'. of The Registration Act, 1908. 49 Registration Act, 1908. The final step involved is Registration of sale deed by approaching the Sub-Registrars office in order to get the sale deed registered. Section 13, The Real Estate (Regulation & Development) Act, 2016. Agreement of Sale in RERA and Registration Act - LegalRaj Once a document is registered, it becomes a public record and that is the whole intent of registration. Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act; Explanation. Role and importance of ATS in real estate transactions, The role of ATS by means of law is restricted to recording the understanding of parties for sale (ex, cept the creation of the limited right granted under, of Transfer of Property Act 1882 (TOPA)). That is why an agreement of utmost importance shall be registered. Further ATS is required to be executed and registered before the receiving payment of more than 10% of the property value from the buyer. These articles, the information therein and their other contents are for information purposes only. Fans go wild over Seven explicit version - Lyrics, meaning and more, RBIs climate meet highlights importance of collective effort, Horimiya: The Missing Pieces Episode 3 - Release date & time, where to watch, episode 2 recap, Curse of social media: Videos of violence driving people up the wall, to psychiatrists, NATOs Summit Backfired? of the same act it will not be admissible as evidence. Ownership of an immovable property can only be transferred through a duly stamped and registered bona- fide sale deed. However, as per. Sale certificate issued; Mortgage Agreement; Promissory note; Revenue Officer partitioning . See you there. Students ofLawsikho coursesregularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills. Before the notification of the Real Estate (Regulation & Development) Act, 2016, registration of contracts for the sale of immovable property was mainly governed by provisions of The Transfer of Property Act, 1882 and The Registration Act, 1908. On analyzing we can see that such documents cover ATS under its ambit. A sale deed is considered an authentic instrument because it establishes a clear title over the property since it is a compulsorily registrable document as per Section 17(1) of the Registration Act, 1908. It is generally . Therefore it can be said that the RERA Act, 2016 has implicitly amended Section 17 of The Registration Act, 1908. XVI of 1864, of the Indian Registration Act 1866, or the Indian Registration Act 1871, or the Indian Registration Act 1877, or the this Act came or comes into force, namely:-. As discussed above, ATS is to be registered under Section 13 of RERA. However, in case of the agreement to sell, this is not the case. Included in the offer will be the purchase price and additional conditions established by the buyer. The compulsory registration of the sales agreement also has some disadvantages for the buyer. It is not necessary to register the Agreement for Sale. 1 in commercial sales, based on the most recent registration data through April. Witness for every agreement is not legally compulsorily required unless specifically required by any law. Irrespective of power granted, very few State RERA Authorities have acknowledged this concern of Buyers. Whether or not the agreement to sell should be registered or not answers this post. This agreement defines the terms and conditions, under which the property should be transferred. Irrespective of the fact that respective RERA authorities of states have the power to issue directions the concern of registration of ATS remained untouched. Before the notification of the Real Estate (Regulation & Development) Act, 2016, registration of contracts for one sale of unyielding property was mainly governed by provisions starting To Transfer of Property Act, 1882 plus The Registration Act, 1908. So, if you are buying a house for Rs. provides for an exception to the above rule i.e. So unless the central act is amended or state amends it only court can tell and interpret the intent of RERA Provisions.