Earnest Money Agreement----Rgd. or Unregd.?

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QUESTIONS---ANSWERS

I am a property dealer,earlier we used to make "Earnest Money Agreements" (Agreement to sell) on plain papers with signatures on revenue stamp.

These days we are making these agreements on Rs.50/-stamp papers.

My question---Should we get these agreements registered or unregistered are ok--if some dispute arises?

Deals are in Crores.

Expert : Parveen Kr. Aggarwal

Posted On

19 January 2011

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It is always safer if the agreement to sell is got registered.

Expert : Devajyoti Barman

Posted On

19 January 2011

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Yes as the unregistered documents are easier to be eenforced through the civil court.

author : Anonymous

Posted On

19 January 2011

Devjyoti ji,

U say "Yes as the unregistered documents are easier to be eenforced through the civil court"

Do U mean to say that unregistered docs are have better legal stand than the registered ones?

Nevertheless---I mean to ask whether the unregistered "Agreement to sell" is valid in the court of law or not,if some dispute arises?

Expert : Devajyoti Barman

Posted On

19 January 2011

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No I mistyped it . I meant to say the 'registered agreement'.

The unregistered agreement is always valid in the court of law. The reistration of it helps if the purchaser wishes to file a suit for specific performance of contract in the event of refusal of th seller to complete the sale.

author : Anonymous

Posted On

19 January 2011

Devjyoti can we stand in the Court of law,with unregistered "Earnest Money Agreement or not?

Expert : Parveen Kr. Aggarwal

Posted On

19 January 2011

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If the possession of the property is delivered to the purchaser at the time of agreement to sell, it is necessary to get such an agreement registered.

author : Anonymous

Posted On

20 January 2011

Parveen Ji,possession is generally not handed over at the time of Earnest Money, so what--Rgd. or Unregd...?????????

Expert : Kirti Kar Tripathi

Posted On

20 January 2011

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REGISTERED AGREEMENT IS ALWAYS BETTER.

Expert : Parveen Kr. Aggarwal

Posted On

20 January 2011

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In case possession is not handed over at the time of agreement to sell, it is legally not necessary to get the agreement registered. But still it can be got registered. A registered agreement is easy to prove in the court in case of dispute.

Expert : niranjan

Posted On

20 January 2011

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U/s 49 of the Registration Act, suit for specific performance can be filed on unregd.sale agreement,but I have also come across judgments which say that suit on unregd.sale agreement is not maintainable. When the agreement is coupled with possession,it has tobe compulsorily regd. and without that suit will not lie for sure.