Understanding the Risks of Cheque Bounce After Property Registration

Question

Understanding the Risks of Cheque Bounce After Property Registration

04-Jul-2024 (In Property Law)

I'm selling my property, and the buyer still owes me 6 lakh. He wants me to register the property in his name and give me a post-dated cheque. I didn't agree to this. The buyer suggests mentioning the cheque details at the time of registration, and if the cheque bounces, I can stop the registration in the sub-registrar's office. Is this safe? What are the risks of cheque bounce after property registration?

Answers (4)

Answer #1

Adv. Chikirsha Mohanty

Delhi | 200+ Answers

Chat CONTACT NOW

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Connect with top Property lawyers for your specific legal issue

Connect with a Lawyer

Comments by Users

No Comments! Be the first one to comment.

Recent Questions

Illegal construction by builder on terrace

Kbja shmbdit kbja dilane ki kripa kre

Purchase power issue while buying the property

Need refund of booking and taxes

Recovery of money from builder

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

All Answers

LawRato LawRato · Accepted Answer · 2024-07-04T13:53:07+05:30

A bounced cheque given during or after property registration can lead to serious legal complications, but it does not automatically cancel or nullify the registered sale deed. Property registration is a legal act that, once completed, makes the buyer the lawful owner regardless of whether the full payment was actually received. If the cheque issued for the property payment bounces, the seller's remedy is legal recourse, typically by filing a case under Section 138 of the Negotiable Instruments Act for cheque dishonor, and possibly a civil suit for recovery of dues.

While it's legally permissible to issue a cheque at the time of registration, it's highly recommended to ensure that payments are either made in advance or through cleared funds to avoid such risks. If a cheque bounces, it may not affect the ownership, but it can still lead to criminal liability and financial loss for the buyer.

Advocate Vijay Belavadi LawRato · Accepted Answer · 2024-07-04T13:53:07+05:30

Answer #2

I wouldn't recommend sale and registration of sale deed when the purchaser is paying through post dated cheques. A sale deed is a document wherein the right, title, and interest, along with possession is transferred to a purchaser. You will transfer your interest without receiving your complete sale consideration, that you wouldn't be wise. Think of a scenario when the cheque gets bounced.

Helpful?

6+

Adv. Vijay Belavadi Adv. Vijay Belavadi

Bangalore / Bengaluru | 5+ Answers

Chat CONTACT NOW

Advocate M Lakshmikanth Arya LawRato · Accepted Answer · 2024-07-04T13:53:07+05:30

Answer #3

Respected From the facts of your case, it can be say that better you go for Agreement of Sale as you told there is still due balence and mention all the amount and cheque details in the said agreement of Sale. Don't registered until you receive the full amount. The Cheque is valid. If the cheque is dishonored, it may become the route cause for another legal problem. The whole registration may become null and voide. As you informed that the buyer is ready to give post dated cheques, in case if it bounce it give raise to another cause of action. From your fact itself seen there is some error of legality in the communication between yourand the buyer. Please contact us or contact any advocate before proceed to register the Sale Deed.

Helpful?

Adv. M Lakshmikanth Arya Adv. M Lakshmikanth Arya

Bangalore / Bengaluru | 700+ Answers

Chat CONTACT NOW

LawRato LawRato · Accepted Answer · 2024-07-04T13:53:07+05:30

Answer #4

What he says is true, but you better engage a lawyer to draft the sale deed incorporating the matter of cheques in it, and on the date of execution of sale deed. The suggestions here may not cover all the situations which may arise at the last minute there.

Helpful?