VALIDITY OF REGISTERED SALE FOR AGREEMENT (BANAKHAT)

1. Definition:

   • A “Banakhat” is a registered sale agreement executed at the Sub-Registrar’s Office, which is evidence of a sale transaction between buyer and seller.

2. Legal Validity:

   • Once registered under the Indian Registration Act, 1908, the Banakhat is legally valid as evidence of sale.

   • It creates obligations on both parties—seller must eventually execute the sale deed, and buyer must pay the agreed amount as per the agreement.

   • It does not transfer ownership automatically; ownership transfers only when the sale deed is executed and registered.

3. Enforceability:

   • Courts recognize a registered agreement as valid evidence in case of disputes.

   • If the seller refuses to execute the sale deed, the buyer can file a suit for specific performance under Section 16 of the Specific Relief Act.

4. Validity Period:

   • There is no fixed “expiry” of the registered agreement itself.

   • However, in practice, the buyer should ensure the sale deed is executed within the timeframe mentioned in the agreement; otherwise, legal action may be required.

 Recommendation: Always consult a property lawyer or Lawrato expert to check that the agreement is properly drafted, registered, and enforceable, especially before paying the full amount or taking possession.