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Notarized agreement document is valid for Mortgage deed
16-Mar-2023 (In Property Law)
Hi,
Notarized agreement document between buyer and building developer (flats) is valid for Mortgage purpose.Still building is under construction and property is not registered on buyer name.
I want to know Notarized agreement document (between developer and buyer) is valid for mortgage deed purpose between buyer and third party. Please let me know.
Regards
Sheshadri P
To create a mortgage you will require title deeds. You cannot create a mortgage on a property that is not registered in your name. Thus a simple buyer's agreement signed with the builder cannot be used to mortgage the property as the title deeds to the property do not yet exist in hour name. However under certain conditions Banks may use such agreements to give you loans but in those cases the builders have an agreement with the banks in order to facilitate buying.
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Adv. Rohan Mittal
Panchkula | 200+ Answers
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How long is an unregistered contract valid?
Unregistered Sale contracts are legally binding and insufficient stamp payments can be ordered by a court. A sale contract without registration has a validity period of three years.
What if the date of agreement to sell and date of registration is different?
It is clear from 56(2)(vii), that the stamp duty amount can be calculated based on the agreement date fixing the consideration instead of the registration date. 11-Dec-2022
Can unregistered agreement of sale be used as an evidence for collateral purpose?
The Proviso of Section 49 of the Registration act allows for the use of unregistered documents as collateral purposes. A collateral transaction is one that is independent or divisible from the main transaction for which registration was required. 13-May-2023
What is the Supreme Court Judgement on agreement to sale?
The Supreme Court has ruled that although an Agreement to Sale does not transfer ownership rights to an immovable, if the prospective buyer performs their part of the agreement and takes possession of the property then they are said to have acquired possessory titles and the same applies... 07 Jun 2023
Yes, every document which is notarized shall be considered valid for any agreement you enter with any builder or buyer or any deed such as mortgage deed, sale deed etc. If the property is not registered and a dispute arises between you and third party, then you will not be able to prove that property belongs. It is advisable to get the property registered.
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Adv. Siddharth Gupta
Gurgaon | 100+ Answers
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