08 ag. Registration of Unregistered Agreement to Sell
Registration of Unregistered Agreement to Sell: Why is it Important?
An agreement to sell is a legal document that outlines the terms and conditions of a property transaction between a buyer and a seller. It is an important document that helps both parties to have a clear understanding of the sale and purchase. The agreement to sell becomes a legal contract after the property is registered in the name of the buyer. However, there are instances where the agreement to sell is not registered with the concerned authority. In such cases, it is necessary to register the unregistered agreement to sell for securing the interests of both the parties.
Why Register an Unregistered Agreement to Sell?
Registration of an unregistered agreement to sell is important for several reasons. Firstly, it secures the interests of both the buyer and the seller. If the agreement to sell is not registered, it is not considered a legal document, and the parties cannot rely on it in case of disputes or legal proceedings.
Secondly, registration of the agreement to sell helps in establishing the ownership of the property. It is important to have a clear title of the property before the transaction takes place. An unregistered agreement to sell does not provide a clear title of the property. Registering the agreement to sell ensures that the ownership of the property is established and legally binding.
Thirdly, a registered agreement to sell helps in obtaining a home loan or other financial assistance. Banks and financial institutions require the agreement to sell to be registered before providing any financial assistance. An unregistered agreement to sell cannot be used as collateral for obtaining a home loan or any other financial assistance.
The registration procedure for an unregistered agreement to sell is a simple process. The parties involved in the transaction need to approach the concerned authority, which is the Sub-Registrar office in India. The registration fee for the document is usually a percentage of the property price. The authority thoroughly checks the document and then registers it. The registered agreement to sell is a legally binding document, and both the parties can rely on it in case of any future disputes.
In conclusion, it is important to register an unregistered agreement to sell for securing the interests of both the buyer and the seller. It ensures a clear title of the property, establishes ownership, and helps in obtaining financial assistance. The registration procedure is a simple process, and it is advisable to register the agreement to sell as soon as possible after its creation. As a professional, I hope this article gives you a clear understanding of the importance of registering an unregistered agreement to sell.