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DIFFERENCE IN SALE AGREEMENT/SALE DEED


20-Dec-2023 (In Property Law)
My grandmother (mothers mother)nacquired a property in CheƱnai in 1936 My grandmother had only one child ie my mother withbrothers/sister's to my mother. My grandmother passed away in 1991 and my mother bequeathed property in her sole name in 1991 My fatherpassedawayin2007 My motherhas fourchildrenthreedaughtersandmyself her onlyson. My mothermadesettlement deedin2008 in my favour for the property but held ownership rights and my mother settled ownership rights in my favour in August with registration of settlement deed as she is very old. IS noc from mysistersmust?n2 Buyer wants to enter into sale agreement and wants to showslightly higherpricethan agreed price orally for getting higher bank loan. He says sale deed will show only the original agreed price and seller wont be impacted at all on account of showing higher sale amount. Pl let me know if this is legally valid or I should not agree to his conditions and ask him to stick only to oral agreed amount only in sale agreement.
Answers (2)

Answer #1
914 votes
This situation will happen all properties with a higher value. this is general in practice making two agreements. one is actual value another one is higher price the higher price may be collected through cash actual price may be collected through cheque. after execution of sale deed the duplicate agreement will be disposed by both the parties the second agreement is called mutual agreement.
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Answer #2
805 votes
1. It would be much better if you get a Release Deed from your sister (Some buyers might ask for it). NOC is not applicable in this.

2. ATS (Agreement to Sale) should contain the actual terms only. If anything goes wrong, you may also face severe consequences.

I presume that the buyer might find hard to avail personal loan, so maybe he might be using this property to get loan in it, and asked you to accede his request to make an ATS with an exaggerated amount. And what if he tries to deceive you or the bank?

If you agree to that exaggerated amount in the sale agreement, then it will be an impediment to prove it.

Advocate Ragul Sivanand
Nagercoil
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