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What documentation is to be done when I am purchasing a land

I am planning to buy a land in south india. Current land owner is requesting 50% advance a month before land registration process. What is the process to secure this transaction? A signed agreement in stamp paper is valid ?

Answers (5)

An agreement of sale has to be executed between you and the vendor narrating all the relevant facts of the proposed sale, such as description of the property, term of validity of the sale agreement, the date by which the sale has to be concluded, the sale price, the advance paid and the forfeiture clause in case of default, if any. It should be duly witnessed by two independent witnesses.

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It is risky unless until you register agreement of sale with the registration department. Mere oral understanding or writing in paper without registering the same is of no use. Hence make one single payment subject to your convenience and ask the vendor to execute the sale deed on the date of the payment.

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In first place check legal of all the available documents and revenue records. Here in South India no one pays 50% advance before registering the property. If you have agreed for it please make sure you are registering the sale agreement in proper terms to avoid any further hindrance.

Most important thing is to see whether the seller has got a valid title over the property and he competent to enter into a sale deed . If everything is satisfactory you can go for a agreement for sale and it can be duly registered .

It is advisable to enter into a Sale Agreement with the buyer setting forth the terms and conditions of the sale.

Please note that the agreement for sale is compulsorily required to be registered as per Section 17 of the Registration Act. Registration of Sale Agreement attracts payment of Stamp duty and Registration Fee.

Also note that if you decide not to register the sale agreement, it will not have any evidential value. However, a unregistered sale agreement will be taken as a evidence of contract in specific performance suit as per Section 49 of the Registration Act.

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